CPC - International Consortium General Director, CPC-R N. N. Gorban

CPC Oil Pipeline Project Background UKRAINE RUSSIA IRAN TURKEY BLACK SEA CHINA KAZAKHSTAN Uzbekistan Turkmenistan Kyrgyzstan Atyrau Aktau Novorossiysk Makhachkala Neka Odessa Kumkol Karachaganak Tengiz Atasu Astana Constantsa Atyrau-Samara Samara

CPC Shareholders Oryx Caspian Pipeline Ltd Russia 1.75% 24% (OAO AK Transneft, Trustee) Kazakhstan Pipeline Ventures 1.75% CPC Company 7% (OAO AK Transneft, Trustee) Eni International N.A. N.V. S.AR.L. 2% BG Overseas Holdings Ltd 2% Rosneft-Shell Caspian Ventures Limited 7.5% KMG 19% Mobil Caspian Pipeline Company 7.5% Chevron Caspian Pipeline Consortium Company 15% Lukarco B.V. 12.5%

CPC System in 2001-2011

CPC Oil Flow Structure, MMT (on the average based on the 2012-2016 pumping data)

Volumes of Oil Transportation Via CPC Pipeline System

CPC System Development December 1996 - CPC Shareholders Agreement signed; November 2000 - Golden Weld made; October 2001 - first tanker loaded at Marine Terminal; 2003 – all construction work completed; December 2010 – Amendment Agreement to the 1996 CPC Shareholders Agreement signed. CPC Shareholders passed the Final Investment Decision on Expansion Project of CPC pipeline system throughput capacity from 28.2 to 67 MMTA. Expansion Project implementation launched;

CPC Expansion Project Concept of the Project – CPC system throughput capacity increase from 28 to 67 MMTA; Expansion is necessitated by growing crude oil production and delivery from Tengiz and Karachaganak oil fields in Kazakhstan, and also new Caspian fields: Kashagan; Filanovsky and Korchagin; Expansion completion target date – Q4 2017; Approved project budget is $5.4 B; Expansion Project implementation will allow to increase the revenue to $2+ B per annum. The Project is financed using the Consortium’s own funds (profit from base business, Shareholder debt repayment deferral).

Key Expansion Parameters Description Original Post-Expansion Approximate Annual Shipment Volume 28 MTA 67 MTA MT Tank Farm (100,000 ton tanks) Aggregated capacity (4) 400,000 tons (10) 1 MMT SPM 2 3 PS 5 15

CPC Pipeline Route Map All Expansion Phases PS-8 PS-7 SPM RVSPK (4,6,8) RVSPK (7,9,10) Kropotkinskaya PS PS-5 PS-4 PS-3 Astrakhanskaya PS PS-2 А-PS-4А А-PS-5А А-PS-3А Atyrau PS Komsomolskaya PS А-PS-4 Provide transparent cost structure Demonstrate realistic budget needs Outline implications of USD 140 mln approved budget ------------------ Assess short-term choices Prioritize short- and long-term profitability Tengiz PS Phase 1 with throughput increase up to 35 MMTA – upgrading of five existing PSs, construction of three tanks at Marine Terminal, single point mooring and replacement of pipeline section KP 116-204; Phase 2 with throughput increase up to 48 MMTA – construction of five new PSs; Phase 3 with throughput increase up to 67 MMTA (using DRA 76 MMTA) – construction of five new PSs and three tanks at Marine Terminal. 10

Expansion Project Facilities in Replacement of 88 km of pipeline Kazakhstan and Russia Kropotkin PS PSA-4А Turbine units PS-4 RVS tanks - 300 cu m Atyrau PS RVSPK tanks – 20,000 cu m Replacement of 88 km of pipeline PSA-4 Cable racks

Expansion Project Facilities at the Marine Terminal 6 new tanks, 100,000 tons each Third Single Point Mooring 12

Объекты 3-й фазы по Морскому терминалу Объекты 3-й фазы по Морскому терминалу Резервуары №7,9,10 (подрядчик – ЗАО «ТРЕСТ «Коксохиммонтаж»): Работы завершены в октябре 2016, объект введен в эксплуатацию. 13 13

CPC Drills учения

2017 Outlook Oil Movement: total expected 58,5 MTA, including: 53 MTA – Kazakhstan resources, 5,5 MTA – Russian resources. Complete Expansion Project construction & installation (Q4 2017) within the Shareholder-approved budget. Ramp up to 67 MTA design capacity by the end of 2017

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