AKSAI, Western Kazakhstan Oblast, 15 November 2005 – Minister of Energy and Mineral Resources of the Republic of Kazakhstan, Vladimir Shkolnik, President of National Company KazMunaiGas, Uzakbai Karabalin, and WKO Akim, Nurgaly Ashimov visited the Karachaganak field on 12 November and met with senior representatives from KPO’s major shareholders, BG Group Executive Vice-President, Dave Roberts and Eni Deputy Chief Operating Officers, Kazakhstan programme, Pietro Cavanna and Guido Michelotti, along with KPO management.

At the meeting the dignitaries discussed issues related to the implementation of a gas pipeline project, which will link the Karachaganak field and the towns of Aksai and Uralsk.

During the visit the parties also took part at a ceremony commemorating the beginning of the project.

Eni Deputy Chief Operating Officer, Kazakhstan programme, Pietro Cavanna said: “The implementation of this important project has become possible thanks to the farsightedness of Kazakhstan’s President Nursultan Nazarbayev and the RoK Authorities, whom we met in Uralsk in May 2005 to sanction the initiative. The project will ensure a stable supply of sweet gas from the Karachaganak field, increase energy self sufficiency in the region and will positively impact on the growth of the Country’s economic and industrial texture by delivering a clean and environmentally friendly energy source to the local communities.”

BG Group Executive Vice-President, Dave Roberts said: “The construction of this pipeline represents a new phase in the continuing development of the West Kazakhstan region. Through cooperation between partner companies and the Republic of Kazakhstan this project will deliver important and material benefits to many local communities."

As KPO General Director Paolo Campelli commented, “The project will improve gas supply to the villages in Karatube, Syrym, Burlin and Terekty districts situated on the left bank of the Ural river. It is expected that about 8 thousand households in the WKO will benefit from the delivery of Karachaganak gas”.

As reported earlier in May 2005, the President of Kazakhstan, Nursultan Nazarbayev was briefed on the construction plans for the sweet gas pipeline during his working visit to WKO and instructed the Karachaganak partners and KPO’s management to begin implementation of the project.

To date, KPO has identified a route of the Karachaganak-Aksai-Uralsk gas pipeline and conducted a feasibility study for the project.