Karazhanbasmunai tax reduce

PRESS RELEASE

The Government of Kazakhstan reduces mineral extraction tax rate for Karazhanbasmunai

Astana, 25 June 2014. JSC КаzМunaiGas Exploration Production ("КМG EP" or the "Company") is pleased to announce that the Kazakh Government has included the Karazhanbas oil and gas field (in the Tupkaragan District, Mangystau Province) in the list of marginal, hydrocarbon, high-viscosity, water-flooded and depleted fields. It has been included in this category retrospectively, from 18 June 2014 onwards. The Kazakh Government has set the mineral extraction tax rate for Karazhanbas at 0.5%. Previously it was 9-10%.

Karazhanbasmunai is developing the Karazhanbas field which is equally owned by KazMunaiGas Exploration Production JSC and CITIC Group. The daily output at Karazhanbasmunai is 19,000 bopd. 2P reserves as at the end of 2013 were 374 million barrels.

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.

For further details please contact us at:

KMG EP. Investor Relations (+7 7172 97 5433)

Asel Kaliyeva

e-mail: [email protected]

KMG EP. Public Relations (+7 7172 97 79 08)

Elena Pak

e-mail: [email protected]

Brunswick Group (+44 207 404 5959)

Andrew Mitchell

e-mail: [email protected]

Forward-looking statements

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