Luca VignatiAktau, 25 September 2012

KARACHAGANAK ACTIVITY REVIEW AND LONG TERM DEVELOPMENT PLANS

WORLD CLASS EXPERTISE – WORLD CLASS ASSET

FIELD OVERVIEW

One of the world’s largest gas condensate fields; Discovered in 1979; Gross reserves – over 2.4 billion barrels of condensate and 16 tcf of gas.

New agreement – 14 December 2011

29.25%

29.25%

18%

13.5%

The Republic of Kazakhstan, the Contracting Companies and KPO have recently completed the agreement in relation to the Karachaganak Project that was initially signed on 14 December 2011.

Under the terms of the agreement the Republic has acquired a 10% interest in the Karachaganak Final Production Sharing Agreement.

The Republic’s interest in the Final Production Sharing Agreement will be managed by the national oil company, KazMunaiGas (KMG).

The consideration under the agreement also includes the allocation of an additional 2 million tonnes per year capacity in the Caspian Pipeline Consortium export pipeline over the remaining life of the Final Production Sharing Agreement .

10%

RESERVES AND INVESTMENTS

Karachaganak holds an estimated 9 billion barrels of condensate and 48 trillion cubic feet (tcf) of gas.

To date, around 7-8% of the recoverable hydrocarbons initially in place have been produced.

Since the signing of the FPSA:• $15.3 bln invested into developing the field, applying

industry leading technology aimed at maximizing sustainable economic value

• $14.6 bln of direct payments to RoK budget

KPC

Unit 2

Unit 3

Unstabilised Oil

Sour Gas to Re-injection

Unstabilised Oil

65 000 BOEPD

Sour Gas

24 MSM3/dayOrenburg

Stabilised Oil

242 402 BOPD

CPC

MiniRefinery

Unstabilised Oil

15 000 BOEPD

Injection Wells

Production from Wells

Fuel Gas 2.4MSm3/d

FACILITIES OVERVIEW

Sour Gas

Production from Wells

Orenburg

Production from Wells

24 MSM3/day

50 MW

Power

Community

KPC- Atyrau oil pipeline (635km), operating since 2003

Two pumping stations, one at KPC, the other at Bolshoi Chagan; terminal at Atyrau for receipt and storage

Stabilised liquids exported via CPC and Atyrau – Samara

Principal sale points of stabilised liquids are Novorossyisk (Black Sea) and Primorsk (Baltic)

Sour gas and unstabilised liquids sent to Orenburg

PRINCIPAL EXPORT ROUTES

PRODUCTION AND INJECTION HISTORY

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Gas Injection

Gas Sales

Liquid Production

PSPA FPSA

Field Development Plan - Gas Balancing

Description Maximise production of

liquids based upon current gas handling limitations

Transfer currently shut-in KPC wells to Unit 2

Installation of two 5960m 10” pipelines between RMS-M and Unit2

Proposed Gas Balancing lines

P2MP2MEP2ME2P2ME3

Proposed Gas Balancing lines

P2MP2MEP2ME2P2ME3

Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FEED (internal)VAR 3FIDBid & Award LLIDeliver Line PipeDeliver ValvesDetailed DesignPrefabrication & RMS M mod.Pipeline Construction & Commissioning

Start Up

Gas Balancing2011 2012 20152013 2014

Field Development Plan - Plateau Extension Wells (P2ME3)

Structure on Top Reservoir Description Continuation of existing

Phase IIM,P2ME and P2ME2 drilling programme

Commencing either 2017 – 1 rig 2014 – 2 rigs

Total 12 wells

Phase 2ME (purple)

Phase 2ME2 (brown)

Phase 2ME3 (yellow)

Field Development Plan - Unit 2 Gas Injection Upgrade Project

Description Maximise volume of injected gas

with existing facilities Phase 1

Additional gas/liquid separation equipment for sustained flowrate

Phase 2 Process plant, field injection

facilities and wells

Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

EvaluationVAR 1Pre FEEDVAR 2FEED (internal)VAR 3FIDExecutionProduction

2011 2012 2013 2014

Unit 2 Gas Injection Upgrade Project2015 2016 2017

Unit 2

Additional trunk line

Field Development Plan - KPC Gas Debottlenecking Project

Description Increase overall KPC gas

processing by expanding MP gas handling capacity

MP gas handling system enhanced including new combined MP dehydration and dew-pointing train

Potential additional pipeline from KPC to Unit 3

Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Train 4 Test RunMobilise Project TeamConcept StudiesVAR 2FEEDTender & Award EPC

VAR 3FIDExecutionStart Up

2011 2012 2016

KPC Gas Debottlenecking Project2014 2015 20172013

2011 PERFORMANCE & ACHIEVEMENTS

SAFETY

LITF & RTIF – KPO in the top 10 best performers of oil & gas producers Road Traffic Incident – reduction of 85% from 2010

ENVIRONMENT

Gas Utilisation Rate - 99.92% (99.87% in 2010) whilst the regulatory target approved within gas utilisation programme is 99.75%.

LATEST PROJECTS TRAIN 4 - State Acceptance on 1 Dec. 2011 UGPP - State Acceptance on 9 Sept. 2011 3rd Storage tank on KPC

LOCAL CONTENT

Some 2,500 Kazakh vendors are currently registered on supplier database.

Since beginning of the FPSA in 1997, total value of contracts assigned to Kazakh companies exceeded $4 billion.

In 2011, KPO awarded contracts worth over $428 million to 341 Kazakh companies for the provision of goods, works and services.

In Q2 2012 the Local Content in Karachaganak project makes up to 56%

LOCAL CONTENT DEVELOPMENT INITIATIVES

• Pilot Project on organizing the manufacturing of high technology products for KPO and other O&G operators’ needs

• Aksai Industrial Park project is under implementation• AIP Project included to the Industrialisation Map, will employ 130 experts

• Spare Parts and Equipment Manufacturing Localisation Project • By WKO Entrepreneurs Association and support of WKO Akimat Technical Expert

Group has been created to perform the project.

• Working Group of KMG, KPO and “Kazakhstan Union of Machinery building companies” was created

• Local Content reporting in compliance with the current legislation requirements• KPO was registered in the MOG reporting system • Integrated Contract Plan for 2011-2014 placed on to KPO web-site and become visible

for all RoK business union

HUMAN RESOURCES

Total KPO Employees – 3681

NATIONAL EMPLOYEES UP TO 93% OF TOTAL KPO POPULATION

KPO NATIONAL STAFF HAS GROWN FROM:1,186 IN THE YEAR 2000 3,410 NOW

EXPATRIATE RESOURCES HAVE BEEN REDUCED BY 55% FROM: 587 IN THE YEAR 2000 271 NOW

Investments (plan 2012)• Annual nationals salary fund – $163 M • Annual training and development budget for nationals – $14.5 M• Annual payments for nationals as a part of collective agreement and

company social responsibility – $6.2 M

KPO NATIONALIZATION PROGRAMME (2009-2018)

Cat Description 31 Jan, 2012 Target 2013 (program) Dec, 20181 Management 69% 60% 70%2 Professional staff and

Supervisors95% 91% 95%

3 Technical staff 100% 100% 100%4 Support and Clerical 100% 100% 100%

Nationalization as of 31 of January 2012 vs Plan

KPO Nationalization trend 1998 - 2037

THANK YOU!