The document provides an overview and review of activities at the Karachaganak gas condensate field in Kazakhstan, including: 1) Karachaganak is one of the world's largest gas condensate fields, discovered in 1979 with over 2.4 billion barrels of condensate and 16 trillion cubic feet of gas reserves. 2) A new agreement in December 2011 gave Kazakhstan a 10% interest in the field managed by KazMunaiGas, along with additional pipeline capacity. 3) Future development plans through 2018 include well drilling programs, upgrading gas injection and processing facilities, and increasing pipeline throughput to maximize production and value from the remaining reserves. 4) Local employment and contracting have

1. Luca Vignati
Aktau, 25 September 2012
KARACHAGANAK ACTIVITY REVIEW AND
LONG TERM DEVELOPMENT PLANS
WORLD CLASS EXPERTISE – WORLD CLASS ASSET

2. 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.

3. 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%

4. 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

5. KPC
Unit 2
Unit 3
Unstabilised Oil
Sour Gas to Re-injection
Unstabilised Oil
65 000 BOEPD
Sour Gas
24 MSM3/day
Orenburg
Stabilised Oil
242 402 BOPD
CPC
Mini
Refinery
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

6.  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

7. PRODUCTION AND INJECTION HISTORY
0
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2011
KBarrelsperday)
Gas Injection
Gas Sales
Liquid Production
PSPA FPSA

8. 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
P2M
P2ME
P2ME2
P2ME3
Proposed Gas
Balancing lines
P2M
P2ME
P2ME2
P2ME3
Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FEED (internal)
VAR 3
FID
Bid & Award LLI
Deliver Line Pipe
Deliver Valves
Detailed Design
Prefabrication & RMS M mod.
Pipeline Construction & Commissioning
Start Up
Gas Balancing
2011 2012 20152013 2014

9. 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)

10. 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
Evaluation
VAR 1
Pre FEED
VAR 2
FEED (internal)
VAR 3
FID
Execution
Production
2011 2012 2013 2014
Unit 2 Gas Injection Upgrade Project
2015 2016 2017
Unit 2
Additional trunk line

11. 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 Run
Mobilise Project Team
Concept Studies
VAR 2
FEED
Tender & Award EPC
VAR 3
FID
Execution
Start Up
2011 2012 2016
KPC Gas Debottlenecking Project
2014 2015 20172013

12. 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

13. 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%

14. 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

15. 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

16. KPO NATIONALIZATION PROGRAMME (2009-2018)
Cat Description 31 Jan, 2012 Target 2013 (program) Dec, 2018
1 Management 69% 60% 70%
2 Professional staff and Supervisors 95% 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

17. THANK YOU!