May 31, 2011 / 8:15 AM / 7 years ago

Strike hits output at Kazakh KMG EP's oil field

* Workers demand system of payments be revised

* Strike earlier cut output at firm’s venture with China

ALMATY, May 31 (Reuters) - Kazakhstan’s London-listed oil and gas firm KazMunaiGas Exploration Production (KMGq.L) RDGZ.KZ (KMG EP) is suffering a daily output loss of some 2,000 tonnes of crude oil due to a workers’ strike, it said on Tuesday.

Workers at the company’s Uzenmunaigas (UMG) facility in western Kazakhstan went on strike on May 24, demanding that a new system of payment be introduced.

“Some of the UMG workers, especially from the transportation unit, did not come to work which disrupted normal well servicing and well workover operations,” KMG EP said in a statement to investors.

    It said it believes the protesters’ demands are unfounded, adding that a local court ruling had confirmed it last week, while the local administration had never permitted the strike.

    “The degree of impact on the annual production of the conmpany depends on how quickly stable production at UMG will be restored,” it said.

    Earlier this month a strike hit output at Karazhanbasmunai (KBM), a joint venture that unites KMG EP and CITIC, China’s biggest state-owned investment company. (Reporting by Dmitry Solovyov; Editing by Greg Mahlich)

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