Astana - November 2008

1. “Break Through Projects of the National Company “KazMunayGas” Astana - November 2008

2. JSC National Company “KazMunayGas” “Beineu-Bozoi-Akbulak” Main Gas Pipeline

3. JSC National Company “KazMunayGas” “Beineu-Bozoi-Akbulak Main Gas Pipeline” Project goal Project of construction of the “Beineu-Bozoi-Akbulak” main gas pipeline is being implemented in accordance with the Message of the Head of the State N.Nazarbayev to the people of Kazakhstan оf 6th February 2008 with a view of meeting the needs of the southern regions of the republic in gas, elimination of dependence on import gas and maintenance of the country’s energy security. Due to the absence of gas transportation mains between the bulk consumers of natural gas in the south of the country and the major gas producing regions in the west of Kazakhstan, the country’s south, through the historically formed infrastructure, is supplied by gas from Uzbekistan. The construction оf the “Beineu-Bozoi-Akbulak” gas pipeline will allow solving the following tasks: • To ensure gas supply from the major gas producing regions in the west of Kazakhstan to the southern regions • To decrease dependence on gas import • To solve the problems of gas supply of the communities located along the gas pipeline route

4. Bozoi Beineu Akbulak Beineu-Bozoi-Akbulak main gas pipeline route JSC National Company “KazMunayGas” “Beineu-Bozoi-Akbulak Main Gas Pipeline” Length: 1510 km • Construction of the I line (throughput capacity 5 bln. m3 per year): June 2009 – June 2011 • Construction of the II line (throughput capacity 10 bln. m3 per year): 2013 – December 2014 • Provide the southern regions of the republic with domestic gas • Resolve the issues of gas supply to the localities situated along the route of the gas pipeline • Ensure gas supplies for steady operations of the Zhambyl SDPP (State District Power Plant) • Normalize prices and supply volumes of gas to consumer

5. JSC National Company “KazMunayGas” “Beineu-Bozoi-Akbulak Main Gas Pipeline” Basic indices

6. JSC National Company “KazMunayGas” “Beineu-Bozoi-Akbulak Main Gas Pipeline” Economic and social benefits • Improvement of gas supply of the country’s southern oblasts. • Decrease in the volumes of gas import. • Construction of infrastructure facilities along the gas pipeline route. • Growth of the population’s employment – number of personnel for running of the pipeline will make 500 persons. • Possibility of export of Kazakhstan gas to China by the “Kazakhstan – China” gas pipeline. • Growth of Kazakhstan’s revenues from taxes and assessments to budget.

7. JSC National Company “KazMunayGas” “First Integrated Gas-and-Chemical Complex in Atyrau Oblast”

8. JSC National Company “KazMunayGas” “First Integrated Gas-and-Chemical Complex in Atyrau Oblast” General Data of the Project • Goal:processing of the hydrocarbon gas of the Теngiz field, increase in the added value оf the produced hydrocarbons. • Contractor of the project: LLP Kazakhstan Petrochemical Industries Inc. (hereinafter – LLP KPI Inc.), the participatory interest of KMG Exploration Production JSC (hereinafter – KMG EP) – 50%, LyondellBasell – 25%, JSC SAT&Company – 25% • Feedstock: petroleum gas of the Tengiz deposit – 7.0 bln.m3 • Products: 800 thousand tons/year of polyethylene, 450 thousand tons/year of polypropylene • Location: Karabatan station in Atyrau oblast • Completion date: 2013 year • Payback period: 4.75 years • Total cost: 6.3 bln. USD (equity – 1.89 bln. USD, debt funds – 4.41 bln. USD). • Financial adviser – HSBC Bank, UK. • Legal adviser – White & Case, UK. • PMC (Technical adviser) – Foster Wheeler, UK.

9. JSC National Company “KazMunayGas” “First Integrated Gas-and-Chemical Complex in Atyrau Oblast” Organizational Breakdown Structure of the Project

10. JSC National Company “KazMunayGas” “First Integrated Gas-and-Chemical Complex in Atyrau Oblast” State support of the Project • The Decree of the President of the Republic of Kazakhstan “On Establishment of free economic area “National Industrial petrochemical park” No.495 of December 19, 2007 was signed. • The Republican Budget Committee at the tenth meeting approved parameters of the amended republican budget of 2008, including extension of a budget credit in the amount of 10 bln.tenge for 2008, through FSD Kazyna for construction of infrastructural objects of the Project. The draft law “On the Republican Budget for 2009-2011” provides for financing of construction of the Project’s infrastructure at the expense of budget funds in the amount of 717 mln. USD (2008 - 83 mln.$, 2009 and 2010 - 300 mln.$, 2011- 117 mln. $). • For the purposes of state support of implementation of the Project, it is proposed to consider a possibility of extension of a budget credit through JSC “FSW “Samruk – Kazyna” in the amount of 800 mln. USD for financing of construction of infrastructural objects of the Project in the period since 2008 till 2011. Interest rate – no more 3% per year, for the period of 20 years, with grace period of 6 years. • Conclusion of the credit agreement with JSC Development Bank of Kazakhstan and sub-borrower LLP KPI Inc in December 2008 for the amount of 10 bln. tenge (83 mln.$).

11. АО «Национальная компания «КазМунайГаз» Республика Казахстан, 010000, Астана,пр. Кабанбай батыра, 19 тел.: +7 (7172) 97-61-01 факс: +7 (7172) 97-60-00, 97-60-01 e-mail: Astana@kmg.kz http://www.kmg.kz