KazMunaiGas Operations in Iraq

=History=

In December 2010 the Board of Directors of KMG's Exploration and Production subsidiary KMG EP approved the Company's participation in several projects outside Kazakhstan. These included participation in a tender to develop the Akkas field in Iraq. However since pulling out of the the contract for the Akkas field, KMG was not participating in any projects in Iraq as of December 2011.

=Activities and Contracts=

Akkas
Along with Korean Kogas, KazMunaiGas won the rights to develop the Akkas field during Iraq’s third energy bidding round in October 2010. Under the terms of the bid, Kogas was the operator of the project and the proposed remuneration fee was $7.50 per barrel of oil equivalent (boe) produced.

According to KMG EP's CEO, the new project would be of benefit to the company's employees, who would gain important experience in the area of gas field development, given that their specialists had not been fully engaged in gas production in the past, other than with 'associated gas'. In May 2011 however KazMunaiGas pulled out of the venture, leaving Kogas as the sole investor and operator and forcing the company to double its share in the project.

=References=