Kazakhstan - 3% of the world's total oil reserves - among the top 15 countries in the world (essential oil reserves)

62% of the country is occupied by oil and gas areas. There are 172 oil fields, of which more than 80 are under development. More than 90% of oil reserves are concentrated in the 15 largest oil fields Tengiz Kashagan Karachaganak Uzen, Zhetybai Zhanazhol Kalamkas Kenkiyak Karazhanbas Kumkol North Buzachi Alibekmola Central and Eastern Prorva Kenbai Korolevskoye

Six provinces with oil in Kazakhstan: Aktobe, Atyrau, West Kazakhstan, Karaganda, Kyzylorda and Mangystau. About 70% of the hydrocarbon reserves are concentrated in western Kazakhstan. The Atyrau province holds claim to the most significant amount of oil fields, in which more than 75 fields have commercial reserves of 930 million tonnes. The largest field in the province is Tengiz (with 781.1 million tonnes of initial recoverable reserves). More than half of remaining reserves are concentrated in two fields: Korolevskoye (55.1 million tonnes) and Kenbai (30.9 million tonnes). Mangystau province's territory has been benefited by the discovery of more than 70 fields with commercial recoverable reserves of 725 million tonnes, and 5.6 million tonnes of condensate. Less than half of the fields are in operation. Most of those fields are mature ones, and are difficult to recover. The largest oil fields are Uzen, Zhetybai, Kalamkas, and Karazhanbas. The largest oil field in the West Kazakhstan Province is Karachaganak with recoverable reserves of liquid hydrocarbon feedstock of around 320 million tonnes and over 450 billion cubic meters of natural gas. In September 2005 the discovery of hydrocarbons was announced in the Fedorovsky block near Karachaganak block; oil and gas condensate reserves are estimated to amount to 200 million tonnes. Another promising region in terms of its oil and gas potential is the Aktobe province. Around 25 fields have been discovered there. The most important geological discoveries in this region are the

Zhanazhol group of fields with recoverable oil and condensate reserves amounting to about 170 million tonnes. In 2005, it was announced that a new field Umit was discovered in the central block of the eastern Caspian depression. The most critical for the oil industry in the Kyzylorda and Karaganda provinces is the Kumkol group of fields which is the fifth largest oil and gas area in Kazakhstan. While operating in the area in the summer of 2005 PetroKazakhstan announced the discovery of commercial oil reserves in the licensed Kolzhan area adjacent to the northern boundary of the Kyzylkiya field.

Key figures
Overall, according to the Kazakhstan Ministry of Oil and Gas, proven hydrocarbon reserves, both onshore and offshore, are estimated to amount to 4.8 billion tonnes, or more than 35 billion barrels, while as of 2001 the explored in-place reserves of oil were only 2.9 billion tonnes. Furthermore, according to some experts, there are probably more reserves of oil in fields located in the Kazakh section of the Caspian Sea, which may be over 17 billion tonnes or 124.3 billion barrels. Given the oil and gas reserves as well as the ever-increasing production volumes, in the foreseeable future, Kazakhstan is much likely to remain among top oil producers. According to the Ministry of Oil and Gas, oil production in 2011 amounted to 80.1 million tonnes. Let us put this in perspective, in 1998, oil production was fixed at 25.93 million tonnes. With 39.5 billion cubic meters produced in 2011 Kazakhstan remains a top natural gas producer among the CIS countries. 2,146.9 thousand tonnes of liquefied petroleum gas was produced last year by oil and gas processing companies in Kazakhstan. Domestic consumption of gas was 10.179 billion cubic meters. Refinery throughput at domestic refineries amounted to 13.7 million tonnes, of which gasoline was 2.76 million tonnes; diesel fuel, 4.06 million tonnes; oil, 3.66 million tonnes; jet kerosene, 387.1 thousand tonnes. This being said, according to the KazMunaiGas Refining and Marketing in 2011, the volume of oil refining was 4.47 million tonnes at the Atyrau Refinery, 2.3 million tonnes at the PKOP plant (Shymkent refinery), and to 4.6 million tonnes at the Pavlodar refinery. Kazakhstan exports some crude through pipeline. In 2011, oil exports amounted to 69.61 million tonnes including through the following oil pipelines: Atyrau-Samara, 15.43 million tonnes; CPC, 28.44 million tonnes; Atasu-Alashankou, 10.89 million tonnes. In money terms, oil exports were equal to US$ 55.2 billion, accounting for 62.5% of the total exports of Kazakhstan. The volume of gas exports from Kazakhstan in 2011 amounted to 8.15 billion cubic meters. The volume of international gas transit across Kazakhstan for the same period amounted to 96.67 billion cubic meters, of which: Russia, 62 billion cubic meters; Turkmenistan, 26.5 billion cubic meters; Uzbekistan, 8.2 billion cubic meters. In future, the volume of oil and gas in Kazakhstan is expected to grow significantly. The growth of oil and gas production in Kazakh can be linked to the following three factors. First, it is due to a significant influx of investment. Second, due to favourable world market conditions for crude production. Finally, a large-scale study of the subsoil areas in the Caspian and Aral Seas will contribute to further addition of resources.

According to Oil and Gas Information and Analysis Centre, a subsidiary of Contract Agency, the total number of people involved in the oil and gas industry is 71,336, including 2,431 expats.

OIL COMPANIES IN KAZAKHSTAN: KazMunayGas National Comapny: Corporate Profile - KazMunayGas National Company develops independently its innumerable natural
wealth, and generous resources of hydrocarbons. Although Kazakhstan oil has secular history, the most remarkable events in it have occurred only after gaining the state independence by Kazakhstan. Products / Services Overview - KazMunayGas National Company core activities include: Development and production, Operation of oil and gas field infrastructure, Refining, Transportation and operation of oil-and-gas pipelines, Implementation and marketing, research and development (R&D) in the sphere of oil and gas, Geological-geophysical researches, Design and construction of oil & gas pipelines and petroleum field, infrastructure and Drilling.

Karachaganak Petroleum Operating Company: (KPO) KCO consortium should be running the project until 2038 Corporate Profile - The Karachaganak Venture brings expertise and knowledge from five international
oil & gas companies BG Group, Eni SpA, Chevron, Lukoil and KazMunaiGas. BG Group (29.25
percent), Eni (29.25 percent), Chevron (18 percent), Lukiol (13.5 percent) and KazMunaiGas (10 percent)

In developing the field to date, the Venture has utilised leading, and in some cases pioneering technology. BG Group, together with Eni are joint operators and each hold a 29.25 per cent interest in the venture. Chevron and Lukoil hold respective interests of 18 per cent and 13.5 per cent. National company KazMunaiGas, which entered the Joint Venture from 1st July 2012, holds a 10 per cent interest. Product / Services Overview - Karachaganak production originates deep underground in reservoir approximately 5,000 metres deep. The reservoir contains a vast quantity of oil, condensate, and gas all embedded in a porous rock structure. These hydrocarbons are layered much like a cake with the oil near the bottom of the reservoir in a thin layer, the condensate in a thicker layer on top of the oil and then the gas in the thickest layer at the top of the reservoir.

Tethys Services Kazakhstan: Corporate Profile - Tethys Petroleum Limited (Tethys) is an oil and gas exploration and production
company listed on the Toronto Stock Exchange in Canada (symbol TPL) and the RFCA Exchange in Almaty, Kazakhstan. Tethys is focused on Central Asia and the Caspian Region, with its current projects in Kazakhstan and in Tajikistan. Tethys is producing gas from the Kyzyloi Field in south west Kazakhstan near the Aral Sea. And has had several recent discoveries of additional gas. Tethys believes that this is one of the first dry gas developments in Kazakhstan and Tethys hopes to build on this with further increases in gas production in the area. Tethys believes that there is significant further gas potential and the potential for oil in deeper horizons. Tethys has also recently signed the first Production Sharing Contract (PSC) in Tajikistan for a 35,000 km2 (8.5 million acres) area in the south-west of the country. This area, know as the Afghan-Tajik Basin is an extension of the prolific

Amu Darya basin which produces in nearby Uzbekistan and Turkmenistan. Besides current interests in the proven gas field Kyzyloi and the Akkulka and Greater Akkulka exploration areas, Tethys Petroleum also recently reached agreement to acquire rights to the Aral Vostochniy Exploration Area all in western Kazakhstan. Product / Services Overview - Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan and now Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

Agip KCO Buzachi Operating Ltd. Company KazMunaiGas Exploration Production (KMG EP) Kazneftehim-Kopa KazRosGaz Kurmangazy Petroleum LLP North Caspian Operating Company B.V. (NCOC) Roxi Petroleum Kazakhstan LLC Tengizchevroil (TCO) Company Chevron, 50 percent; KazMunaiGas, 20 percent; ExxonMobil

Kazakhstan Ventures Inc., 25 percent; and LUKArco, 5 percent

Trans Asia Construction

"According to our ministry, the project for future expansion at the Tengiz field, implementation of the third phase of development of the Karachaganak field, the second phase of the Kashagan field development will require a $200 billion investment in the next 13-15 years,"

The third phase (the Karachaganak project - IF-K), in the form it had previously considered, is not valid anymore. As far as I understand, the project will undergo certain modifications. What form it will finally take and if the parties approve it is the issue for further discussion and approval," said the Minister at a press conference in Astana on Wednesday. "We count on significant investment in the development of this project," he said. The Karachaganak project development is split into four stages (phases). The third stage is projected to increase production of liquid hydrocarbons to 15 million tons a year and gas to 38 billion cubic meters a year.

Sauat Mynabev said earlier that KPO would submit the third stage project of Karachaganak after settling mutual claims with Kazakhstan.

Tengiz field expansion: Budget $ 23B; Expected completion mid-2018, submitted data for early bidder list. Prequalification is yet to begin.