National Company KazMunayGas and Shell announce KMG joins NCPOC as partner on equal terms with Shell

/KASE, July 23, 10/ - National Company KazMunayGas (Astana), listing on Kazakhstan Stock Exchange (KASE), provided KASE with a press release dated July 23, 2010: Quotation begins On June 15, 2010 JSC National Company "KazMunayGas" ("KMG") signed an agreement with Shell Kazakhstan Development B.V. ("Shell") to join NC Production Operations Company B.V. (NCPOC). In accordance with the agreement KMG will join NCPOC which is responsible for executing production operations within the framework of the North Caspian project as a partner on equal terms with Shell. This transaction is carried out by KMG Kashagan B.V. (100%-owned subsidiary of KMG). As a result of signing this agreement, KMG and Shell have become official partners in managing production operations which allows the partners to join their efforts for timely implementation of the project. Under the terms of the North Caspian project Operating model, NCPOC as an agent company is authorized to manage production operations on behalf of NCOC, the Operator of the North Caspian Production Sharing Agreement. NCPOC was established in 2008 as a 100%-owned subsidiary of Shell. At the time of the establishment it was envisaged that KMG would join NCPOC as a partner on equal terms with Shell later. Presently NCPOC is actively involved in the implementation of the project. KMG's participation in NCPOC demonstrates the national company taking consistent steps to increase its role in the project and the involvement of the Kazakh side in strategic development of the project. National Company KazMunayGas 19 Kabanbay batyr str., Astana, Kazakhstan, 010000 tel. +7 (7172) 976340, fax: +7 (7172) 976329 www.kmg.kz Ends [2010-07-23]