2009-08-19-2007-12-01

To acquire 50% WI in 94.6% interest (100% voting control) of E&P company Karazhanbasmunai developing Karazhanbas Field, western Kazakhstan. Total proven 364 MMBO. Production 42,700 BO/d.

Astana, Kazakhstan-based KazMunaiGas Exploration Production plans to acquire a 50% interest in Citic Canada Energy Ltd. from China state-owned conglomerate Citic Group for approximately US$930 million. Citic Canada's main asset is a 94.6% interest and 100% voting control of Karazhanbasmunai, an E&P company developing Karazhanbas Field in western Kazakhstan. Total proven reserves as of Jan. 1 are approximately 364 million barrels of oil. Production in 2006 was 42,700 barrels of oil per day. KazMunaiGas will pay US$875.7 million in cash and finance US$54.5 million. The acquisition adds 10% to KazMunaiGas' production.