KazMunaiGas EP Halts Oil Output Decline After Replacing Workers

KazMunaiGas Exploration Production (RDGZ), a London-listed Kazakh oil producer, said it “‘stabilized’’ output at its Uzenmunaigaz unit after replacing fired workers.

Employees at Uzenmunaigaz’s transport division went on strike on July 9 over pay. About 900 of Uzenmunaigaz’s 9,000 employees were fired because of their ‘‘illegal” action, Mikhail Dorofeyev, an Astana-based KazMunaiGas EP spokesman, said today by telephone. The company has hired about 500 workers as a replacement, he said.

KazMunaiGas EP’s oil output may miss its target for the year by 800,000 metric tons, or 6 percent of its total production, the oil producer said in a statement, citing the strike among reasons for the decline. That is the same level expected in July, compared with a June estimate of 600,000 tons.

About 25 employees are still refusing to work compared with a peak of around 2,500 people in June, Dorofeyev said. KazMunaiGas EP said it hired workers from among the residents of nearby areas.

The company has also fired about 400 protesting workers, out of the 4,500-strong workforce, at its Karazhanbasmunai venture with China’s Citic Group in western Kazakhstan, he said.


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