/KASE, February 3, 12/ - JSC "National Company KazMunayGas" (Astana), whose bonds are officially listed at Kazakhstan Stock Exchange (KASE), has provided KASE with the following press-release of February 3, 2012:

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On February 3, 2012 in Astana there was an extended meeting of the board of JSC NWF "Samruk-Kazyna". The meeting was attended by representatives of stakeholders - government bodies and heads of structural units and subsidiaries of the Fund.

Chairman of Management Board of NC "KazMunayGas" Lazzat Kiinov reported on main financial and operating results for 2011, plans for 2012 and top-priority measures aimed at implementation of the Message of the President of the Republic of Kazakhstan to the people of Kazakhstan "Social-economic modernization - main vector of Kazakhstan's development".

• This year KazMunayGas's activity will be focused on implementation of strategic objectives, including KMG's joining the Karachaganak project, ensuring of oil production at Kashagan oilfield, construction of the "Beineu-Bozoi- Shymkent" gas pipeline and other major projects, - said Chairman of Management Board of NC "KazMunayGas" Lazzat Kiinov.

In his speech L. Kiinov outlined several major directions of work in 2012.

Firstly, NC "KazMunayGas" will continue the implementation of a project involving gasification of Astana and central Kazakhstan. Plans for 2012 also include deciding on financing the project and constructing the pipeline.

Secondly, the implementation of the project "Construction of the deep oil processing units at Atyrau oil refinery will allow increasing the plant's capacity to 5.5 m tons of crude oil a year, the depth of oil refining to 87%, the output of light oil products - to 77%, improve the quality of motor fuels to Euro-4 and 5 by 2016.

Thirdly, construction of Karachaganak gas processing plant is important with the plant due to cover entire Kazakhstan with commodity gas. Objectives for 2012 include surveys and feasibility studies.

Fourthly, NC "KazMunayGas" will take part in the implementation of the project "Construction of an integrated gas and chemical complex in Atyrau", whose objective will be creation of oil-chemical production units for deep refining of hydrocarbons and production of basic petroleum-chemical items: polypropylene and polyethylene.

• As part of measures aimed at implementing our President's orders for this year, NC "KazMunayGas" will also carry out a large-scale Program of restructuring its assets in 2012-2016, as well as optimizing the number of staff at the Company's HQ", - pointed out L. Kiinov.

It is expected that as a result of the restructuring program's implementation the total number of subsidiaries and affiliates of KMG will go down by 22%, the staff number - by 25%.

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[2012-02-03]