UPDATE 2-Kazakh state oil company's 2007 income, output rise

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By Raushan Nurshayeva

ASTANA, Jan 31 (Reuters) - Kazakh state energy company KazMunaiGas [KMG.UL] reported a 3.5 percent rise in 2007 net income on Thursday and a 30-percent jump in crude output due to acquisitions of new production assets.

Citing preliminary data, KazMunaiGas President Uzakbai Karabalin said in a speech that net income was 226.7 billion tenge ($1.9 billion) in 2007.

He said revenues rose 5.1 percent to 1.3 trillion tenge ($11 billion) while combined oil and gas condensate production expanded by 29.5 percent to 16.7 million tonnes.

"Such a big rise was due to acquisitions and consolidation in 2007," Karabalin said.

The company's London-traded upstream unit, KazMunaiGas E&P (KMGq.L), bought 50-percent stakes in smaller producers Kazgermunai and CITIC Canada Energy Limited last year.

Karabalin said oil processing volumes at Kazakhstan's three main refineries rose 53 percent year-on-year to 5.7 million tonnes.

"KazMunaiGas's acquisition of a share in the Shymkent refinery played a big role in this expansion," he said, referring to last year's purchase of a 50 percent stake in the south-Kazakhstan refinery.