KMG EP completes the sale of its interest in KPI

Press-release

KMG EP completes the sale of itsinterest in the LLP «Kazakhstan Petrochemical Industries Inc.»

Astana, 19 April 2012. JSC KazMunaiGas Exploration Production («KMG EP» or «the Company») announces the closing of the transaction to sell a 51% stake in the LLP «Kazakhstan Petrochemical Industries Inc.» («KPI») that operates the construction of the first integrated petrochemical complex in Atyrau region to the LLP «United Chemical Company», which has managed the KMG EP's stake in the project since 2009. The deal was approved by the Board of Directors of KMG EP on 2 March 2012.

The value of the transaction is 4.86bn tenge (USD 33.5m (based on the exchange rate on the day of payment). As investments were previously fully impaired , KMG EP will receive net gain of 4.86bn tenge as a result of this transaction. No tax consequences as initial investment was equal to the amount of sale.

The sale of the stake in KPI is a part of the Company's Strategy 2020, which includes divestment of non-core assets, including those related to petrochemicals.

NOTES TO EDITORS

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2011 was 12.3mt (an average of 250 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The total volume of proved and probable reserves, as at the end of 2011 was 226mt (1.7bn bbl), including shares in the associates of about 2.1 bn barrels. 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 December 2011 and "GAMMA-6" rating in September 2011.

LLP "United Chemical Company" is a member of group of companies "National Wealth Fund «Samruk-Kazyna" JSC. It was established in response to the request of the President of the Republic of Kazakhstan. The main task of the Partnership is to contribute to the development of chemical industry in Kazakhstan.

For further details please contact us at:

KMG EP. Public Relations (+7 7172 97 7908)

Elena Pak

E-mail: [email protected]

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

Asel Kaliyeva

E-mail: [email protected]

Pelham Bell Pottinger (+44 207 861 3147)

Elena Dobson

E-mail: [email protected]

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.