Kazmunaigaz Exploration Regulatory News (KMG)

PRESS RELEASE

On the situation at Uzenmunaigas with regard to the disturbances in the city of Zhanaozen

Astana, 21 December, 2011. JSC "KazMunaiGas Exploration Production" ("KMG EP" or the "Company") reports that there has been no damage caused to KMG EP production facilities during the disturbance that took place in the city of Zhanaozen on the 16th December 2011. The situation at the Uzen field is stable. Average daily production rate is maintained approximately at the level of previous days but somewhat below the planned level due do a number of power cuts in the field in December. With the help of police the security, including the armed security at all the Uzenmunaigas ("UMG") production facilities, has been arranged.

During the disturbances the administrative building of the UMG was set on fire and looted, much of the office equipment and documentation was destroyed. A temporary headquarters, located in a different building, has been set up in order to provide operational guidance for the site.

The company has experienced some difficulties transporting its employees to facilities due to drivers concerns for their safety. Alternative transportation was used to deliver technical personnel to the field, which allowed the company to maintain production. The number of oilfield workers returning to work is reaching normal levels as the police are establishing control and the situation continues to stabilize. The Company expects to meet the previously announced annual oil production target of 12.3 million tonnes, including shares in joint ventures.

Askar Balzhanov, CEO of KMG EP, said: "On behalf of the Company we would like to express our sincere condolences and sympathy to the families of those killed and injured as a result of the events on 16th December in Zhanaozen. We strongly condemn criminal actions that lead to human loss and suffering, as well as any attempts to justify them, presenting them as a continuation of labour disputes that have taken place at the oil companies in the region during the year. The measures taken by the law enforcement agencies to maintain law and order are crucial not only for production but also for the peace of all residents. We see the main contribution of the Company to restoring normal life in the city in ensuring stable operations of the city-forming enterprise - UMG. The Company's management is grateful to all members of the workforce, who, despite difficult circumstances, are making every effort to achieve this goal."

Notes to Editors

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2010 was 13.3mt (an average of 270kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL, PKI and NBK. The total volume of proved and probable reserves, as at the end of 2010 was 232mt (1.7bn bbl), including shares in the associates - about 2.2bn barrels. The Company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. The International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BBB-" corporate credit rating in December 2011 and "GAMMA-6" rating in September 2011.

For further details please contact us at:

KMG EP. Public Relations (+7 7172 97 7600)

Daulet Zhumadil

E-mail: pr@kmgep.kz

KMG EP. Investor Relations (+7 7172 97 5433)

Asel Kaliyeva

E-mail: ir@kmgep.kz 

Pelham Bell Pottinger (+44 207 861 3147)

Elena Dobson

E-mail: edobson@pelhambellpottinger.co.uk

Forward-looking statements

This document includes statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements can be identified by the use of forward-looking terminology, including, but not limited to, the terms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''may'', ''target'', ''will'', or ''should'' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include, but are not limited to, statements regarding the Company's intentions, beliefs and statements of current expectations concerning, amongst other things, the Company's results of operations, financial condition, liquidity, prospects, growth, potential acquisitions, strategies and as to the industries in which the Company operates. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of the Company's operations, financial condition and liquidity and the development of the country and the industries in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. The Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements or industry information set out in this document, whether as a result of new information, future events or otherwise. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved.