Program of the NC KazMunaiGaz JSC for the Development of Kazakhstan’s Content for was approved on April 22, To increase the volume of purchases of goods, production of which was aligned in previous years and which are now manufactured in serial production. To assist domestic commodity producers in setting up production ofnew types of commodities which are currently imported. To increase Kazakhstan’s content in implementing large oil and gas projects To set up service and machinery-building assets Main goals and objectives of the Program. Expected results from the implementation of the Program 11 Increment in production of oil equipment at the plants of the RK by 2015 in comparison with 2010 by 23% or from 28.5 billion tenge to 35 billion tenge 22 Increase of the share of Kazakhstan’s content in purchases of the KMG Group on commodities to 50 % or increase by 1.6 from 242 billion tenge to 387 billion tenge 33 Increase of the share of Kazakhstan’s content in purchases of the KMG Group on work to 90 % or increase by 1.3 from 565 billion tenge to 74 billion tenge 44 Increase of the share of Kazakhstan’s content in purchases of operators of large oil and gas projects 55 Establishment of new joint production, service and machinery building assets of the KMG

“Almaty Heavy Engineering Works ” JSC “Aktyube Oil Equipment Plant” JSC “KazTurboRemont” JSC “West Kazakhstan Machinery Building Company” JSC “Voskhod” LLP “By-Caspian Machinery Building Complex” LLP “KSP Steel”LLP “Format Mash Company” LLP “Munaymash” JSC “Petropavl Heavy Engineering Works” JSC “Plant named after Kirov” JSC “Tynys” JSC “Kentau Transformer Producing Plant” JSC List of individual Kazakhstan’s companies engaged in the Program of the NC KazMunaiGaz JSC (total of 52)

Examples of support of oil and gas machinery building in Kazakhstan “Service Center KazTurboRemont” LLP NC KazMunaiGaz JSC is actively participating in the establishment of Kazakhstan’s plants:  Co-financing of the plant through issue of warrants (3 million USD)  Provision of long-term orders for complete overhaul, servicing and troubleshooting

Examples of support of oil and gas machinery building in Kazakhstan “West Kazakhstan Machinery Building Company” JSC NC KazMunaiGaz JSC is actively participating in the establishment of Kazakhstan’s plants:  Co-financing of the plant through issue of warrants (3 million USD)  Provision of long-term orders for complete overhaul, servicing and troubleshooting

List of long-term agreements concluded between the Group of NC KazMunaiGaz JSC and domestic commodity producers in 2010 Name of KMG Subsidiaries and Affiliates Name of the domestic commodity producer Duration of the agreement, years Subject of the Agreement Amount of the Agreement, millions in tenge KazMunaiGaz Ep JSC “Munaymash” JSC Sucker-rod depth pumps8 000 “Intergas Central Asia” JSC “West Kazakhstan Machinery Building Company” JSC Maintenance of gas compressor units “Service Center KazTurbopRemont” LLP ,1 “KazNefteGasProm” LLP Overhaul of MMC type 10GK at ABAC UGS Akyrtobe 1 300,5 “Atyrau Oil Refinery” LLP “Pavlodar Heavy Engineering Factory” JSC Air-cooling unit sections134,3 Total14 915

Long-term agreements planned to be concluded for with domestic commodity producers (53,6 billion tenge) Name of KMG Subsidiaries and Affiliates Total KazMunaiGaz EP JSC KazTransOil JSC KazTransGaz Group Total millions in tenge  KazTransOil JSC has submitted the long-term procurement plan for which has been approved by the decision of the Management of NC KazMunaiGaz JSC. Currently, long-term agreements with domestic commodity producers are to be signed.  “KazMunaiGaz EP” JSC – currently, a production plan is under way for and after it is approved a long term procurement plan will be signed and submitted to the Management of the NC KazMunaiGaz JSC and the Company. Further in July-August of this year open tenders will be declared among domestic producers with long-term agreements signed for  KazTransGaz Group – long-term purchase plan is planned to be submitted to the Management of the NC KMG JSC in July 2011.

Kazakhstan’s content in procurement of KazMunayGaz JSC Kazakhstan’s content in procurement of KMG Group in 2010, plan for 2011 and fact for first half of 2011 Years GoodsWorkServices Total amount in billion tenge Kaz. content, % Amount in billion tenge Kaz. content, % Amount in billion tenge Kaz. content, % Amount in billion tenge Kaz. content, % 2010 (fact) (fact) half of 2011 (fact) Note: volume of commodity procurement includes purchase of Russian oil to be processed at the “Pavlodar Petrochemical Plant” JSC

:10 According to the purchase plans for 2011, it is being planned to purchase goods, work and services in a full amount of 1,455 billion tenge, whereas it is being planned to reach the 55% index of Kazakhstan’s content from the total volume. In the first half of 2011 the KMG Group purchased goods, work and services for 1,214 billion tenge with Kazakhstan’s content amounting to 48%. The volume of goods purchased amounts to 725 billion tenge with Kazakhstan’s content in commodities amounting to 40 %. Purchased work amounts to 189 billion tenge – Kazakhstan’s content in work comprises 66%. The volume of services purchased amounts to 300 billion tenge with Kazakhstan’s content in services amounting to 57%. It is noteworthy that purchases of Russian oil to be processed at the “Pavlodar Petrochemical Plant” JSC constitute a significant portion of the volume of goods purchased, which significantly forces down the index of Kazakhstan’s content in purchases of the KMG Group. In 2011 – contracts for purchase of Russian oil have been signed for the amount of 334 billion tenge. Kazakhstan’s content in purchases of the NC KazMunaiGaz JSC

Challenging issues of Kazakhstan’s content and ways of solving them Suppliers of oil, gas, gas condensate, electricity, water and other types of commodities obtained from the subsoil of Kazakhstan or produced within Kazakhstan do not have CT-KZ certificates and thus Kazakhstan’s content for the product supplied by them amounts to zero. Notably, these types of commodities occupy a significant place within the structure of procurement of the KMG Group. If domestic suppliers of these types of commodities submitted CT-KZ certificates, Kazakhstan’s content in purchases of the KMG Group would increase from 51 to 6 % based on the results of It is necessary to revisit the existing methods and introduce necessary changes based on which those types of commodities obtained from the subsoil of Kazakhstan or produced within Kazakhstan shall be considered 100 % domestic (Kazakhstan’s) even in the absence of CT-KZ certificates; moreover, commodities with a sufficient degree of refinement shall also be considered as domestic. Relevant proposals have been submitted to the MINT of the RK and currently a new methodology of calculation of Kazakhstan’s content is being developed in light of these proposals. Challenge Ways of solutions