JSC KazMunaiGas Exploration Production

Credit Suisse Moscow Oil&Gas Day

June 2007

2

Important notice

Forward-looking statements

This document includes statements that are, or may be deemed to be, ‘‘forward-looking statements’’. Th ese forward-looking statements can be identified by the use of forward- looking terminology, including, but not limited to, the terms ‘‘believes’’, ‘‘estimates’’, ‘‘anticipates’’, ‘‘expects’’, ‘‘inte nds’’, ‘‘may’’, ‘‘target’’, ‘‘will’’, or ‘‘should’’ or, in each case, their negative or other variations or comparable terminology, or by discuss ions 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 no t limited to, statements regarding the JSC KazMunaiGas Exploration Productio n (“Company”) intentions, beliefs and statements of current expectations concerning, amongst other things, the Company’s res ults of operations, financial condition, liquidity, prospects, growth, strategies and as to the industries in which the Co mpany operates. By their nature, forward-looking st atements involve risk and uncertainty because they relate to future events an d 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 con dition and liquidity and the development of the country and the industries i n which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements con tained in this document. The Company does not inten d, and does not assume any obligation, to update or revise any forw ard-looking statements or industry information set out in this document, whether as a result of new information, future even ts or otherwise. The Company does not make any repr esentation, warranty or prediction that the results anticipated by such for ward-looking statements will be achieved.

Cautionary Note to US Investors

The US SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reser ves that the company has demonstrated by actual production or conclusive for mation tests to be economically and legally produci ble under existing economic and operating conditions. The crude oil re serves of Company within this document have been es timated by Gaffney, Cline & Associates (‘‘GCA’’) according to standards established by the Society of Petroleum Engineers ( ‘‘SPE’’) and the World Petroleum Congresses (‘‘WPC’’) and thus proved rese rves may differ from those estimated according to t he definitions of the US SEC. Further, the Company uses certain terms in thi s document in referring to the Company’s reserves, s uch as ‘‘probable’’ or ‘‘possible’’ reserves, that the US SEC’s guidelines w ould prohibit it from including in filings with the US SEC if the Company were subject to reporting requirements under the US Exchange Act. Prospective investors should read ‘‘ The Company—Company’s Reserves’’ section in IPO prospectus and t he report of GCA, an international oil and gas cons ultant, on the Company’s reserves, included in this document (the ‘‘GCA Report’’), for more information on the Compan y’s reserves and the reserves definitions the Company uses.

3

KMG EP at a glance

– Upstream, onshore Kazakhstan

– 2P oil reserves of 1.5 billion bbl(1)

– 21 years of 2P reserves life

– Production of 192 mbpd in 2006

(188 mbpd in 2005)

– 2006 Revenue of US$3.3 billion

– 2006 EBITDA of US$1.9 billion

– 2006 Net Income (2) of US$972 million

Note:(1) Source: Gaffney, Cline & Associates reserves estimate, prepared in accordance with SPE, as at 31 December 2006(2) From continuing operationsConvenience translation from Tenge at KZT/US$ 126.09

4

Unique in Kazakhstan; different from regional and g lobal peers

Unique position in Kazakhstan oil and gas sector, no “perfect” peers for comparison

• The only large oil producer available to international portfolio investors

• Exclusive relationship with the (state-owned) parent company NC KMG

Comparison with regional and global peers should take into account

• Access to resources

• Tax regime

• Cost reduction potential

5

•PetroKazakhstan 33%•TengizChevroil 20%•Kashagan 8.33%•COGC (Khvalynskoye) 50%• KazMunaiTeniz 100%•Zhambai 100%•Kazakhoil-Aktobe 50%•Kazakhturkmunai 51%

• KazTransOil 100%• KazTransGas 100%• KazMorTransFlot 50%• CPC 19%

• Atyrau refinery 99.07%• Shymkent refinery 50%• Trade House KMG 100%• KazRosGas 50%• TenizService 99.9%• KING (research institute) 83.9%

• UzenMG, EmbaMG• Kazgermunai 50%

• Formalised relationship with the parent:- Relationship Agreement- Services Agreement

• 4 out of 8 directors represent NC KMG

Close relationship with National Company KazMunaiGa s

Holding SamrukRepublic of Kazakhstan Other NCs

100%

100%

National Company KazMunaiGas

Free floatLondon (LSE)Almaty (KASE)

39%* KMG EP

61%*

TransportationRefining, marketing,

servicesOther upstream

* ordinary shares

6

Grow and replace reserves

Cost and asset rationalisation

Environmental improvements

Maintain production in existing fields

• Exploit the rights granted by NC KMG in respect of existing producing and unlicensed blocks

• Selective acquisitions in Kazakhstan and abroad

• Continue exploration efforts on existing and new blocks

• Sustain production from the existing reserve base over the medium term• Continue the use of secondary and enhanced oil recovery techniques

• Initiatives in place to reduce production costs and capex over the medium term

• Asset Optimisation Programme underway to divest non-core subsidiaries

• Policies under implementation to meet international environmental, labour, HR and safety standards

Deliver sustainable shareholder returns

Strategy

7

Preferential rights to acquire producing assets

7

Company

“A”Company

“B”

Deal:

«А» decides to sell

the asset “X”

KMG EP wants to buy

the asset “X”

Analysis

YES

NO

1

MEMR

2

3

NC KMG

KMG EP

4

5

6

7

asset Х

8

9

1

The company “A” decides to sell the asset “X”(existing, licensed) to the company “B”

MEMR receives a request for the deal approval, as in accordance with the Article 71 of the Subsoil Law the State has a priority right for acquiring the asset “X”

MEMR notifies NC KMG and provides data for analysis

NC KMG notifies KMG EP and provides data for analysis

KMG EP requests NC KMG to acquire the asset “X”

NC KMG agrees with MEMR on realization of the priority right for acquiring the asset “X”

The company “A” is notified on the State’s realization of its priority right for acquiring the asset “X”

NC KMG acquires the asset “X” from the company “A”

KMG EP acquires the asset “X” from NC KMG

KMG EP notifies MEMR through NC KMG on no interest in the asset “X”. MEMR rejects to apply its priority right. The company “A” can proceed with selling of the asset “X” to the company “B”.

2

9

8

7

6

5

4

3

8

Preferential rights to acquire unlicensed acreage

1

MEMR decides to sell the asset “X”(unlicensed block/field).

MEMR notifies NC KMG and provides data for analysis

NC KMG notifies KMG EP and provides data for analysis

KMG EP requests NC KMG to initiate direct negotiation with MEMR on acquiring the asset “X”

NC KMG agrees with MEMR on acquisition of the asset “X”

NC KMG acquires the asset “X” from MEMR without any tender

KMG EP acquires the asset “A” from NC KMG at fair price

KMG EP notifies MEMR through NC KMG on no interest in the asset “X”. The asset “X” is offered at open auction.

2

7

6

5

4

3

9

Acquisition Opportunities

Investors in top 10 Kazakh oil and gas producers

Source: Wood Mackenzie, Company information(*) Still under development

1. TCO (Tengizchevroil) ChevronTexaco, ExxonMobil, Lukoil, NC KMG

2. KPO (Karachaganak) Eni, BG, ChevronTexaco, Lukoil

3. KMG EP NC KMG 60%, portfolio investors (listed on KASE, LSE)

4. Aktobemunaigas CNPC

5. Mangistaumunaigas Central Asia Petroleum

6. PKZ Kumkol PKZ (CNPC 67% NC KMG 33%)

7. Turgai Petroleum PKZ 50%, Lukoil 50%

8. Kazgermunai PKZ 50%, KMG EP 50%

9. Karazhanbasmunai Nations Energy

10. KazakhoilAktobe Lukoil, NC KMG

Kashagan* Eni, ExxonMobil, Shell, Total,

ConocoPhillips, INPEX, NC KMG

Source: MEMRNote: KMG EP production converted using factor of 7.36 boe per tonne,

KGM - 7.62, others - 7.33

267

222

208

192

118

115

74

68

60

45

20

134

0 50 100 150 200 250 300

Tengizchevroil

KMG EP+50% KGM

KPO

KMG EP

Aktobemunaigas

Mangistaumunaigas

PKZ Kumkol

Turgai-Petroleum

Kazgermunai

Karazhambasmunai

Kazakhoil-Actobe

Others

50%

Top Kazakh operating entities (kbopd, 2006)

10

Kazgermunai

• The acquisition was completed in April 2007

• KMG EP owns 50% of Kazgermunai

• Price: KZT 118,3 billion (US$ 969 million)

• Fields: Akshabulak, Nuraly and Aksai(Kyzilorda region, south-central Kazakhstan)

• Production in 2006: 2.9 million tonnes(60 kbopd)

• 2P oil reserves (September 2006): 40.7 million tonnes (310 million bbl)

CPC

RUSSIA

UZBEKISTAN KYRGYZSTAN

CHINA

KAZAKHSTAN

Kazgermunai

Turgai basin

Pre-Caspian basin

South Mangyshlak basin

Producing assets

EMG

UMG

= Current assets

= Potential additions

UA

S

BTC

Oil RefineryOil pipeline

Exploration prospects

11

RUSSIA

UZBEKISTAN KYRGYZSTAN

CHINA

KAZAKHSTAN

Turgai basin

Pre-Caspian basin

South Mangyshlak basin

Producing assets

Exploration prospects

EMG

UMG

= Current assets

= Potential additions

Karazhanbas

Nations Energy (Karazhanbas oil field)

• In December 2006 NC KMG received an option to acquire 50% in Nations Energy

• In May 2007 the option was transferred from NC KMG to KMG EP

• Price: US$955 million subject to certain adjustments,

• Financing: US$150 to be equity-financed and entitled to priority return on investment, the remaining balance to be debt-financed

• Production in 2006: 2.3 million tonnes(42 kbopd)

• 1P oil reserves (as at the end of 2006): 55 million tonnes (364 million bbl)

UA

S

BTC

Oil RefineryOil pipeline

CPC

12

PetroKazakhstan (PKZ)

• In July 2006 NC KMG purchased 33% in PKZ for US$1.4 billion

• It is expected that NC KMG would offer 33% in PKZ to KMG EP

• Interests in 11 fields in South TurgaiBasin in Central Kazakhstan

• Main upstream assets: PKZ Kumkol(100%), Turgai Petroleum (50%), Kazgermunai (50%)

• Production in 2006: 138 kbopd(~6.5 million tonnes)

• 2P oil reserves (as of the end of 2004): 549.8 million bbl (~75.4 million tonnes)

RUSSIA

UZBEKISTAN KYRGYZSTAN

CHINA

KAZAKHSTAN

Kazgermunai

Turgai basin

Pre-Caspian basin

South Mangyshlak basin

Producing assets

EMG

UMG

= Current assets

= Potential additions

PKZ

UA

S

BTC

Oil RefineryOil pipeline

CPC

Exploration prospects

13

Growth through acquisitions: material and profitabl e

• Combined impact of 50% Kazgermunai + 50% Nations Energy + 33% PKZ (assuming all 3 transaction go through, pro-forma estimate, based on latest publicly available information)

– Production increase ~ 50%

– Reserves addition 35 - 40% (2P)

• Focus on shareholder value

– No obligation to acquire if the terms are not attractive for shareholders

– Acquisitions are subject to approval by INEDs and (in certain cases) minority shareholders

– Example of KGM acquisition

14

Exploration projects

• Nurzhanov

• Akingen

• Makat East

• Prorva West

• Botakhan

• S. Balgimbayev

• Uzen and Karamandybas

• Kamyshitovoye South East and KamyshitovoyeSouth West

• Liman (9 post-salt structures + pre-salt potential)

• Taisoigan (11 post-salt structures)

• R-9 (17 post-salt structures + pre-salt potential)

• Territories adjacent to the Uzen and Karamandybas fields

Source: Gaffney Cline & Associates report

Turkmenistan

Uzen and Karamandybasadjacent territories

Uzen field

Uzen

Aktau

Caspian Sea

Kazakhstan

Taisoigan

Liman

R-9

Tengiz

Akingen

Makat East

Nurzhanov

Atyrau

Continued Exploration Program

New acreage

Supplementary exploration

Total prospective resources ~ 440 mm bbl(recoverable, unrisked, post-salt structures only)Source: Company estimates

15

Focus on pre-salt seismic exploration in 2007

410wellsExploration drilling

2,600 / 1502,100 / 70running km / km2Seismic surveys 2D/3D

Plan 2007Actual 2006

• Seismic surveys, 2D/3D, including studies of sub-salt horizons

• Passive seismic

• Geochemical and electro-magnetic surveys

• Processing, interpretation and re-interpretation of seismic data

• Selection of drilling candidates for 2008

• Construction of geological models of producing fields and identification of objects for supplementary exploration on the basis of 3D seismic

16

Royalties and Income Taxes (CIT + EPT) dominate tax bill

972

1 7231 925

3 269

148

(307)

(592)(77)(126)

600

1 100

1 600

2 100

2 600

3 100

3 600

Revenues Profit beforeall taxes

Roaylties Taxes otherthan income

taxes

Profit beforeincome tax

CorporateIncome tax

EPT EPT one offreversal

Net income

US$ mln

Total taxes other than income tax Income Tax

KMG EP summary P&L, 2006

17

2006 comparison of tax expenses per bbl

3,1 3,4

12,88,1 8

2,6

31,5 28,9 27,1

8,64,8 3

5,60,9

7,5

2,9

0

5

10

15

20

25

30

35

Rosneft Tatneft (E) LUKOIL PetroChina KMG EP PTTEP Apache Devon

Corporate income tax Other taxes

15.7

32.1

12.8

30.632.4

16.1

8.111.0

• For KMG EP excluding one-off EPT reversal for previous years .• For Lukoil upstream taxes only. Including other taxes, total per bbl tax expense for Lukoil would be US$36.4/bbl including US$4.1 income tax expense.• Convenience translation to US$ from Tenge at KZT/US$ 126.09, from Thai Baht at 37.91 Baht/US$ and from Chinese RMB at 7.97 RMB/US$.

(1) (2)(2) (2)

(1)

Taxes per bbl produced, US$/bbl

18

2006 comparison of effective tax rates (1)

(1) Effective tax rate = (Income Tax + Taxes other than Income Tax)/ Adjusted profit before tax Adjusted profit before tax = Profit before tax + Taxes other than Income TaxProfit before tax is adjusted for fines and penalties, if any(2) Estimated on the basis of publicly available financial statements for the first 6 months of 2006.(3) Corporate Income Tax for KMG EP excludes one-off EPT reversal for previous years of US$148 million.(4) Convenience translation to US$ from Tenge at KZT/US$ 126.09, from Thai Baht at 37.91 Baht/US$ and from Chinese RMB at 7.97 RMB/US$.

83,7 81,576,5

55,1

41,6 44,138,2

59,9

0

10

20

30

40

50

60

70

80

90

Rosneft Tatneft LUKOIL KMG EP PTTEP PetroChina Apache Devon

Effective tax rates (1), %

(3), (4)(2) (4)(4)

19

KMG EP production costs resist the industry trend

8.92

2.662.18

8.45

3.082.49

0

1

2

3

4

5

6

7

8

9

10

KMG EP LUKOIL Rosneft

2005 2006

Production expenses per 1 bbl produced,

US$/bbl

+15,8%

- 5,2%

+14,2%

Convenience translation to US$ from Tenge at KZT/US$ 132,88, 126,09 for 2005 and 2006, respectively. Production costs shown: for KMG EP - total employee costs, materials, energy, repair, maintenance and other services. For LUKOIL and Rosneft - costs directly related to oil production only, as reported by the companies.

20

Cost Reduction Initiatives

20

Optimise field development system

Extend wells/fields overhaul period

Increase life of pipelines

Modernise collection and preparation stations

• Application of enhanced reservoir

modelling capabilities

Optimise logistics and business processes

• Reduced sea water purchase cost

• Reduced power usage

• Less frequent spare parts replacement

Action Result

• Monitor quality of oil-well tubing

• Apply electric rotary and electric screw

pumps

• Replace steel pipes with fibre-glass pipes

• Complete reconstruction of preparation facility in Uzen

• Reconstruct collection system on Uzen blocks

• Automate measurement systems

• Improve automation

• Optimise number of production personnel

• Reduced power and fuel usage• Reduced well maintenance and workover cost• Reduced spare parts cost (special purpose equipment,

rods, subsurface pumps)• Reduced fuel consumption

• Reduced repair and maintenance costs

• Reduced pipe purchase cost (materials)

• Reduced power usage

• Reduced cost of spare parts, chemical reagents and

pipeline and pump repair

• Reduced necessity for pipes

• Reduced cost of feedstock and materials, fuel and service

works

• Reduced overall personnel cost

Production cost reduction target ~US$100m by 2010

21

Financial summary

9723299750Profit for the period (net income) from continuing ops

969565445302Cashflow from operations

1,5431,5581,193913Operating expenses

391466371194Capex (3)

55.0%62.6%74.6%77.5%adjusted effective tax rate (2)

(751)(746)(428)(211)Income tax (expense)

(3.5)8.2(25.3)(14.9)Finance (expense) income

1,7261,068550275Operating profit

3.12.72.42.0DD&A

10.411.19.08.6Transportation, taxes, management fees, fines and penalties, other

8.58.96.85.1Energy, materials, payroll, repairs and other services

22.022.718.215.7per bbl produced, including

3,2692,6261,7431,188Total revenue

192188179159Production (kbopd)

2006200520042003millions of US$(1) , or as indicated

(1) Convenience translation from Tenge at KZT/US$ 149.58, 136.04, 132.88, 126.09 for 2003, 2004, 2005 and 2006 respectively

(2) Pretax income adjusted for fines and penalties and one-off effect of EPT change in 2006 of KZT18.6 bln (~USD $148 million)

(3) Cash spent on purchases of Property, Plant and Equipment. Includes capex related to Atyrau refinery (divested in 2005) of approx US$ million 6, 67 and 101in 2003, 2004 and 2005 respectively.

22

Dividends

0.680.510.090.09Dividend per GDR, US$(1)

50038274.265.2Dividend, the same per ordinary share and

preference share, KZT

30.240.026.136.0Pay-out ratio, based on net income, %

30.324.05.86.0Pay-out ratio, based on operating cash flow, %

2006200520042003

(1) Convenience translation from Tenge at KZT/US$ at 130.23, 134.91, 125.09 and 121.8 for 2003, 2004, 2005 and 2006 respectively. One GDR corresponds to one sixth of ordinary share. The dividend per GDR for 2003, 2004 and 2005 are pro-forma based.

� KZT 500 per share (US$ 0.684 per GDR)

� ~30% pay-out

�15% in accordance with the dividend policy

�15% special

� Dividend record date May 28, 2007

� Date the dividend payments begin July 2, 2007

� The dividends were recommended by the BoD and were approved by the AGM on May 18, 2007

23

Significant financial resources available for acqui sitions

2,615

(470)

2,593

492

31 December 2006

142

(562)

553

151

31 December 2005

Primarily US$ denominated

Borrowings

Net cash (debt) at the year-end

Primarily deposits, loan to NC KMG

Financial assets

Cash and equivalents

US$ million(1)

(1) Convenience translation using KZT/US$ 133.77 and 127.00 for Tenge amounts as of December 31, 2005 and 2006.

24

Reference information

Tickers

LSE KMG

KASE RDGZ

Reuters KMGq.L

Bloomberg KMG LI

Contacts

www.kmgep.kz

Investor relations e-mail: ir@kmgep.kz

Tel +7 (3172) 975433

Share information

Total number of ordinary shares 70,220,935GDRs per one ordinary share 6

Total number of preferred shares 4,136,107

25

Appendix

26

Over 70% of production is exported

0

10

20

30

40

50

60

2003 2004 2005 2006

CPC UAS Domestic

US$/bbl

Netbacks, 2003-2006Sales volumes, 2003-2006

0

50

100

150

200

2003 2004 2005 2006

Domestic UAS CPC

154

176 186 187

24% 24% 29% 27%

55%

18%17%11%

65%54%

71%

mbopd

27

Tax summary by contract

1.0%0.5%1.0%1.0%0.5%Property tax - % of book value

0.5%0.5%0.0%0.1%0.5%Road tax - % of taxable revenue

CIT taxable income– CIT payable

CIT taxable income– CIT payable

CIT taxable income– CIT payable

CIT taxable income– CIT payable

CIT taxable income– CIT payable

– EPT from previous year-WHT on

dividends

EPT – taxable base

50%30%30%30%30%Maximum excess profit tax (EPT) rate, %

30%30%30%30%30%Corporation income tax (CIT) - %

6%8%2%-6%3.5%-6%3.5%Royalty, % of taxable revenue

1997-20171996-20212000-20201998-20181996-2021Issue and expiry years

613741321140Contract #

S.E.Novobo-gatinskoyeKenbayTengiz22 fields

Uzen& KaramandybasArea

• Tax stability for contracts signed before 01.01.2004 (all contracts held by KMG EP)

• Excess profit tax rates driven by IRR for most contracts, currently at maximum

Summary of key fiscal terms

28

Exports offer better economics

47.7119.2257.57 61.32Realised price

42.8617.8551.3455.32Netback price

4.851.376.236.00Transportation and other expenses

n/an/a3.423.91Discount (transportation, quality bank etc.)

n/an/a60.99(Urals)

65.23(CPC blend)

Market quote

AverageOtherUASCPCUS$/bbl

2006 average