Aksay oil and gas field put on stream

Aksay oil and gas field put on stream

Astana, 12 December 2014. KazMunaiGas Exploration Production JSC ("KMG EP" or "Company") announces that JV Kazgermunai's Aksay oil and gas field located in Kyzylorda region has been put on stream.

At the commissioning ceremony, KMG EP Chief Executive Mr Abat Nurseitov said: "Aksay field commissioning will allow Kazgermunai to maintain oil production at current level. Also, additional volumes of gas will allow Kazgermunai to continue fulfilling its social obligations by providing gas to Kyzylorda city."

According to the report of independent consultant Miller and Lents, Ltd. there were 1.5 million tonnes of 2P oil reserves, and 1,626 million cubic meters of gas as at 31 December 2013 in Aksay field. It is preliminarily planned that 114,500 tonnes of oil (2.4 kbopd) and 70 million cubic meters of gas will be produced in 2015 from Aksay field. It is expected that the oil will be supplied in accordance with Kazgermunai's current sales routes and gas will be supplied to domestic market at price set by the government.

The investment into the Aksay field infrastructure development is 9.6 bn Tenge (approximately US$53m). It is expected that additional investment will be made in well construction.

Notes to editors

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2013 was 12.4 million tonnes (an average of 251 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The Company's total consolidated volume of proved and probable reserves including shares in the associates, as at the end of 2013 was 200 million tonnes (1.5 bn bbl), out of which 148.8 million tonnes (1.1 bn bbl) relates to Ozenmunaigas, Embamunaigas, and UOG (Rozhkovskoye field, Fyodorovskiy block). The Company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006.

Aksay structure was discovered in early 1980s, and between 2002 and 2006 the field was in pilot production. After additional exploration in 2011 it was found that Aksay is in fact a gas field with oil fringes. The field is situated to 25 km from Akshabulak field and occupies an area of 296 sq. km. KMG EP acquired 50 percent stake in JV Kazgermunai LLP in 2007. 2P oil reserves of JV Kazgermunai LLP at the end of the end of 2013 amounted to 25.9 million tonnes.

For further details please contact us at:KMG EP. Investor Relations (+7 7172 97 5433)Asel Kaliyevae-mail: [email protected]KMG EP. Public Relations (+7 7172 97 79 08)Elena Pake-mail: [email protected]Brunswick Group (+44 207 404 5959)Andrew Mitchelle-mail: [email protected]Forward-looking statementsThis document includes statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements can be identified by the use of forward-looking terminology including, but not limited to, the terms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''may'', ''target'', ''will'', or ''should'' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include, but are not limited to, statements regarding the Company's intentions, beliefs and statements of current expectations concerning, amongst other things, the Company's results of operations, financial condition, liquidity, prospects, growth, potential acquisitions, strategies and as to the industries in which the Company operates. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of the Company's operations, financial condition and liquidity and the development of the country and the industries in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. The Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements or industry information set out in this document, whether as a result of new information, future events or otherwise. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved.