KMG EP Operating Results 2014FY

KMG EP Announces Operating Results for 2014

Astana, 27 January 2015. JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company") today announces its full year operating results for 2014.

Overall, in 2014 KMG EP, including its stakes in Kazgermunai (KGM), CCEL (CCEL) and PetroKazakhstan Inc. (PKI), produced 12,328 thousand tonnes of crude oil (250kbopd), which is 60,000 tonnes (less than 1%) lower compared to 2013.

Ozenmunaigas JSC and Embamunaigas JSC

In 2014, Ozenmunaigas JSC (OMG) produced 5,328 thousand tonnes (107kbopd), an increase of 2% compared to 2013. Embamunaigas JSC (EMG) produced 2,823 thousand tonnes (57kbopd), slightly less than was produced in 2013. The total volume of oil OMG and EMG produced in 2014 was 8,151 thousand tonnes (164kbopd), which is a 1% increase compared to production in 2013.

In 2014, the Company's combined export sales from OMG and EMG were 5,571 thousand tonnes (110kbopd), or 69% of the total sales volume. Domestic sales amounted to 1,967 thousand tonnes (39kbopd), or 25% of total sales volume. Furthermore, 447 thousand tonnes of crude oil (9 kbopd) were shipped in September - December 2014 to Russia to fulfill obligations under the counter-oil supply agreement between the Government of Kazakhstan and the Russian Government. Sales volumes shipped to Russia are specified by the Ministry of Energy of Kazakhstan and so far the Company has not received the approved schedule for deliveries to Russia in 2015.

Joint ventures and associate

The Company's share in production from CCEL, KGM, and PKI in 2014 amounted to 4,177 thousand tonnes of crude oil (85kbopd), 4% lower than in 2013, mainly due to 8% and 3% lower production at PKI and KGM, respectively, due to the natural decline of production.

The Company's share in the sales from CCEL, KGM, and PKI was 4,167 thousand tonnes of crude oil (85kbopd), including 1,944 thousand tonnes (40kbopd) supplied to export markets, or 47% of total sales volume.

Notes to editors

As at the end of 2014, KMG EP is among the top three Kazakh oil producers. The overall production in 2014 was 12.3 million tonnes (250 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 Ural Oil and Gas (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 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 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.