1. TenizService LLP Company Overview
(for Western Kazakhstan Investment Forum: expanding production and development)
Aktau, 2012

2. TENIZSERVICE LLP
TenizService LLP is subsidiary company of KazMunaiGas NC JSC, established in 2003 with the aim to develop coastal infrastructure as its indicated in the State Program of oilDevelopment of Kazakhstan Sector of Caspian Sea (Decree of RoK President # )
Main activities of the company are related to construction and exploitation of offshore operations support infrastructure
Kashagan
Kalamkas
Bautino
Aktau
Kuryk
TenizService established number of infrastructure facilities in Bautino.
Results of TS activity were highly rated by the President of the State during his visit in 2008.

3. TENIZSERVICE’s ACTIVITIES
Currently TenizService LLP (TS) is stable growing company with well established and proven reputation.
Since its establishment in 2003, TS, based by the recognized international quality and safety standards, has successfully implemented a number of onshore infrastructure development projects, including, such projects as:
Construction of Offshore Operations Support Base,
Rock Loading Jetty,
Marine Fueling Station,
Fabrication Site,
Waste Management Facility for Industrial and Drilling Wastes,
Power Line,
Hotel in Bautino,
Establishment of “Kaz M-I”, a first high-technology joint venture, with MI SWACO, a leading drilling mud company, etc.
HSE Report  hours no accidents in 2011.
TenizService is an owner of 627 hectares of costal land line in Bautino for existing facility, and 725 hectares of coastal land line in Kuryk for future development.

4. NATIONAL WELFARE FUND SAMRUK-KAZYNA
COMPANIES GROUP
NATIONAL WELFARE FUND
SAMRUK-KAZYNA
National railway company Kazakhstan temir zholy
National Atomic Company Kazatomprom
Kazakhstan Electricity Grid Operating Company
KEGOC
National company KazMunaiGas
Kazakhtelecom
KazPost
Other companies
Gas transportation and marketing
Refining, petrochemistry and marketing
Oil and gas upstream
Oil
transportation
Services projects
TenizService LLP
Above 500 affiliated companies
Share of National Welfare Fund "Samruk Kazyna“ GDP is 56% out of total KZ GDP. The share of NC "KMG“ GDP is 11% out of total KZ GDP.

5. ADVANTAGES OF TS AS PART OF KMG
National company KMG
Oil and gas upstream
Oil
transportation
Gas transportation and marketing
Refining, petrochemistry and marketing
Services projects
TenizService LLP
(49 % KMG)
single source*
PSA (State body)
KPO
TCO
* Single source is an option of “bid free” procurement inside of KMG group companies in accordance to procurement rules of KMG.
KMG group company
(over 50% of KMG shares)
(over 25% of KMG shares)
NO BID
Authorities of PSA:
Approval of Shortlists;
Approval of ITT;
Approval of bid results.
All Contracts above $20 mln. should be approved by PSA, otherwise costs are not subject to reimbursement.
NCPOC
TCO
KEY FACTORS:
TenizService is a key company in Service Division of KMG;
TenizService’s activity is strongly supported by KMG, PSA and relevant State Authorities;
TenizService has already implemented a number of projects and nowadays successfully operates a different coastal infrastructure.

6. THE ROLE OF LOCAL CONTENT IN THE DEVELOPMENT OF SERVICE BUSINESS IN THE OIL AND GAS INDUSTRY
Obtaining contract under the auspices of the local content
The possibility of exposure by purchasing services and works from a single source
The possibility of obtaining long-term contract in the KMG group of companies for a period of 3-5 years.
Conditional price drop for Kazakhstan provider of 0.1% for every 1% of local content in group of KMG companies, max 20%
Form of appropriation
Conditional discount
There is no possibility of obtaining a contract from a single source
If company wins the tender, the implementation of the contract maximum 1 year
The absence of any benefits when participating in tenders
Contract
Inclusion of projects in the State. FIID program, receiving government support and funding from fund DAMU on conditional discount
Lack of incentives and government support, when attracting financing
Path1: On the auspices of the local content
(Rules of procurement of Samruk-Kazyna, KMG, Development Programme Local Content)
REGULATORY
LEGAL BASIS
Obtaining contracts based on market conditions
Path2: Overall market conditions

7. BUSINESS AREAS INTERESTING FOR TENIZSERVICE
Offshore
Coastal infrastructure
Onshore
TenizService
SUBSEA:
Well heads
Preventers
Drilling
Pipelines
JACK-UP DRILLING RIG:
Assembly
Operation
MARINE CONSTRUCTION:
Dredging
Artificial islands
COASTAL INFRUSTRUCTURE:
Ship repair/building
Fabrication yard
Waste management
OCTG and
drilling pipelines
Base management
REFINERY PLANTS:
Design
Construction
Maintenance
OTHER:
Training
Consulting
Subsea
KAZ M-I
Mud plant
Drilling, completion & drill-In fluids
Solids Control equipment
Full range of waste management technologies
Well productivity tools (downhole cleaning tools)
Production chemicals
DRILLING:
Stimulation of production
Well heading
Preventers
Drilling
Well repair
Bits
TS`s areas of interests for JV creation
Activities covered by Joint Venture

8. “KAZ M-I” JOINT VENTURE
On 19 November 2008 TenizService established a Joint Venture with M-I Drilling Fluids International B.V. (MI SWACO) – «Kaz M-I» LLP.
JV Purpose - Provision of pioneering technologies in:
Drilling, Completion & Drill-In fluids
Solids Control equipment
Full range of Waste Management technologies
Well Productivity tools (Downhole Cleaning tools)
Production chemicals
Liquid Mud Plant
In October 2009 MI SWACO began construction of the Liquid Mud Plant on the territory of TenizService Support Base.
Productive capacity of drilling mud production - 84 000 tons/year .
End of construction – 1 quarter of 2012.
Project cost – $ 15 mln.

9. AUTOMATED TANK CLEANING
TS provides the following services:
Automated Tank cleaning using remote control equipment and tank sweeps
Use of specialized sludge guns with hot or cold tap capacity
Separation, transportation and utilization of sludge
Oil recovery of needed.
Advantages of automated Tank Cleaning system:
Safety (ATEX)
Efficiency
Cost effective
Less time
Current situation:
TS is cleaning KazTransOil’s m3 reservoir in Aktau, the following step is signing long-term contract.
Negotiations are held with KPO, TCO, MMG, etc.
TS will create JV with partner.
TS participating in KPO tender

10. OFFSHORE WASTE MANAGEMENT EQUIPMENT
TS is the one of few companies in Kazakhstan, which provides equipment for offshore waste management (offhore skips, drilling cutting boxes - DCB, offshore cargo baskets , minicontainers, iso tanks, etc).
TenzService  DCB
Specification
Other DCB
3.55
Volume (m3)
3.1
8400
Max. Payload (kg)
6000
1600
Tare (kg)
1500
10000
Gross Weight (kg)
7500
2280
Length (mm)
2400
1950
Width (mm)
1700
1250
Height (mm)
1370
Volume of TS DCB - 13% more than Other DCB,
Therefore 13% less lifting operations and logistics
Current situation:
TS has contract with Zhambyl Petroleum
TS has mobilized equipment from Baku and UK to Bautino.
TS has intention to provide equipment for all offshore operators,.

11. PROVISION OF DRILL BITS, CENTRALIZERS
Joint Venture
Project Managing
Technology,
Training,
Know-how
Investment
TERCEL
Personnel and local content
Workshop in Special Economic Zone Aktau Sea port for assembling of products:
Tax references – 0 %,
Custom references – 0%,
TENIZSERICE
Administration and cooperation with state bodies
TenizService
Tercel
Oil and gas companies
Current situation:
TS provided 2 Roller Cone bits to AktauNefteService for testing in Zhetybau oilfield. Technical Results of testing are very successful.
TS and Tercel are making marketing research.
TS and Tercel are preparing documents to approve creation of JV in KMG.

12. WASTE MANAGEMENT SERVICES
One of the main perspective projects to be realized by TenizService is waste management services for all type of waste coming form oilfields.
Reasons
TS advantages
no any complete waste recycling, treatment units in Mangystau region
increasing of offshore oil operations
current wrong WM in region
waste management law strengthening
TS existing Polygon hectares
Additional 40 ha reserved for Polygon extension
TS Base –Polygon road do not cross village, settlements
Experience in waste management
Direct knowledge of situation on waste management in Mangystau
TS has Designed Project for WM units
segregation
transportation
management
incineration
recycling
treatment

13. FABRICATION YARD Joint Venture Oil and gas companies
Project Managing
Technology, training, know-how
TECHNIP
Personnel and local content
Administration and cooperation with state bodies
TENIZSERICE
Developed Infrastructure in Bautino
- 51% (Fabrication site)
PARTNER
At this moment TS is holding negotiations with
potential partners - Technip, Hyundai Heavy Industries,
Heerema, etc
Oil and gas companies
Fabrication Site is a reclaimed land plot on the Eastern coast of Tupkaragan Bay.
Total area: 20 hectares;
Quay wall length: 667 m;
Preliminary dates of yard construction are
Initially yard capacity will be 6000 tons/year, with a subsequent increase up to 10 000 tons/year.
Fabrication Site

14. NORTH CASPIAN ENVIRONMENTAL OIL SPILL RESPONSE BASE
Project: North Caspian Environmental Oil Spill Response Base
Purpose of the project: Provision of services for emergency oil spill response within the Northern part of the Kazakhstani Sector of the Caspian sea.
Location: Atyrau Oblast, Primorsky Channel, south of Damba Village.
Implementation period: 2009 – 2012.
Project value: ~85 mln. USD (final value is to be defined on the basis of the design and estimation documentation).
Finance source: KazMunaiGas and/or loans.
Main facilities:
Berth and mooring pond;
Buildings for OSR equipment storage;
Buildings and structures for Air-Cushion Ships Maintenance (ACSM);
Building of the Fauna Rehabilitation Center;
Building of the Ecological and Meteorological Monitoring Center;
Auxiliary Buildings and Structures;
Flight deck.

15. OIL SPILL RESPONSE SERVICES
TS is implementing project North Caspian Environmental Oil Spill Response Base in Atyrau region. All construction-and-assembling operations are being make with advanced pace and project will be done in time.
TS – one of few offshore base management companies
Own several offshore infrastructure objects
Experience in base management
Own high-trained local personnel
High international standards
TS has experience in provision of OSR services in partnership with MEKE Kazakhstan
OSR tier-1,2
OSR modeling
Oil spill sensitive mapping
IMO standard trained local personnel
Previous contracts: N Operating Company, TenizBurgylau.
3 oil spills were responded during N project drilling
OSR exercises were held with NOC and state authorities
TS – company with high abilities to provide full cycle of OSR services.

16. KURYK: PERSPECTIVE FACILITIES OVERVIEW
In the future, when the main hubs of coastal infrastructure such as Atyrau, Bautino, and Aktau will reach their capacity, TenizService intends to develop subsequent projects aimed to increase coastal infrastructure in the Kuryk area.
Existing facilities:
ERSAI Fabrication yard.
Facilities depending on commencement of Kashagan Phase II.
Pipe coating plant.
Oil loading terminal.
Ship building yard.
Fabrication yard.
Facilities depending on commencement of oil production in the South Caspian
Dredging base.
Living camp.
Vaporizer pond
Environmental monitoring center
Water-desalinating plant.
Fleet supporting base.
Offshore operations support base.
Industrial logistics base.
Waste management facility
Helipad.
Compressor station.
Oil and gas preparation station
Emergency response base.
Liquefied gas station.

17. Thank you for your attention!