KMG E&P’s Ozenmunaigas Hit with Envirnomental Damage Charge

JSC KazMunaiGas Exploration Production announces that the Department of Ecology of Mangystau Region (“Department of Ecology”) has presented JSC “Ozenmunaigas” (OMG) with a claim for environmental damage for the amount of 327.9 billion Tenge in relation to the disposal of contaminated soil.

This claim is made on the same basis as an administrative fine of 212.6 billion Tenge, and an environmental damage fine for the amount of 59.3 billion Tenge (each referred in the press release dated 20 February 2014). Both claims have been successfully appealed during 2013 and February 2014.

OMG disputes the allegation and is taking legal action to appeal the claim. The disposal of contaminated soil resulted from past activities on the site and did not result from activity by either OMG or KMG EP.

Given the positive outcome of previous appeals, the Company believes that OMG will successfully appeal this allegation.