National Company KazMunayGaz (Kazakhstan) announces beginning production of composite plastic pipes at Atyrau Polyethylene Pipe Plant

/KASE, February 16, 11/ - National Company KazMunayGaz (Astana), whose bonds are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following press-release of February 15, 2011: quote On February 15, 2011 an honour ceremony marking the beginning of production of composite metal-plastic pipes used in heating and hot water supply systems was held at Atyrau Polyethylene Pipe Plant belonging to Chevron. The expansion of the plant's capacity and putting into operation of a technologically advanced manufacture with no likes in Kazakhstan and the CIS has been carried out under Chevron's programme envisaging reinvestment of a share of the company's profits in Kazakhstan. - The launch of this production at APPP will stimulate the domestic producers to expand their product range, open new productions, and create more work places, - said K. Kabyldin, CEO of KazMunayGaz at the ceremony. The rated capacity of the new production should be as high as 2 th. tons of 12-110 mm diameter pipes a year. Metal-plastic pipes are stainless and can withstand aggressive environments being a perfect alternative to metal pipes. Their service time is estimated at 50 years. An expansion of the production at Atyrau Polyethylene Pipe Plant of up to 17 th. tons of pipes a year will make it possible to reduce the import of substitutes from abroad. Chevron has been a long-term partner of KazMunayGaz in the largest oil and gas project in Atyrau region - Tengizchevroil. A successful implementation of projects on production extension (Second Generation Plant/Injection of Crude Gas) has not only made an increase in oil production possible, but also it has contributed to sustainable development of suppliers from Kazakhstan, creation of joint-ventures between domestic and foreign enterprises. KazMunayGaz is active at increasing the Kazakhstan-made contents and the share of Kazakhstan-based manufacturers in the total volume of procurement. Based on results of 2010, the total volume of procurement across KazMunayGaz made up KZT1,595.2 bn, whereas the Kazakhstan-made contents were as high as 51%, or KZT811 bn. In particular, agreements worth KZT223 bn were made with enterprises from Atyrau region, which made up 14% of the total procurement. PR Department National Company KazMunayGaz Kazakhstan, 010000, Astana, Kabanbai batyr ave., 19 tel. +7 (7172) 976340, fax: +7 (7172) 976329 www.kmg.kz unquote [2011-02-16]