KazMunaiGas E&P; releases 9-month financial statements

November 26, 2012

JSC KazMunaiGas Exploration Production (“KMG EP” or “the Company”) announces its condensed consolidated interim financial statements for the nine months ended September 30, 2012.

Revenues amounted to 605 bn Tenge (US$4,067m)1, which is 11% higher compared to the revenues in the same period of 2011 on higher export volumes and higher domestic prices.

Net profit amounted to 173bn Tenge (US$1,163m) and earnings per share – 2,480 Tenge (US$2.8 per GDR), an increase of 5% and 9%, respectively, compared to the same period of 2011.

Production Highlights

In the first nine months of 2012 KMG EP produced 9,108 thousand tonnes of crude oil (246 kbopd), including the Company’s stakes in Kazgermunai (KGM), CCEL and PetroKazakhstan Inc. (PKI) which is 1% less than in the same period of 2011.

JSC Uzenmunaigas (UMG) produced 3,699 thousand tonnes (99 kbopd), which is 89 thousand tonnes less than in the same period of 2011. JSC Embamunaigas (EMG) produced 2,096 thousand tonnes (56 kbopd), which is similar to the volume produced in the same period of 2011. The total volume of the oil produced at UMG and EMG is 5,795 thousand tonnes (156 kbopd).

Taking into account results of the first nine months of the year, the Company expects annual production in UMG in 2012 to be 4.9 million tonnes (99 kbopd). The Company expects that EMG will achieve its initial plan of 2.8 million tonnes. Thus, it is expected that the total volume of the oil produced at UMG and EMG in 2012 will be 7.7 million tonnes (156 kbopd).

The Company’s share in the production from KGM, CCEL and PKI for the first nine months of 2012 amounted to 3,313 thousand tonnes of crude oil (91 kbopd), about the same as in the first nine months of 2011. The Company’s shares in production plans of KGM, CCEL and PKI remain as 4.4 million tonnes (91 kbopd) in 2012.

Crude oil sales

In the first nine months of 2012 the Company’s export and domestic sales from UMG and EMG were 4,624 thousand tonnes (12 kbopd) and 1,236 thousand tonnes (33 kbopd) respectively.

The Company’s share in the sales from KGM, CCEL and PKI was 3,348 thousand tonnes of crude oil (93 kbopd), including 2,463 thousand tonnes (68 kbopd) or 74% of total sales supplied to export markets.

Net Profit for the Period

Profit after tax (net income) in the first nine months of 2012 was 173bn Tenge (US$1,163m), representing a 5% increase compared to the same period of 2011, mainly due to higher export volumes and higher prices for domestic supply, partially offset by higher employee costs and income tax expenses.

Revenues

The Company’s revenues in the first nine months of 2012 amounted to 605bn Tenge (US$4,067m), which is 59bn Tenge higher compared to those of the same period of 2011. This resulted from the 6% increase in export volumes and the 36% increase in domestic selling prices, compared to the same period of 2011.

Taxes other than on Income

Taxes, other than on income,