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iteca exhibition news october 7 2010 3 95 #2 onference review 2-5 vip vip-opinions 6-7 social events 10-14 « » trust in an inter-country dimension ­ kioge ­ « » 2 kioge 2010 kazakhstan ­ the peak of oil production is still ahead opening the first session of the kioge conference entitled the role of kazakhstan in providing energy security in the caspian region sauat mynbayev minister of oil and gas of the republic of kazakhstan underlined the country s importance as a player in the global energy market continued on page 2

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2 www.kioge.com sauat mynbayev minister ministry of oil and gas republic of kazakhstan « » «» kairgeldy kabyldin chairman of the board kazmynaygas jsc national company ite group plc sir andrew wood senior advisor ite group plc 5 3,7 ­ 2020 130 40 ­ 50 80-100 ­ ­ kioge 2010 kioge ­ ­ kazakhstan possesses confirmed recoverable oil reserves estimated at over 5 bln tons and more than 3.7 trln cubic metres of gas moreover kazakhstan is one of the few oil producing countries whose production peak is still ahead according to forecasts we will be producing about 130 mln tons of oil in 2020 this means that over the next 40-50 years the country will be annually exporting 80-100 mln tons of oil having such resources continued the minister suggests the possibility of production which however still needs to be fulfilled to this end investment is required which means that the creation and maintenance of an attractive investment climate the availability of the latest technologies and sufficient and diversified export routes are crucially important in the end these are issues of long-term partnership and trusting relations between all the market participants and of course trust in an inter-country dimension my strong hope is that kioge 2010 will facilitate the realisation of all of these objectives and we very much appreciate your contribution to these processes emphasised the minister the prestige of the kioge conference which has been built up over the almost two decades since its launch and the format of this the eighteenth edition of the conference suggests that mr mynbayev s wishes have a firm basis upon which to be realised the conference participants as always include lots of representatives of major oil and gas companies from various countries geologists and lawyers with local and international press covering the event in detail « « » kenzhebek ibrashev general director kazmunaygas exploration production jsc uzakbay karabalin general director kazakh institute of oil and gas angus miller caspian energy advisor to the uk foreign office lyazzat kiinov deputy ministry of oil and gas republik of kazakhstan professor philip andrews-speed dundee university united kingdom

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daily report of the kazakhstan international oil&gas exhibition and conference www.kioge.kz 3 kioge ­ kioge ­ 3 kioge kioge ­ «» « » 4 from the kioge podium ­ on successes and challenges to discuss the oil and gas sector at the kioge sessions is in fact to discuss the prospects of the whole of kazakhstan s economy mr lyazzat kiinov deputy minister of oil and gas of the republic of kazakhstan reminded the participants that the oil and gas industry provides quite a considerable share of the gross national product budget revenues and foreign currency receipts in the country proven oil reserves in kazakhstan account for just over 3 of total world reserves which makes the country one of the top ten global leaders in terms of oil and gas resources said mr kiinov an important function of kioge has always been the fact that important political and economic news concerning oil and gas issues is announced at the event this year was no exception as the deputy minister said work is currently underway within the framework of the customs union and unified economic area for an agreement on a procedure for organising managing operating and developing the market of oil petroleum products and gas in the republic of kazakhstan republic of belarus and russian federation another traditional feature of kioge is that it is not purely a ceremonial event where everyone talks just about successes but a platform for discussing serious problems and pressing issues in the industry this feature was also evident at the conference discussions mr kiinov noted that there had been no noticeable increase in oil and gas reserves over the past year which suggests insufficient continued on page 4 « «» bazar eskozha senior geologist kazmynaygas exploration production jsc max petroleum michael b young president and cfo maxpetroleum independent exploration in kazakhstan dewery and leboeuf jon hines senior partner and head of cis energy praktice dewery and leboeuf schlumberger brian groody general director schlumberger salans glenn kolleny senior partner salans «» alexander engels deputy general director for science and prospektive development geosystem baker hughes atle loge managing director baker hughes

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4 www.kioge.com mybadala dr steve moore regional vice president middle east and central asia mybadala lloyd s register kazakhstan llp chris renwick general director lloyd s register kazakhstan llp tethys dr david robson chairman president and ceo tethys petroleum limited 76,5 80 2015 100 1990 kioge «» ­ 20 50 « «»» 28 24 support for hydrocarbons exploration and in his paper entitled the importance of caspian energy resources for china professor philip andrews-speed from the university of dundee uk emphasised that kazakhstan and central asian countries will have to compete for a decent place in the market of energy resources imported by china but whatever the case oil production in kazakhstan is growing considerably while 76.5 mln tons of oil and gas condensate was produced last year this year s figure according to mr kiinov is expected to be just over 80 mln tons by 2015 according to the ministry s estimates the country will be producing about 100 mln tons of oil how far these figures are from those observed in the early 1990s when kioge was launched in kazakhstan kcoi maksat tuleubayev co chairman of the board kcoi kosan taskinbayev director kazakh scientific research geological survey oil institute kazakhstan is among the priorities mr uzakbai karabalin general director of the kazakh institute of oil and gas king stressed that kazakhstan s oil and gas industry is witnessing a considerable increase in the volume of engineering services this has promoted the establishment of a whole number of kazakhstani engineering companies today there are about 20 foreign and some 50 domestic companies of this type operating in the country and king is one such kazakhstani company since being established the institute has taken part in the implementation of major projects in kazakhstan s oil and gas sector said mr karabalin it is crucial for kazakhstan s oil producing sector to have its own «» vyacheslav pavlenko director department for investment and project financing sberbank jsc subsidiary bank bj services baker hughes akhmed jumakaliev district business development manager bj services a baker hughes company hsbc simen munter chief executive officer hsbc bank kazakhstan

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daily report of the kazakhstan international oil&gas exhibition and conference www.kioge.kz 5 gabriel de lastours principal banker natural resources european bank for reconstruction and development khaznah strategeies ltd peter kaznacheev managing partner khaznah strategeies ltd galina kazantseva director south branch kazakh institute for standardisation 22 10 9,3 11 22 3,5 2020 « » « » qualified national engineering which is shown by the following figures kazmunaygas national company jsc kmg according to mr kairgeldy kabyldin chairman of the board of kmg accounts for about 28 of total production in the country another 24 is accounted for by us companies 22 by chinese and 10 by russian last year kmg s share in the gross national product of kazakhstan was 9.3 while this year according to estimates it will be about 11 we also provide 22 of revenues to the budget kmg has implemented a number of major investment projects totalling 3.5 bln us dollars noted mr kabyldin the head of kmg regards the company s prospects as very impressive and kazakhstan according to him is going to be one of the top ten oil producing countries in the world by 2020 the international significance of kazakhstan s energy potential was reflected in a paper by angus miller caspian energy advisor at the foreign and commonwealth office in the uk the transition to alternative types of energy will take according to him years if not decades and the united kingdom over this time will continue to have a demand for hydrocarbon imports maybe even greater than in previous years we should note kazakhstan s support of the initiative for transparency in the production industry the southern corridor remains an important aspect of the energy security of the united kingdom and kazakhstan will continue to be a priority country for the uk said mr miller akin gump strauss hauer and feld greg hammond partner akin gump strauss hauer and feld ernst and young erlan dosymbekov partner ernst and young ignacio de calonje ifs senior investment officer the world bank group « » grata assel ilyassova partner head of tax law deportment grata law firm salans kanat skakov partner salans

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6 www.kioge.com vip­ kioge kioge the kioge exhibition is a platform for the mutually beneficial establishment and development of partnerships between domestic and international companies operating in the oil and gas industry and as you know there are a lot of large-scale projects being implemented in kazakhstan at the moment during the exhibition there is a series of conferences workshops and meetings facilitating discussion of a great many current issues i am sure that many of you are not newcomers to this event the oil and gas industry is becoming more and more high-tech innovations are very important and i think that this platform for discussion and presentation will give you an opportunity to learn about innovations and use them in the work of your companies minister of oil and gas of the republic of kazakhstan sauat mynbayev kioge «» «» 2015 our company is a regular exhibitor at kioge the exhibition period clearly reflects the picture of what is happening in the kazakhstani and global fuel and energy industry in addition to our work in the oil and gas industry we are engaged in a business partnership with social projects kazmunaygas and its subsidiary companies were among the first to provide assistance in eliminating the consequences of a natural disaster in the villages of dossor and makat in kazakhstan s atyrau region i would like to highlight the fact that kazmunaygas is successfully pursuing a policy of augmenting the resource base we are currently implementing a lot of large-scale projects to increase hydrocarbon reserves and develop transport infrastructure which will ensure reliable supplies of oil and gas to both internal and external markets we operate « «» kairgeldy kabyldin chairman of the board kazmunaygas nc jsc based on defined goals and objectives the main one of which is the entry of our company into the list of the top thirty international oil and gas companies by 2015

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daily report of the kazakhstan international oil&gas exhibition and conference www.kioge.kz 7 vip­opinions kioge i think that combined with the discussions that are now taking place in astana the exhibition and conference in almaty will be a significant demonstration of all the current issues and achievements of the oil and gas sector given that the agenda has a good set of specialised reports from leading kazakhstani and international companies and visitors to kioge will be able to learn about the exhibits presented at different stands that are related to their spheres of activity i am pleased to once again be present at this event which is taking place for the eighteenth time and is one of the major forums in the large series of events held each year in the oil and gas sector kioge chairman of the kioge exhibition and conference sir andrew wood kioge 2010 « » « » «» «» «» a cooperative workshop a roundtable workshop entitled current innovative approaches to oil and gas field development was held within the kioge 2010 conference we will be able to purposefully discuss more specific issues concerning innovations in our industry said mr uzakbai karabalin general director of kazakh institute of oil and gas jsc king at the opening of the workshop he noted that the activities of the workshop s organiser geosystem are well-known in kazakhstan the software products provided by geosystem have been successfully introduced at kazmunaygas they are easy to use which facilitates quick staff training in their use said mr karabalin there are plans to start developing a kazakhstani software product together with geosystem we have signed a memorandum of cooperation i think that this workshop will provide an opportunity to lay yet another foundation stone for the building we are going to raise together said king s general director uzakbay karabalin general direktor kazakh instute of oil and gas yuri kaledin director of the «soft» department geosystem «» pavel kibitkin general director geosystem llp candidate of sciencephysics and mathematics «» valentin shelepov first deputy chairman rosnedra regional office of central field development commission rosnedra

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8 www.kioge.com kioge « «» sir andrew wood chairman of exhibition and conference sauat mynbayev minister of oil and gas of the republic of kazakhstan kairgeldy kabyldin chairman of the board kazmunaygaz jsc national company 7 kioge «» kioge on the first day of the conference saw the official opening of the kioge exhibition which was attended by the minister and deputy minister of oil and gas of kazakhstan and other officials this is an important part of how kioge is regarded in kazakhstan.

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10 www.kioge.com siemens alexander hein sales director onshore siemens ag michael bersch marketing director siemens ag batyrzhan tergeussizov service manager siemens on shore solutions siemens ag siemens ag siemens kioge «siemens» closer to the customer siemens has been exhibiting at kioge for many years with its business-like atmosphere the event provides an excellent opportunity to meet our customers and partners face to face we consider the exhibition a unique venue for communication where we can find out the needs and expectations of the customer kay zwingenberger director siemens llp intercontinental almaty the ankara in kazakhstan « .» a cocktail party from karachaganak the first day of the conference was traditionally wound up with a cocktail reception at the intercontinental almaty the ankara in kazakhstan hotel the reception was sponsored by karachaganak petroleum operating b v kpo to the sounds of a string quartet the conference organisers introduced those present to the consortium s activities emphasising the considerable contribution of the karachaganak hydrocarbon field to the development of kazakhstan s economy and the growing prosperity of the residents of the west kazakhstan region.

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12 www.kioge.com 7 royal tulip almaty vip kioge 2010 « «» a high-level reception on 7 october royal tulip almaty a new hotel located at the foot of the tian shan mountains in the southern capital was the venue for a vip gala reception with kazmunaigas exploration production jsc acting as the general sponsor the elegant atmosphere in the hall created a special mood amongst the guests from the very start of the evening the open and broad soul of the kazakh people was embodied in the captivating sounds of national musical instruments and the rhythms of national dances even after two extremely busy days at kioge 2010 the guests continued to share their impressions of business meetings partnership agreements and new contacts which they were able to augment at the reception as well mr kenzhebek ibrashev general director of kazmunaigas ep jsc welcomed the high-ranking guests and noted the international significance of the annual exhibition and conference during the evening the guests enjoyed the enchanting voice of the kazakh pop star zhanna orynbasarova who performed classic jazz compositions as well as performances by national vocal and instrumental ensembles.

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14 www.kioge.com kioge rixos almaty kioge kioge baker hughes «» « 54» the main evening of kioge exactly a year ago the rixos almaty hotel held a prize draw for kioge exhibitors and yesterday this modern city hotel hosted a festive gala reception devoted to the exhibition the organisers of kioge and the sponsor of the evening baker hughes once again surprised the invitees with the variety of music and dancing at the reception on entering the lobby the guests were met by aru an ensemble of national musical instruments the guests were also treated to a performance by belly dancer yulia fokina the traditional presentation of commemorative awards to long-term exhibitors and newcomers and of course for the best exhibition stands was a highlight of the evening the organisers presented long-term partners with watches in the shape of an oil drop which were specially made for the occasion the event ended with dancing to popular international hits performed live by the band studio 54 ies man turbo ag man diesel turbo se baker hughes fmc technologies «» « «» dhl kazakhstan ims arcelormittal allied international « .» kpo socar loyalty support award ies ­ italian group man turbo ag man diesel turbo se baker hughes fmc technologies paker scientific and industrial company kazgiproneftetrans ec llp special award for overall participation gazprommash gazprom dhl kazakhstan ims debut arcelormittal national group china best designed stand by a company ­ allied international and petroleum operating b.v kpo best designed stand by a national oil company ­socar awards iteca exhibition news 3 95 «iteca» ducat 4g 9 32 intercontinental almaty hotel 3 «iteca» 050057 42 +7 727 2583437 34 +7 727 2583444 media@iteca.kz www.iteca.kz «lux media» 050050 4 7 727 2333173 178 +7 727 2333180/81 e-mail info@luxmedia.kz 5624 18 2005 iteca exhibition news .

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