Tengizchevroil CRA/Carbon OCTG RFP

1. Tengizchevroil CRA/Carbon OCTG RFP Supplier Meeting-Tenaris March 6, 2008 Houston, Texas TCO Confidential TCO Confidential

2. Tenaris-Discussions; Agreements & Action Items Shipping Terms (Ex B Rev2 03.04.08) 4.1 • Shipping terms required by TCO are unclear at this time with confusion by all parties. The original RFP documents (Exhibit B) were sent with CIP Kulsary Station INCOTERMS 2000 with “Title to the products shall be transferred to COMPANY at the shipping point…”. During the initial RFP response period, TCO issued a clarification to all suppliers to submit pricing DDU Kulsary with the same title conditions. Juan Carlos also recalled and discussed the shipping terms questions and issues that occurred with TCO in late 2003 and early 2004 on the TCO contract when one of the key requirements and considerations was the title transfer out of country. • Tenaris advised that they actually offered & quoted RFP pricing as DDU Kulsary. • Action items to clarify & determine final answers. • Tenaris will go back to the 2003 contract shipping term discussions to review and recall their understanding. Tenaris will provide any relevant e-mails on this topic. • TCO should determine & advise if they want, or do not want, insurance. Can TCO cover the insurance? At what point does TCO’s insurance take over and cover? • ->Tenaris will provide the cost of the insurance to TCO. They recall it being a relatively low cost. • Tenaris will investigate further and provide a response/discussion on their understanding of shipping terms. TCO Confidential

3. Tenaris-Discussions; Agreements & Action Items Packing • TCO confirmed that TCO requests wooden crates for shipping the CRA products only (does not include the carbon products which can be shipped loose with rings, etc and can use slings). • Tenaris confirmed that their pricing has been submitted accordingly. GOST & GGT Certification • ->Tenaris understands the requirements and has been able to handle this in the past. However, they need to verify which the that may not be GOST at the current time. Terms & Conditions • Tenaris & TCO agreed that the Tenaris IMA 010 with Chevron will be used. TCO Confidential

4. Tenaris-Discussions; Agreements & Action Items Lead & Manufacturing Times-Exhibit B, Section 1.3 • Tenaris confirmed their proposed manufacturing and lead times submitted in the price template are valid and are on the conservative, safe side. They also advised that the times include shipping as well as manufacturing. Their times are generally 240 days (8 months) for the carbon casing & sour service casing; 270 days for the sour service carbon tubing; and 330 days for the CRA tubing & casing. Shipping Routes • Tenaris advises that the shipping route for the carbon is ocean shipping from the mill to St Petersburg, Russia and then railed to Kulsary. • Tenaris advises that the shipping route for the CRA is from Sandvik in Sweden to the FAST threading facility near Dalmine, Italy and then railed from FAST to Kulsary. TCO Confidential

5. Tenaris-Discussions; Agreements & Action Items Pricing Proposal & Indexing-Exhibit B, Section 5 • Tenaris acknowledges and agreed that their RFP pricing submittal (base prices) was based on the raw material price basis (~October 31, 2007) provided by TCO in Exhibit B. • TCO & Tenaris understand and confirm that the index formula will be applicable on day 1 of the contract to adjust pricing for each order and PO. Based on the index calculation, base prices for the specific PO will be adjusted accordingly – either increased or decreased. • Tenaris suggested that the nickel index price be based & determined on the most recent daily prices on LME settlement. Note that this was the same as proposed by TCO in the RFP. • Tenaris suggested using the most recent weekly average for the FerroMoly. This is slightly different than the RFP which proposed using the mid-point price for the week. • Tenaris suggested that perhaps consideration be given to two indexes for the carbon OCTG products-one for the low alloy carbon (K55; L80) and one for the high alloy & NACE carbon alloys. The only changes to the index will be the metallurgical composition weights and %’s. If Tenaris wants to propose this, they must identify and provide the various products and grades that will go in each index market basket. • Tenaris suggested that formula could be simplified by perhaps removing copper and manganese since they are such small % and very minor cost consideration. • Tenaris & TCO agree with using one index for the CRA’s. • Tenaris proposes adjusting the CPI inflation at the time of the order. • ->Tenaris will provide a detailed description of any proposed deviation or adjustments to that proposed in the RFP. TCO Confidential

6. Tenaris-Discussions; Agreements & Action Items Pricing Proposal-Exhibit B, Section 7.1-Buyback • Tenaris is not able to provide a specific % for the buyback of products from TCO. At this point, there are too many variables due to each customer having their own specs for the high alloys and CRA’s. However, they are agreeable to work with TCO for some alternate scheme (perhaps end of contract?, etc) but cannot place a % or value on it at now. • TCO advised that TCO has in-country privileges, due to the specific contractual details in it’s production agreement, on duties and VAT. It is easier for TCO to re-export out of Kaz and return to the supplier than it is to sell within Kaz. • ->Tenaris will review and propose alternate language regarding buyback cooperation and assistance at some level. TCO Confidential

7. Tenaris-Discussions; Agreements & Action Items Pricing Proposal-Exhibit B, Section 8-Cancellation • TCO agrees that Tenaris proposed cancellation %’s are generally acceptable with the following exceptions and clarifications. • Tenaris will provide clarify their proposal and provide descriptions/definitions regarding the various steps (ie-description of “before finishing”. • Tenaris will review their buyback proposal for CRA to determine if it can be improved. As currently proposed, it offers nothing to TCO and is not acceptable (ie-TCO pays 100% of product price if canceled prior to dispatch from Sanvik regardless of what stage of material acquisition or manufacturing it might be in). TCO Confidential

8. Tenaris-Discussions; Agreements & Action Items Technical & Market Basket • Tenaris suggests using the Hydril 513 (wedge thread; flush joint) instead of the HDL on the 5” liner. • ->TCO advises them to make the proposal and provide the technical data for comparisons. • Tenaris proposed pricing for both the 3SB and the Blue premium connections. However, TCO cannot use the Blue until Dr. Wu reviews the CVX operating performance & experience with the Blue to determine if the connection rating of the Blue can be changed. • Henry and Dennis will discuss with Dr Wu. TCO Confidential

9. Tenaris-Discussions; Agreements & Action Items Volume & Mill Availability • TCO clarified and discussed the well designs and the forecasted CRA volume cases. Since the issuance of the RFP, TCO now believes that the most likely scenario and CRA forecst case is either 1) FGC, MRWO upsize, FFP Full CRA 5-1/2” (red line on forecast curve) or 2) FGC, MRWO upsize, FFP Full CRA (fuchsia line on forecast curve). This will move the forecasted CRA volumes towards the higher ranges. Also, TCO advised that drilling will probably slide by on-half year to now start in 2010. See slide 11 above (move the curves to the right to correct for the drilling start up change). • Tenaris confirms that Sandvik has OCTG capacity of ~7,000 mtons/year (depends on product mix). Tenaris also confirms that they have the capacity currently available to meet the TCO forecast requirements if the order were placed today. Next Meeting Date-Tuesday March 18, 2008 at Chevron offices at 1500 Louisiana Street. TCO Confidential