1. “National Company “KazMunayGas”: “Kazakhstan as the Main Driver of Oil Production Growth in Eurasia: Key Projects, Prospects And Challenges”
Astana, October 2, 2012

2. Energy Market Situation
The relationship between world economic condition and oil prices*
Source: International Monetary Fund,
International Energy Agency, Citi Research
Growth in oil demand
Growth in world GDP
in %
Positive dynamics
IEA forecast for 2012
After the economic shocks
Indicators of different years
Source: BP Energy Outlook 2030
Approximation of energy intensity and a share of dominant types of fuel up to 2030 (forecast)
Energy intensity
Shares of dominant types of fuel
Tons per thousand USD dollars
China
USA
Rest of the world
India
Oil
Coal
Gas
Water sources
Nuclear power
Renewables
* If oil prices remain relatively stable and the world economic growth makes up 2%, then the hydrocarbon demand will have linear correlation with world GDP. 1

3. Development Strategy until 2020
The Republic of Kazakhstan: Key-takeaways, New Challenges and Development Goals
Development Strategy until 2020
GDP growth – no less than 30%
National Fund’s assets – no less than 30% of GDP
Share of the small and medium enterprises in the GDP - 40%
Growth of investments in non-resource sector of the economy - 30%
Population mln. people
Life expectancy – over 72 year
growth against the proceeding year; GDP in billion US dollars
Foreign Direct Investments (mln.US dollars) 2

4. Oil and Gas Industry of the Republic of Kazakhstan
World proved crude oil reserves, bln.barrels
Kazakhstan holds 9th place in the world with regard to the proved oil reserves, with the 39,8 bln. barrels of oil
Kazakhstan is the 2nd largest oil producer among the CIS countries
Natural gas reserves make up 3 trln.cub.m , which is 1% of world’s gas reserves.
Oil production in Kazakhstan is 1.76 mln.bbl/day or about 80 bln.tons
Gas production in Kazakhstan makes up 25 bln.cub.m.
Oil production is expected to Increase by 60% by 2020
Caspian Sea Shelf Projects should become the main driver of oil production growth in Kazakhstan
By 2035 the Caspian Sea region will provide about 9% of the world crude oil demand
Annual crude oil production in Kazakhstan, mln. tons (with forecast to 2020)
72bln. US dollars
Investments in oil and gas sector
21%
of oil sector in Kazakhstan’s GDP 3

5. Layout of oil pipelines
JSC NC "KazMunayGas" in Kazakhstan's Oil-and-Gas Sector
KazMunayGas is Kazakhstan's national operator for exploration, production, refining and transportation of hydrocarbons, representing the state in Kazakhstan's oil-and-gas sector. 100 percent of the company's shares are owned by the SWF “Samruk-Kazyna” JSC.
Key figures Share on the RoK's market, %
Production of crude oil and gas condensate 21,1 mln. tons 26,4 %
Gas production 4,9 bln. m3 13,1 %
Oil refining 15,3 mln. tons 83,2 %
Pipeline oil transportation 66,9 mln. tons 77,1 %
Pipeline natural gas transportation 110,6 bln. m3 95,7 %
Layout of oil pipelines
Layout of gas pipelines
Central Asia - Centre
Bukhara - Ural
Orenburg - Novopskov
BGR - Almaty
Kazakhstan-China 4

6. The Development Strategy of KazMunayGas1
Oil and gas exploration and production
Growth of hydrocarbon reserves and crude oil and gas production 2
Oil transportation
Diversification of oil export routes, integration of oil transportation systems and ensuring a stable transportation 3
Oil refining & Oil and oil products marketing
Oil refining technological development, ensuring domestic market and development of petro chemistry 4
Service and innovative technological sector
Creation of competitive services, achieving the level of world oil and gas companies 5
Gas transportation and marketing
Development of Kazakhstan gas market, transit potential and satisfaction of the domestic market requirements 6
Managerial improvement
Financial sustainability and debt management, development and improvement of corporate governance, formation of target capital structure, implementation of personnel policy and enhancing social activity 5

7. Strategic Targets of JSC NC “KazMunayGas” for 2022
Description
Unit
Plan for 2012
2015
2022
(Long-term strategy)
Growth 2022/2012,
( %)
Oil and gas condensate reserves
mln. tons
779,0
817,0
1 413
1,8 times
Volume of oil and gas condensate
21,9
24,0
35,4
1,6 times
Volume of oil refining and gas condensate
16,4
19,0
115,9
ROACE %
9,3
> 10
>15
by 5,7 percentage point
EBITDA margin
13,3
> 16
> 18
by 4,7 percentage point 6

8. Short-term plan of geological exploration (2012-2015)
Geological Exploration Performance
Short-term plan of geological exploration ( )
556 bln. KZT
Geological exploration costs
Total costs for geological exploration during – 2016 will make up 556 bln. KZT
4 650 lin. km
2D Seismic survey
2D seismic survey to the extent of lin. km
is scheduled to be held for identifying new structures
km2
3D Seismic survey
3D seismic survey to the extent of sq.km is scheduled to be held for specifying the composition of the identified structures
435 wells
Prospecting and exploratory drilling 
435 exploration and appraisal wells are planned to be drilled
From 2015 the consolidated increment in raw hydrocarbons reserves of KMG will be ensured through geological exploration. 7

9. Exploration and Production Innovation Policy
Improving the efficiency of geological exploration
(muiltifocusing, digital geological modeling)
Increment in the consolidated residual recoverable oil reserves by more than twice through geological exploration based on innovative technologies by 2022
Improvement of development efficiency of the fields with depleted deposit and challenged reserves in order to increase the oil recovery factor.
Ground tests in natural field conditions
Development and transfer of innovative technologies
Large-scale introduction of innovation on a turnkey basis in existing fields
Laboratory test
15 low-margin deposits of JSC KMG E&P,
remaining recoverable reserves 6570 thousand tons
ADVANCED TECHNOLOGIES
Nonsteady (cyclic) waterflooding with reverse filtration flow
Polymer-gel system injection
Alternating injection of oil and water
Sidetracking
Horizontal wells and horizontally branched wells
Innovative effect
Production tests of research and technology and development activities by Kazakh scientists and teams in the field, testing of new domestic equipment and technologies
Introduction and experience of application of the new technologies by world service companies
Introduction of new technologies in the existing fields 8

10. Kazakhstan Sector of Caspian Sea North-Caspian Project
Geological Prospecting Projects of JSC NC “KazMunayGas”
Kazakhstan Sector of Caspian Sea
Onshore
Zhambay
(50%)
North-Caspian Project
(16,81%) - 1 2 3 4 5 6 7
Zhambyl
(73%)
Satpayev
(75%)
Kurmangazy
(50%)
Zhemchujiny
(25%)
Жамбыл
Khvalynskoye
(25%)
Project N
(51%)
(50%)
Tsentralnaya
(50%)
1 - Liman
2 - Uzen-Karamandybys
3 - Karaton-Sarkamys
4 - R-9
5 - Taysogan
6 - Teresken
7 -Temir
Центральная 9

11. Diversification of Oil Transportation Routes
Over 20 years of independence of the Republic of Kazakhstan:
volume of oil export increased from 13 to 71 mln.tons annually
approximately km of oil pipelines constructed
pipeline export capacities increased from 10 to 58 mln.tons annually |
“Caspian Oil Pipeline” Pipeline Consortium
In April 1996 Agreement between Kazakhstan, Russia, Oman and International Oil Consortium on construction of CPC Pipeline was concluded.
Oil pipeline length:1510 km
Commissioned: 2001
July – commencement of construction works on the CPC Expansion Project (up to 67 mln.tons of which 52,5 mln.tons of oil from the Republic of Kazakhstan)
Existing routes
Planned routes
Kazakhstan-China Oil Pipeline
Implementation of the Kazakhstan-China Oil Pipeline Expansion Project (Stage II) will allow increasing the output capacity up to 20 mln.tn of oil a year.
Oil transportation, mln.tn
CPC Oil Pipeline ,2
“Atyrau-Samara” Oil Pipeline 15,4
Kazakhstan-China Oil Pipeline 10,9
Kazakhstan Caspian Transportation System Project
The need in the KCTS export capacities will arise by the moment Phase II of the Kashagan field development is implemented 10

12. Gas-main Pipelines of Kazakhstan
Russian Federation
Uzbekistan
Kyrgyzstan
Turkmenistan
China 11

13. Reconstruction and Modernization of Refineries in Kazakhstan
Implementation of the State Program on Industrial and Innovative Development Enforcement and the Program on Development of the Petroleum Industry in the Republic of Kazakhstan for will allow:
increasing an average integrity index of the Kazakhstan refineries up to 10,2 global rate
increasing the depth of oil refining up to 89%
enhancing the quality of motor fuels to Euro-4,5 standards
Investment projects:
“Construction of Aromatic Hydrocarbon Production Complex at Atyrau Refinery”
“Construction of Deep Oil Processing Complex at Atyrau Refinery”
“Reconstruction and Modernization of Pavlodar Refinery”
“Reconstruction and Modernization of PKOP Refinery (Shymkent Refinery)
«Road Bitumen Production at Aktau Plastic Mass Plant”
Expected Results:
thou,.tons
Description
Fact
2011
After reconstruction
2016
Deviation (+/-) %
Oil refining
13 724
19 000
+ 38
Gasoline
2 764
6 774
2,5 times
Jet fuel
388
957
+ 569
Diesel fuel
4 093
5 875
+1 782
+ 44
Mazut
3 403
1 484 57
Refining depth
67%
89%
+ 22
Quality of oil products
Euro - 2
Euro – 4,5 12

14. Kazakh Content (КС)
KC in procurement activities of KMG Group for the year 2011
KC in major petroleum projects for the year 2011
Total volume of procurement
Kazakh content
80%
Total procurement level
Kazakhstani content
(USD mln.)
37%
62%
20%
63%
38%
поменять цифры по всем компаниям
Import
Kazakh
Content
Total, GWS Goods Works Services 13

15. Service Sector- Investment Projects
Construction of the North-Caspian Environmental Response Base (NCERB)
Purpose: to ensure oil spill response in case of Level 1 and 2, delivery of assistance in case of emergency situation, evacuation and rescue of people, deployment of equipment in case of Level 3 oil spill
Deadline: 2012
Cost: 12,6 bln.tenge
Location: Damba settlement, Atyrau oblast
Status: NCERB is under construction.
Месторождение
Кашаган
р.Урал
СКЭБР
Shipyard/dry dock construction
Purpose: development of the shipbuilding industry in the Republic of Kazakhstan
Deadline: 2013 – 2016
Cost: mln.tenge
Location: Kuryk settlement, Mangistau oblast
Status: feasibility study package produced, state expert review is carried out
Gas turbine station construction
Purpose: liquidation of energy emergency in the West –Kazakhstan oblast, security of RK energy supply
Deadline : (Phase 1); (Phase 2)
Cost: mln.tenge
Location: West-Kazakhstan oblast
Status: feasibility study package produced, state expert review is carried out 14

16. Service Sector – Innovative Cluster
Research study and development
Experimental-industrial Studies
Industrial Engineering
Promotion of finished commodity to the market
JSC “KBTU":
Institute of Chemical Sciences named after Bekturov A.B.
Institute of Organic Catalysis and Electrochemistry named after Sokolsky D.V.
JSC “Kazakh Institute of Oil and Gas”:
Research-and-Development Center in the “Information Technology Park” SEZ
Polygon based on low-profit oil fields of JSC “Exploration and Production “KazMunayGas”
Special Laboratory JSC “Kazakh Institute of Oil and Gas” in the “Information Technology Park” SEZ
Incorporation in full-scale production at domestic enterprises
Major petroleum projects:
TCO, KPO, NCP etc.
Export
Полигон
СЗМС
Innovative projects on the territory of the “Information Technology Park” SEZ
Завод по ремонту
малых судов
Creation of a showpiece complex using the latest results in the sphere of innovative technologies.
Development of domestic research-and-development as well as design and experimental in the petroleum industry
Researches and developments in the sphere of high-performance computing, automation, production processes, IT software application for petroleum and other fields
Источники информации:
1. Программа по развитию нефтегазового сектора в РК на годы, утвержденная постановлением Правительства РК от 18 октября 2010 г. №1072.
2. АО «Информационно-аналитический центр» при Министерстве нефти и газа Республики Казахстан.
Завод буровых растворов
Implemented by:
Students: 2000
ITP SEZ KIOG Research and Development Center
KBTU Institute of Information Technologies
KBTU Petroleum Engineering Institute 15

17. JSC “National Company “KazMunayGas”
JSC “National Company “KazMunayGas”
The Republic of Kazakhstan, , Astana, Kabanbai-batyr str., 22
tel.: +7 (7172)
fax: +7 (7172) , 16