KMG EP 3Q13 Operating Results

PRESS-RELEASE

Operating results for the first nine months of 2013

Astana, 23 October 2013. JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company") announces its operating results for the first nine months of 2013.

KMG EP produced 9,228 thousand tonnes of crude oil (250kbopd), including the Company's stakes in Kazgermunai (KGM), CCEL (CCEL) and PetroKazakhstan Inc. (PKI), which is 120 thousand tonnes or 1% more than in the same period of 2012.

Ozenmunaigas JSC (OMG) produced 3,873 thousand tonnes (104kbopd), an increase of 5% over the same period of 2012. Embamunaigas JSC (EMG) produced 2,124 thousand tonnes (57kbopd), which is 1% more than in the same period of 2012. The total volume of oil produced at OMG and EMG in the first nine months of 2013 is 5,997 thousand tonnes (162kbopd), which is a 4% increase over the same period of 2012.

The Company successfully increased the average production rate at OMG by more than 1,000 tonnes per day from 13,467 tonnes per day in October 2012 to 14,615 tonnes per day in October 2013. The Company is effectively accomplishing its objective of stabilizing average production levels at OMG.

The 2013 production plan at the Company's core assets (OMG and EMG) is maintained at the planned level of 8.1 million tonnes (164kbopd) but the Company realises that it will continue to face challenges in production at Uzen.

The Company's share in production from KGM, CCEL and PKI for the nine months of 2013 amounted to 3,230 thousand tonnes of crude oil (88kbopd), which is 3% less than in the same period of 2012, mainly due to a decline of production at PKI by 6% due to a natural decline of production. It is expected that both CCEL and KGM will achieve initial plans of 1.0 million tonnes (19kbopd) and 1.5 million tonnes (32kbopd), respectively in 2013.

In the first nine months of 2013 the Company's combined export sales from OMG and EMG were 4,482 thousand tonnes (119kbopd), or 74% of the total sales volume from core assets. Domestic sales amounted to 1,535 thousand tonnes (41kbopd), or 26% of total sales volume. The Company expects that domestic sales from core assets in 2013 will amount to 2.0 million tonnes.

The Company's share in the sales from KGM, CCEL and PKI was 3,217 thousand tonnes of crude oil (89kbopd), including 2,841 thousand tonnes (79kbopd), or 88% supplied to export markets.

The Company's share in the Proved plus Probable (2P) reserves of KGM, CCEL and PKI as at the end of 2012 amounted to 56 million tonnes (402 million barrels) of oil or 27% of the Company's consolidated reserves. This compares with 59 million tonnes (422 million barrels) or 21% of the Company's total reserves as at the end of 2011. The reserves assessment of OMG and EMG as at 31 December 2012 was prepared by Miller and Lents Ltd and as at 31 December 2011 - by Gaffney, Cline & Associates.

NOTES TO EDITORS

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2012 was 12.2mt (an average of 247kbopd) 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 2012 was 204 mt (1.5bn bbl), out of which 148 mt (1.1bn bbl) relates to Ozenmunaigas and Embamunaigas. 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. The International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BBB-" corporate credit rating in May 2013.

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 7915)

Yelena Pak

e-mail: [email protected] 

Bell Pottinger Pelham (+44(0)207 861 3147)

Elena Dobson

email: edobson@bell-pottinger.com

Forward-looking statements

This 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.