TenizService 51%

Kaz M-I SWACO

Drilling Solutions

Environmental Solutions

Production Technologie

s

WellboreProductivity

Schlumberger49%

• Drilling Fluids• Reservoir drill

in fluids• Engineering

software & services

• Specialized Tools

• Filtration Services

• Completion Fluids Chemicals

The structure of Kaz M-I SWACO

• Drilling waste management

• Solids control equipment

• Fluids recycling/reuse

• Pressure control• Rig

instrumentation

• All range of production chemicals

• Commodities and raw materials

• SULFATREAT H2S and Mercaptans removal

• Production Waste Management

TenizService LLP• A joint venture of KazMunaiGaz (state oil company) and

Waterford International• Established in 2003 in order to implement the

President’s decree and the state program of the Kazakhstan Sector of the Caspian Sea (KSCS) development.

• Main goals and investments - design, construction and operation of coastal infrastructure facilities for oil & gas industry of Kazakhstan.

Bautino village facilities (operating):• Marine Operations Support Base• Marine Fuelling Station• Waste Management Polygon• Crew Hotel

Kuryk village facilities (in development):• Marine Operations Support Base• Oil export terminal

Atyrau oblast (projected): • North Caspian Ecological Emergency

Response Base

Bautino Liquid Mud Plant

• Main Tank Farm capacity – 4 000 m3• Bulk Silo Farm capacity – 1 200 m3• Capability of 84 000 m3 liquid mud per year

• 60 000 m3 per year of oil based mud• 24 000 m3 per year of water based mud

• 3 500 m2 warehouse• Loading/offloading of supply vessels

The support base to provideliquid mud and bulk materialsfor Caspian offshore development ($12 MM M-I SWACO/Schlumberger investment)

Agip-KCOZhambylCMOCN-Operating

Thermal Desorption Facility (waste minimization)

• 2 units – Bautino and Tengiz• Thermally cleans oil-contaminated

cuttings• Recovers and recycles the oil to reduce

cost of operations• Reduces environmental impact• Reduces disposal cost

• Treated over 270 000 tons of cuttings to date• Recovered over 40 000 tons of oil for re-use

DRILLING CUTTINGS RE-INJECTION (ENVIRONMENTAL SOLUTION)

Allows to inject drill cuttings under the surface, completely eliminating pollution and the need to dispose cuttings in onshore polygons

A total of 4880 cubic meter of cuttings and oily water are safely injected for Agip-KCOReduces environmental impact and eliminates the risk of offshore spills

The only company licensed to operate and maintain CRI in Kazakhstan

$11.7 MM MI-SWACO/SCHLUMBERGER investment

KAZ M-I BENEFITS

JOINT VENTURE BENEFITS

Competitiveness full technical support Schlumberger/

Teniz Service

Upgrade the technical and Manager skills of local staff

Improve current and apply innovative technologies