Kazakhstan’s KazMunayGas wins environmental damage dispute

March 20, 2014

KazMunaiGas Exploration Production (“the Company”) announced on March 19 that the Specialized Administrative Court in Aktau of Mangistau region (“the Court”) has ruled that the Act on inspection results of the Department of Ecology of Mangistau Region (“Department of Ecology”) and the claim for environmental damage in the amount of 327.9 billion Tenge (US$ 1.8bn), which has been brought against JSC “Ozenmunaigas” (“OMG”) and referred to in the Company’s press release dated 27 February 2014 have been declared as illegitimate and have been dismissed.

There remains the possibility that the Court's ruling may be appealed by the parties and the prosecutor’s office. However, given the positive outcome of previous appeals, the Company believes that OMG will successfully appeal this claim in following court proceedings.

Source: KazMunayGas Press Office, 2014