Razvedka Dobycha KazMunayGaz AO : MET rate reduced for JSC Ozenmunaigas in 2016

Astana, 16 September 2016. JSC KazMunaiGas Exploration Production ('KMG EP' or the 'Company') is pleased to announce that JSC Ozenmunaigas ('OMG'), a subsidiary of KMG EP, has received approval of its application for a temporary reduced rate of Mineral Extraction Tax ('MET') for the Uzen and Karamandybas fields in Mangystau oblast. The reduced MET rate is set at 9.0% (compared to 13.0% in 2015) for the whole of 2016 on the condition that in 2016 Uzen and Karamandybas fields record losses under tax accounting. The maximum benefit available is expected to be approximately 17 billion Tenge in 2016, which may ultimately be reduced in accordance with current legislation should the fields have taxable profit for 2016.

The corresponding Government Resolution was published on September 10, 2016 and shall come into force ten calendar days after its first official publication.

Notes to Editors
KMG EPis among the top three Kazakh oil producers. The overall production in 2015 was 12.4 million tonnes (251 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The Company's volume of proved and probable reserves excluding shares in the associates, at the end of 2015 was 193 million tonnes (1,409 mmbbl). The Company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn at its IPO in September 2006.

OMG is a core operating subsidiary of KMG EP which operates on the Uzen and Karamandybas fields in the Mangystau Province of Kazakhstan. It has around 14 thousand employees, including service company employees.

For further details please contact us at:

KMG EP. Investor Relations (+7 7172 97 5433)
Saken Shoshanov
e-mail: ir@kmgep.kz

KMG EP. Public Relations (+7 7172 97 78 87)
Bakdaulet Tolegen
e-mail: pr@kmgep.kz

Brunswick Group (+44 207 404 5959)
Carole Cable
e-mail: KMGEP@brunswickgroup.com

Bell Pottinger (+44 203 772 2500)
e-mail: KMGEP@bellpottinger.com
Gavin Davis
Henry Lerwill

Forward-looking statements
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