NOTICE: The text below was created automatically and may contain errors and differences from the contract's original PDF file. Learn more here



Contract N 1734 concluded on 05.05.2005









[----------------------IMAGE--------------------------]







CONTRACT



for Gas Production in Kzyloy Field



within License Blocks XXl-23-b (partially), c (partially),



e (partially), f (partially), XXIX-24-a (partially),



d (partially)



Shalkar District, Aktyubinsk Region



between



Ministry of Energy and Mineral Resources, Republic of Kazakhstan (hereinafter referred to as “Competent Authority”)



and



Limited Liability Partnership “BN Munai”

(hereinafter referred to as “Contractor”)









Astana, 2005



2



CONTENT





Preamble.............................................

Section 1. Definitions...............................

Section 2, Aim of Contract...........................

Section 3. Contract Effective Period.................

Section 4. Contractual Territory.....................

Section 5. Property Right for Assets and Information.

Section 6. Right of Government to Purchase and Requisition Mineral Resources........................

Section 7. General Rights and Liabilities of Parties.

Section 8. Work Programme............................

Section 9. Production Period.........................

Section 10. Accounting and Reporting.................

Section 11. Hydrocarbons Measurement.................

Section 12. Performing Subcontractual Works..........

Section 13. Financing................................

Section 14. Taxes and Payments.......................

Section 15. Accounting...............................

Section 16. Insurance................................

Section 17. Liquidation and Liquidation Fund.........

Section 18. Subsoil and Environmental Protection.....

Section 19. Security of Population and Personnel.....

Section 20. Liability of Parties for Violation of Contract Terms.......................................

Section 21. Force Majeure............................

Section 22. Confidentiality..........................

Section 23. Assignment of Rights and Liabilities.....

Section 24. Applicable Law...........................

Section 25. Settlement of Disputes...................

Section 26. Guarantee of Contract Stability .........

Section 27. Terms of Contract Termination and Suspension...........................................

Section 28. Language of Contract.....................

Section 29. Additional Terms.........................



Annexes:



Annex 1 ~ Resolution of the Government, Republic of

Kazakhstan, on transfer of rights for

subsoil use of 19 July 2001.

Annex 2 ~ License for subsoil use in Kazakhstan # MG

980 (oil) dated 12 June 1997

Annex 3 ~ Mining Allotment

Annex 4 ~ Agreement on Purchase of Information.

Annex 5 ~ Work Programme

Annex 6 ~ Concordance and experts

Annex 7 ~ Minute of Working group 3



Present contract for gas production in Kzyloi field within license blocks XXI-23-h(partially), c (partially), e (partially), f partially), XXIX-24-a (partially), d (partially), Shalkar District, Aktyubinsk Region, between Ministry of Energy and Mineral Resources, Republic of Kazakhstan (Competent Authority), and Limited Liability Partnership “BN Munai” (Contractor) is concluded on “__” ________2005 based on the License for subsoil use in Kazakhstan # MG 980 (oil) dated 12 June 1997 and Resolution of the Government on transfer of rights for subsoil use dated 19 July 2001..



PREAMBLE



Taking into consideration that:



1. In accordance with the Constitution of the Republic

of Kazakhstan subsoils and their mineral resources

are owned by the state.



2. Republic of Kazakhstan intends to use natural

resources efficiently, including gas production in

Kyzyloy, within license blocks XXI-23-b(partially), c

(partially), e (partially), f partially), XXIX-24-a

(partially), d (partially), Shalkar District,

Aktyubinsk Region.



3. Contractor wishes and is able financially to produce

gas within license blocks XX3-23-b(partially), c

(partially), e (partially), f partially), XXIX-24-a

(partially), d (partially), Shalkar District,

Aktyubinsk Region as per the Contract.



4. The Government of the Republic of Kazakhstan has

authorised the Competent Authority to conclude and

perform the Contract.



5. The Competent Body and Contractor agreed that the

Contract will regulate their mutual rights and

liabilities of gas production in Kyzyloy, within

license blocks XXL23-b (partia]ly), c (partially), e

(partially), f partially), XXJX-24-a (partially), d

(partially), Shalkar District, Aktyubinsk Region. The

Competent Authority and Contractor agree on the

following:



1. DEFINITIONS



The definitions and terms that are not explained in the Section shall have the meaning corresponding to

those contained in Law “On Subsoil and Subsoil Use” dated 27 January, 1996, (hereinafter referred to as

the Law “On Subsoil”), “On Oil” and other legislative acts on special kinds of Mineral Resources and

technogenic mineral formations.



1. Safety Subsoil use - provision with technical,

ecological and sanitary-hygienic safety during

subsoil use operations,



2. Annual work programme - plan of subsoil user’s

actions for calendar year, including volume and

direction of mining work development on production

and financial expenses.



3. Mining Allotment - document specifying graphically

and descriptively the territorial boundaries of the

area for production.



4. Production - works (operations) related to recovery

of mineral resources from subsoils to the surface,

including temporary storage of minerals.



5. Kazakhstan producer - physical person or legal

entity of the Republic of Kazakhstan producing

goods. Operating and rendering services of

Kazakhstan origin.



6. Kazakhstan origin (goods, operations and services of

Kazakhstan origin) - direct production (fulfillment)

of the goods, operations and services on the

territory of the Republic of Kazakhstan.



7. Kazakhstan content - percentage with ability to year

redistribution of volumes:

- Enabled during Kazakhstan specialists’ contract

fulfillment with dividing into categories

specifying percentage on each category in

comparison with foreign staff, quantity of which

should be reduced by years as realization of

obligatory programme for training and raising the

level of Kazakhstan specialists’ skill.



- Volumes of goods, operations and services of

Kazakhstan origin acquired both directly and by

signing subcontractor’s agreement.



8. Laws on Subsoils - Law of the Republic of Kazakhstan

“On Subsoils and Subsoil Use”, “On Oil” #2828 dated

27 January, 1996, all amendments and annexes to it

and other legislative acts on special mineral

resources.

4



9. Competent Authority - State authority determinated

by Government of the Republic of Kazakhstan acting

on behalf of the Republic of Kazakhstan on rights

exercising directly related to the conclusion and

execution of the Contract.



10. Contract - the Contract on gas production in Kyzyloy

field in Aktyubinsk region concluded between the

Competent Authority and “BN Munai” LLP, drawn up in

accordance with legislative acts of the Republic of

Kazakhstan acted at the moment of signing .



11. Contractual Territory - territory specified in the

mining allotment for the purpose of subsoil use as

per the Contract terms.



12. Liquidation fund - fund formed by subsoil user for

elimination of subsoil use operations consequences

as per the Contract.



13. Deposit - deposit of gas in Kyzyloy field in

Aktyubinsk region.



14. Minerals - part of subsoil containing minerals

recovered to the surface.



15. Tax Code - the Code of the Republic of Kazaldistan

“On Taxes and Other Obligatory Payments to Budget”

dated 12 June 2001 No. 209-H changes and amendments

to it on the date of the Contract.



16. Tax legislation - tax code and other legislation

acts regulating discharge of tax and other

obligatory payments to budget.



17. Subsoils - part of the crust below its veneer, in

case it is missing - below the surface and

reservoirs bottom to the depths accessible for

subsoil use operations based on scientific and

technological progress.



18. Subsoil Use Operations - works related to gas

production in Kyzyloy field, Aktyubinsk region as

per the Contract.



19. Conservation of Subsoil - system of arrangements

provided by legislation of the Republic of

Kazakhstan On Subsoil and Subsoil Use for prevention

of subsoil pollution during subsoil use operations,

for total and complex extraction of minerals during

production, for reduction of harmful environment

effect of subsoil use operations.



20. Contractor - Limited Liability Partnership “BN

Munai”, that has concluded the Subsoil Use Contract

with the Competent Authority.



21. Mineral Wealth - hydrocarbon (gas) in subsoil.



22. Good Practice of Deposits Development - generally

accepted international practice used by Subsoil

Users while production as rational, safe, necessary

and economically efficient.



23. Right of Subsoil Use - right of Subsoil User to own

and use subsoil within the contract bounds in

accordance with the present Contract.



24. Work Programme - all types of plans prepared for

subsoil use operations.



25. Parties - Competent Body and Contractor taken

together.



26. Subcontractor - a legal entity or a physical person

that has concluded an agreement with Contractor on

any part of the Contractor’s liabilities under the

Contract.



27. Third Party - any physical person or legal entity,

except the Party under the Contract.



28. Confirmed Reserves - geological and recoverable

mineral reserves assessed by the state expertise

commission.



29. Subsoil Area (Block) - geometrized part of subsoil

allotted within certain boundaries for subsoil use.





2. AIM OF CONTRACT



2.1. The Contract is aimed at determining and

formulating in legal terms the relationship between

the Competent Authority and Contractor on the basis

of the legislation in force on the Contract

Effective Date.



3. CONTRACT EFFECTIVE PERIOD



3.1. The Contract becomes effective from the date of its

state registration by the Competent Authority

(plenipotentiary state authority) with obligatory

issue of Certificate of Contract registration.



3.2. The Contract shall be valid till the last date of

the License validity -12.06.2007.



3.3. The extension of the Contract term is possible

after extension of the License term by agreement of

the Parties according to the state legislation.



3.4. In case of the Contract term extension, the

Contract conditions are to be changed by a written

agreement of the Parties in the form of Additional

Agreement to the Contract which should take

5



into account omitted economic interests of the government as a result of delay of Contract conclusion.



4. CONTRACTUAL TERRITORY



4.1. Contractor shall carry out gas production in

Kyzyloy, Aktyubinsk Region, within the Contractual

Territory according to the terms of License and

Contract.



4.2. If during gas production in Kyzyloi filed, Atobe

Oblast it is uncovered that the geographical

boundaries of the deposits go beyond the

Contractual territory specified in Mining

Allotment, the question of its extension shall be

resolved through the amendment of the Contract

without competition, as per legislation.



4.3. Contractual territory is returned as far as

production goes, as per Work Programme.



5. PROPERTY RIGHT FOR ASSETS AND INFORMATION



5.1. All tangible and non-tangible assets acquired by

the Contractor for gas production in Kyzyloy,

Aktyubinsk region, is Contractor’s property.



5.2. The property right for the assets specified in Item

5.1. of the Contract may be mortgaged or otherwise

burdened in favour of the Third Party in order to

provide financing for hydrocarbon exploration in

accordance with the State legislation.



5.3. The data on the subsoil geological structure,

mineral resources contained in them, geological

parameters of the deposits, volume of reserves,

conditions of the development and other

characteristics of Subsoil, contained in geological

reports, maps and other materials belongs to the

State if based on budget allocations, and it is

owned by Contractor, if received for the account of

Contractor’s internal funds.



5.4. The Contractor can purchase the state-owned

information on Subsoil of the Contractual Territory

from the Plenipotentiary Body on Geology and

Subsoil Use in the order determined by the State

legislation.



5.5. Geological and other information on Subsoil

received by Contractor in the process of gas

production in Kyzyloy, Aktyubinsk Region, is to be

transferred mandatory and free for storing,

systematizing and summarizing to the

Plenipotentiary Body on Geology and Subsoil Use.



5.6. The use for training, scientific, commercial and

other purposes of the geological data on Subsoil

obtained for the Contractor’s account and

transferred by him as per Item 5.5. of the Contract

will be determined on the basis of a separate

agreement between Contractor and the

Plenipotentiary Body on Geology and Subsoil Use.



5.7. After the termination of the Contract all

geological information passes to the ownership of

the State. The Contractor has to transfer all

documents and other material carriers of geological

information including the initial data free of

charge to the Plenipotentiary Body on Geology and

Subsoil Use.



6. RIGHT OF GOVERNMENT TO PURCHASE AND REQUISITION OF MINERAL RESOURCES



6.1. In case of war, natural calamities and other cases

envisaged in the laws on emergency situations, the

Government has the right to requisition a part or a

whole quantity of Mineral Resources possessed by

the Contractor. The requisition can be effected in

the amounts necessary for the State needs during

the period of the emergency situation.



6.2. The State guarantees the compensation for the

requisitioned Mineral Resources in kind or through

the payment of their value at world market prices

in effect on the requisition date (for foreign

contractors in freely convertible currency and in

national currency for national contractors).



6.3. The State has the priority right for the purchase

of gas from the Contractor at prices not exceeding

world market prices. Volume, price and purchase

terms are to be determined by separate agreement of

the Parties.



7. GENERAL RIGHTS AND LIABILITIES OF PARTIES



7.1. Contractor has the right to:

7.1.1. Produce gas on the Contractual Territory on

the exclusive basis.

6



7.1.2. Act independently and lawfully within the

framework of subsoil use on the Contractual

Territory as per the terms stated in the

Contract.



7.1.3. Use the results of his activities, including

gas, at his own discretion.



7.1.4. Build on the Contractual territory, and in case

of necessity on other land areas assigned to the

Contractor according to the established

procedure, industrial and social facilities

necessary for gas production.



7.1.5. Use general objects and communications on the

agreement with the owners both on the

Contractual territory and beyond it.



7.1.6. Hold negotiations, first and foremost, on the

extension of the Contract term as per the

procedure set forth in Item 3.3. of the

Contract.



7.1.7. Invite Subcontractors for separate kinds of work

related to gas production.



7.1.8. Assign all or a part of his rights to third

parties observing conditions of the Contract and

State legislation.



7.1.9. Terminate his activities on conditions

determined by the Contract and State

legislation.



7.1.10. In case of the Contract termination the

Contractor has the right to dispose of the

assets in his possession, if not envisioned

otherwise in the Contract.



7.1.11. Contractor’s rights can be amended based on the

Parties agreement, if that does not contradict

State legislation.



7.2 Contractor is liable to:



7.2.1. Commence implementing the Work Programme

confirmed by the Parties within 60 days from the

moment of the Contract signing.



7.2.2. Choose the most efficient methods and

technologies during gas production based on the

standards accepted in the world practice.



7.2.3. Use the Contractual territory only for the

purposes envisaged in the Contract.



7.2.4. Carry out gas production in strict conformity

with the State legislation and Work Programme.



7.2.5. Not hamper other persons to freely move within

the Contractual territory, use general

facilities and communications, carry out any

types of works, including Exploration and

Production of other natural resources except

gas, if it is not connected with special safety

conditions, and if such activities do not

interfere with gas production.



7.2.6. Observe technological plans and projects of gas

production ensuring the safety of the personnel

and population through the established

procedure.



7.2.7. Necessarily use equipment, materials and final

products produced in the State, if they fit

standards and other requirements for bids in

Kazakhstan in the order set forth by the

Government of the Republic of Kazakhstan.



7.2.8. Necessarily involve national enterprises and

organisations for work and services during gas

production, including the use of air, railway,

water and other types of transport, if their

services fit standards and other requirements

for bids in Kazakhstan in the order set forth by

the Government.



7.2.9. Give preference to the Kazakhstan specialists

and create jobs during gas production.



7.2.10. Submit the Work Programme and full information

on the process of its implementation to the

Competent Authority..



7.2.11. Contractor allocates not less than 1% of the

total amount of Exploration Expenses for

professional training of the Kazakhstan

personnel participating in the work under the

Contract. If the funs allocated for training

exceed the real need of resources for training

the balance of the amount is used to finance

priority tasks of secondary education as per

Agreement on interaction between Ministry of

education and Ministry for Energy and Mineral

Recourses, Republic of Kazakhstan. Information

on the balance of the amount is submitted to the

Competent Authorities after approving Yearly

Work Programme and the budget for the following

year of the Contract.



7.2.12. Present without hindrance necessary documents,

information and access to work sites to the

State controlling bodies when they perform

official functions, timely eliminate violations

discovered by them.



7.2.13. Transfer the information on gas production to

Third Parties, if necessary, only on a written

agreement of the other Party.



7.2.14. Pay taxes and other obligatory payments to the

budget, including penalties for environmental

pollution, on a timely basis.



7.2.15. Preserve objects of cultural and historical

importance situated on the Contractual Territory

during the activities.

7.2.16 Forecast long-term ecological effects of the activities related to the performance of the Contract. Not later than 2 years after beginning of Contract activities Contractor should submit to the Competent Authority and State bodies in charge of the environmental protection, on the basis of their written request, forecast of long term ecological effects and detailed reports on acts undertaken by Contractor to minimize such negative effects related to the performance of the Contract. Contractor at his own expense should undertake such actions to minimize negative long-term ecological effects according to reasonable request of the Competent Authority and State bodies in charge of the environmental protection.



7.2.17 Leave the Contractual Territory in the state conforming to the requirements of the mining and sanitary surveillance, subsoil and environmental protection.



7.2.18 Restore the land areas and other natural objects damaged by the Contractor's activities under the Contract to the state fit for further use in compliance with the requirements of the State legislation.



7.2.19 Include before drilled wells and wells located on the Contractual Territory in Contractor's balance for monitoring.



7.2.20 Conclude an agreement on flush safety with enterprise which has license of the Republic of Kazakhstan.



7.2.21 Take part in social and economical development of the Region at the rate of $30,000 (thirty thousand) annually, according to the agreement with Akimat of Aktyubinsk Region.



Liabilities of Competent Authority



7.3.1. Ensure execution and termination of the Contract according to the procedure and on the grounds envisaged by the State legislation.



Rights of Comptent Authority



7.4.1. Represent the State during negotiations with Contractor related to the terms of the Contract.



7.4.2. Demand regular reporting from the Contractor on the performance of the Contractual terms. Request for other information related to the Contract.



7.4.3. Inspect Contractor's gas production, including Contractor's documentation related to the contractual activities.



7.4.4. Have access to any works on the Contractual Territory with regard to gas production.



8. WORK PROGRAMME



8.1. Contractor shall carry out gas production in accordance with the Work Programme approved by the Competent Authority.



8.2. The Work Programme is prepared on the basis of feasibility analysis, state estimation of field reserves and other materials and positive practice of field development.



8.3. Contractor can propose the changes and/or amendments to be introduced in the confirmed Work Programme Changes, additions and amendments to the Work Programme are to be introduced in a written form in case of mutual agreement of the Parties.



8.4. Contractor's liabilities by years:



2005: $1,440,000 including preparation and signing of technical drafts, contract, start of field construction, construction of gas pipeline of 35 km long.



2006: $360,000. including work-over of earlier drilled 5 wells.



2007: $160,000. including historical cost payment and start of production activities.



9. PRODUCTION PERIOD



9.1. Contractor has exclusive right for production on the Contractual Territory over the validity period of the License.



9.2. Contractor starts Production according to the Work Programme after Competent State Authorities of RK approve project documentation on the field construction and development.



9.3. Contractor has to organize production in-compliance with legislation of the Republic of Kazakhstan and with order and terms appointed by the Contract. During gas production

8



Contractor must follow requirements set forth by state authorities in compliance with their competence according to the State legislation.



9.4. Contractor operates as per approved production project.



9.5. Contractor has to be guided by positive practice of field development in preparing production projects and in production itself.



10. ACCOUNTING AND REPORTING



10.1. Contractor undertakes to keep records and retain the accounting documents pertinent to gas production under the Contract during the established period in compliance with the State laws.



10.2. Contractor submits a detailed yearly report on his activities to the Competent Authority before 25th April of the next year attaching forms #2 LKU (report on accomplishment on license and contract terms).



10.3. Contractor submits reports on his activities to the state authorities according to established procedure and in time set forth in the State legislation.



10.4. The Competent Body has the right to check the observance of the Contractual terms by Contractor and send representatives to attend Contractor's gas production.



11. HYDROCARBON MEASUREMENT



11.1. Contractor according to the methods and practice used in the State makes the measurement of gas produced from the Contractual Territory.



11.2. Contractor tests the equipment and appliances used for gas measurement periodically in the presence of the Competent Authority specialist in metrology and standards.



11.3. If during a test or inspection the fault of the equipment or the appliances have been discovered and the exact deficiency period cannot be determined, then this period shall be accepted as half of the period from the previous measurement to the date when the fault has been discovered.



11.4. If Contractor considers it necessary to introduce changes in applied methods or replace measurement appliances, he has to give to the Competent Authority in metrology and standards at least a 30 days notice about it to allow his representatives to attend the procedure.



12. PERFORMING SUB-CONTRACTUAL WORK



12.1. Contractor submits to the Competent Authority, as a part of the Work Programme, a plan of sub-contractual works, a list of subcontracts for delivery of materials, equipment and services to be concluded in the following calendar year, estimation of subcontracts cost, and a list of potential Kazakhstan and foreign subcontractors.



12.2. As a rule, Contractor invites Subcontractors on a competitive basis.



12.3 Contractor is responsible for the performance of sub-contractual works in accordance with the State legislation.



13. FINANCING



13.1. Contractor undertake to fully finance his activities under the Contract as per the Work Programme agreed by the Parties.



13.2. Contractor can freely obtain credits in any currency here and abroad in order to finance his activities, if it does not contradict to the State legislation.



13.3. Contractor can have accounts both in national and foreign currencies or national and foreign banks in order to perform the Contract and obtain financing as receipts and income under the Contract.



13.4. All settlements under the Contract are to be made according the procedure determined by the State legislation.



13.5. Contractor and Subcontractors carry out operations with currency as per the State legislation on currency regulation.



14. ACCOUNTING

9



14.1. Contractor undertakes to maintain accounting of

all receipts and expenses related to the Contract

execution in compliance with the accounting

procedures determined by the State legislation.



14.2. All Contractor's ledgers and accounting documents

are available for inspection by the Competent

Authority and state organizations in compliance

with their competence determined by the State

legislation.



15. TAXES AND OTHER OBLIGATORY PAYMENTS



15.1. During Contract execution Contractor undertakes to

pay all taxes and other obligatory payments acting

at the moment of occurrence of such obligations

under rates, in terms, in sizes and the order

according to the tax laws of the Republic of

Kazakhstan.



15.2. The subscription bonus is paid by the Contractor

in the following order:

The Contractor pays a subscription bonus at a rate

of 8 (XX) (eight thousand) US dollars not later

than 30 (thirty) calendar days from the date of

signing the present Contract.

The declaration on a subscription bonus is

represented by the Contractor to tax body in a

place of registration up to 15 (fifteenth) dates

following after month in which appeared such

payment obligation.



15.3. Custom duties.

Contractor meets custom duties payment engagement

according to tariff legislation in force on the

date when there appeared such payment obligation.



15.4. Transfer pricing.

According to the tax laws Tax bodies have the

right to control Contractor’s correct of

application of the prices under transactions by

way and cases stipulated by the legislation of the

Republic of Kazakhstan regulating State control at

application of the transfer prices and at

establishment of the fact of a deviation of the

price of the transaction from a market price;

correct objects of the taxation and tax

obligations according to the legislation of the

Republic of Kazakhstan.



15.5. Tax reporting

Tax reporting of the Contractor represents the

documentation containing the information on

calculation of tax obligations of the legal entity

except for the tax reporting on subsoil user’s

payments presented by the Contractor separately.



15.6. Tax border

The Contractor is obliged to conduct the separate

account for calculation of tax obligations on the

activity which is carried out within the limits of

the Contract, and calculation of tax obligations

on the activity which is beyond the given

Contract.



15.7. Access to Data.

15.7.1. Contractor accepts that the national tax

authorities must have access to the data

related to any Contractor's bank accounts,

including those opened in foreign banks

beyond Kazakhstan.



15.7.2. Contractor has to submit to

representatives of State organs authorized

to arrange inspection all necessary

information related to Contractor’s

activities under the present Contract

electronically or in any other way.



15.8. PROVISION OF PENSIONS



Contractor charges and transfers to the Pension Fund obligatory pension payments of his employees according to the pension provision legislation acting at the moment of appearing of such obligations.



15.9. COMPENSATION OF HISTORICAL COSTS



Contractor is obliged to pay historical costs to the budget according to clauses of Agreement on Purchase of Geological Data M779 dated 02 May 2002.

As per Agreement on Purchase of Geological Data JNfs 779 dated 02 May 2002 (hereinafter -Agreement) between Committee on Geology and Subsoil Protection attached to the Ministry of Energy and Mineral Resources, Republic of Kazakhstan, and BN Munai LLP historical costs amount to USD 1,216,890 (one million two hundred sixteen thousand eight hundred ninety).

For the right to use geological data Contractor pays 0.5% of amount of historical costs which is reaches USD 6 084 (six hundred eighty four) as per Item 1.2. of the present Contract;

10



Contractor pays the balance of historical costs in the amount of USD 1 210 806 (one million two hundred ten thousand eight hundred six) by equal parts on a quarterly basis at the rate of USD 43 244 (forty three thousand two hundred forty four) starting from the third year dll full pay off. Contractor is held liable for violation of calculation order and date of payment of historical costs, tax, and other obligatory payments to the budget as per the Tax Code.



16. INSURANCE



16.1. During 90 days since the Contract Effective Date

Contractor elaborates and submits to the Competent

Authority for approval the programme of risk,

property and liability insurance related to gas

production.



16.2. The property and liability risks connected with

the following are subject to insurance:

- transportation and warehousing of cargo

delivered to the gas production sites, the

Contractor's property utilized in the process of

gas production, including leased property;

- contamination of the environment, including

land, and expenses of the environmental damage

liquidation, including land melioration and

recovery;

- general civil and legal responsibility before

Third Parties.



16.3. Contractor has to insure his personnel, including

hurt of health, life of staff and local people as

per legislation on protection of labour, including

insurance against production accidents,

occupational diseases and related injuries and

risks including treatment.



16.4. At his own discretion, Contractor chooses

insurance companies as per the State legislation.



17. LIQUIDATION AND LIQUIDATION FUND



17.1. Not later than 2 years after the Contract

Effective date Contractor submits to the Competent

Authority for confirmation a programme on the

liquidation of the consequences of his activities

under the Contract, including the liquidation cost

estimation.



17.2. The liquidation programme must include the removal

or liquidation of constructions and equipment used

in Contractor's activities on the Contractual

Territory. Liquidation, conservation of oil, gas

and other wells should be carried out in

accordance with the requirements of “ Stature of

well conservation at oil and gas fields, gas

storage facilities and at thermal water field ", "

Stature of order of oil, gas and other wells

liquidation and writing off of their

construction".



17.3. Contractor establishes the liquidation fund

sufficient for liquidation works as per the

liquidation programme amounting to 1% of

operational costs.



17.4. 1% deductions to the liquidation fund are made by

Contractor annually to a special deposit account

in any bank on the territory of Kazakhstan and

included in gas production costs. Contractor uses

the fund with the permission of the Competent

Authority coordinated with the authority on

subsoil use and protection and General Executive

Body in charge of environment protection.



17.5. If actual cost of the liquidation exceeds the

amount of the liquidation fund, Contractor ensures

additional financing for the liquidation.



17.6. If actual cost of the liquidation is less than the

amount of the liquidation fund, the surplus is

transferred to Contractor and included in the

taxed income.



17.7. If the State decides to continue the operation of

all or a part of facilities transferred to the

state ownership by Contractor after the Contract

termination, then Contractor would not be liable

for the liquidation programme, and would transfer

all rights for the assets accumulated in the

liquidation fund to the State.



18. SUBSOIL AND ENVIRONMENTAL PROTECTION



18.1. In the process of the Contract execution

Contractor must observe the national legislation

pertinent to subsoil and environmental protection,

sanitary-and-epidemiologic well being and take all

necessary measures in order to:

- protect life and health of the population;

- ensure efficient and complex use of mineral

resources;

- preserve natural landscapes and re cultivate

damaged lands and other geomorphological

structures;

- preserve the state of the subsoil upper layer to

prevent earthquakes, landslides, rise of ground

waters, ground sagging.



18.2. During hydrocarbon exploration Contractor should

give priority to the following:

11



1) Ecological requirements:

- to preserve the natural environment;

- to prevent turning lands into deserts due to

technogenic reasons;

- to prevent water and wind erosion of lands;

- to isolate lost circulation and fresh water

horizons to exclude their contamination; to prevent

subsoil waters depletion and contamination;

- other requirements as per the legislation on

subsoil use and environmental protection;

- to carry out industrial impact monitoring according

to program coordinated with State bodies in charge

of environmental protection.



2) Subsoil protection requirements:

- to ensure full leading geological subsoil studies

in order to have a reliable estimate of the

dimension and structure of hydrocarbon reserves,

deposits, and subsoil areas granted for use

including those granted for purposes not related to

production;

- to ensure efficient and complex use of Subsoil

resources on all stages of gas production; to

ensure fullness in gas recovery;

- reliable accounting of recovered and remaining

reserves of main and associated minerals and

components, processed minerals and production

wastes in field development;

- use of subsoil as per legislative requirements

related to subsoil protection against hazardous

technogenic processes in production, construction

and operation of underground facilities irrelevant

to production;

- to protect subsoils from water encroachment, fire,

blasts, collapses and other factors deteriorating

their quality or complicating field operation and

development;

- to protect subsoil from contamination during

production;

- to observe the procedure of suspension and

termination of gas production, envisaged by Section

27 of the Contract, and facility abandonment as per

Section 17 of the Contract;

- to ensure the observance of sanitary-and-

epidemiologic and ecological requirements in

stocking and placing industrial and household

wastes in order to prevent their accumulation on

drainage basins and near ground water deposits.



3) Sanitary-and-epidemiologic requirements:

- organize sanitary-protective belt (SPB);

- within the bounds of sanitary pollution belt keep

concentration of surface hazardous substances not

exceeding maximum concentration limit for

population talking into account the background

pollution;

- arrange laboratory control of air condition at

working area and hazardous negative physical

industrial factor at workplace;

- ensure construction of SPB;

- ensure improvement of SPB;

- all equipment, pipelines, chemicals etc. should

be from those permitted for use by authorities of

sanitary-epidemiological surveillance;

- ensure sanitary and hygienic measures aimed at

preserving sanitary and hygienic conditions,

prevention of industrial diseases and traumatism;

- creation of conditions favorable for improving

the workers’ health.

Contractor ensures Ml and reliable geological,

hydrogeological, ecological, sanitary-and-

epidemiologic, engineering-geological and

technological studies of gas production object.



18.3.During Contract execution Contractor should

consider that the necessary ecological basis for

carrying out of operations on subsoil use is the

positive conclusion of the State ecological

examination for carrying out of these operations

and given out on its basis the sanction to wildlife

management by the agencies in charge of environment

protection.

18.3.1. The contractor is obliged to provide

granting for the state ecological

examination of all design documentation

containing an estimation of influence of

planned activity on an environment and

section "Environment protection” arranging

actions for the period of realization and

termination of operations on subsoil use or

preservation of deposit development.



18.4. Contractor must keep monitoring of Subsoil and

environment in order to study the impact resulted

from the activities under the Contract and take

timely preventive measures in case of a negative

effect. Data of industrial monitoring and

reporting on environment influence should be

transferred to special representatives in charge

of environment protection.



18.5. The Contractor must eliminate the damage to the

environment if any, perform restoration works and

fully compensate an inflicted damage to nature.

12



18.6. State control of observance of nature and

environmental legislation is executed by

authorised state services.



18.7. Contractor performs works preservation of natural

environment on the Contractual Territory.



18.8. After termination of the Contract or in case of

return of Contractual Territory stage by stage,

Contractor return S it in a state fit for further

direct use in accordance with the State

legislation.



18.9. Any damage (deterioration) of the environmental

conditions and the Contractual Territory during

the work under the Contract is recovered on the

Contractor’s account to the state fit for further

direct use.



18.10. In case of excess pollutant emissions and

emergency conditions Contractor should urgently

inform Central agency in charge of environment

protection and territorial bodies of State

epidemiologic inspection.



19. POPULATION AND PERSONNEL SAFETY



19.1. During gas production under the Contract

Contractor must ensure observance of the operation

safety rules and regulations as per the State

legislation, as well as take measures of warning

and liquidation of accidents and professional

diseases,



19.2. Gas production is prohibited if it is hazardous

for human health and life.



19.3. Specially authorised state body controls

observance of the rules and regulations for

technical safety and industrial sanitary during

gas production.



19.4. The main safety requirements of gas production

include the following:

- access to the works for people with special

training and qualification, the mining works

management should have relative education and

certificate of health according to acting order

of the Agency of the Republic of Kazakhstan in

charge of health protection;

- provision of the persons participating in gas

production with work outfit and means of

individual and collective protection;

- provision of the workers totally with sanitary

accommodation space, high quality drinking water

and food;

- use of machinery, equipment and materials

corresponding to the safety requirements and

sanitary standards;

- keeping records, due storing and utilizing

explosives and explosion appliances, their

correct and safe use;

- a complex of geological, mining and other

surveys necessary to ensure a technological work

cycle and forecasting of dangerous situations;

- approval of development draft with territorial

form of state control on safety work completion;

- radiation protection;

- timely filling in technical documents and plans

with the data on accidents liquidation,

verifying the boundaries of safe operation

zones;

- keeping of projects and technological

specifications of field development and

construction.



19.5. Contractor’s management has to urgently suspend

works, provide transportation of the people to a

safe place and inform the Competent and local

executive authorities in case of hazardous

situation for the workers or the population.



19.6. Contractor compensates for the damage to health of

people caused at work as per the State

legislation.



19.7. Contractor has to develop program of actions on

accident precaution and other dangerous situations

during hydrocarbon operations and approve them in

the Agency for Emergency Situations of the

Republic of Kazakhstan.



19.8. State control over observance of the legislation

of the Republic of Kazakhstan on maintenance of

sanitary and epidemiological well-being of the

population is arranged by bodies of the state

sanitary-and-epidemiological supervision of the

Republic of Kazakhstan.



20. CONTRACTOR’S RESPONSIBILITY FOR VIOLATION OF CONTRACT TERMS



20.1. Contractor’s deals are considered illegal on

reasons envisioned by the State legislation.



20.2. Contractor is fully responsible for the impact of

actions specified in Items 20.1. of the Contract

before Competent Authority and Third Parties.

14





25. SETTLEMENT OF DISPUTES



25.1. The Parties take all measures to resolve all

disputes and contradictions relating to the

Contract through negotiations.



25.2. If during thirty days the dispute cannot be

resolved through negotiations, then the Parties

appeal to the State court authorised to resolve

such dispute in compliance with the laws.





26. GUARANTEE OF CONTRACT STABILITY



26.1. The provisions of the Contract remain the same

during the whole term of the Contract validity.



26.2. Changes or amendments to the laws deteriorating

Contractor’s status passed after the Contract had

been concluded are not applicable to the

Contract.



26.3. In case of the changes and amendments in the

legislation leading to impossibility of further

work under the Contract, the Parties introduce

respective changes to restore initial balance of

the Parties interests in a written agreement.

Changes in parity of initial economic interest of

the Parties is determined by the authorized

entity and/or Contractor.



27. TERMS OF CONTRACT TERMINATION AND SUSPENSION



27.1. The Competent Authority in an obligatory order

suspends the Contract validity, if there is

direct threat to the lives of people working or

living in the area effected by the works related

to the Contract.



27.2. The Competent Authority has the right to suspend

the Contract validity in case of:

- Contractor’s activities that are not envisaged

by the Contract or Work Programme;

- violation by the Contractor of the State laws

during his activities regarding subsoil and

environmental protection and work safety;

- Contractor’s violation during his activities of

the order of tax and other obligatory dues

payment under the Contract;

- Transfer of full of partial rights under the

Contract to a Third Party violating Section 23

of the Contract;

- Contractor’s interruption of work under the

Work Programme for more than 90 days except

force-majeure cases;

- Violation of confidentiality terms under the

Contract.



27.3. In case of Contract suspension the Competent

Authority in written notifies the Contractor on

the reasons of such suspension and set reasonable

term for their elimination.



27.4. After the Contractor informs of the elimination

of factors causing the Contract suspension, the

Contract is renewed.



27.5. Contract is terminated prematurely only in the

following cases:

- if Contractor refuses to eliminate or does not

eliminate within the term set by Competent

Authority the factors which have caused the

decision on termination of the Contract for

production;

- if Contractor does not start subsoil use within

the timeframe indicated in the Contract;

- In case of impossibility to remove the factors

that caused suspension of subsoil use

operations associated with the people’s health

and life hazard;

- In case of Contractor’s considerable violation

of commitments under the Contract or Work

Programme;

- In case of Contractor’s bankruptcy as per

effective RK legislation, excluding cases of

mortgage on the subsoil rights in compliance

with the effective laws;

- if the Contract is considered invalid according

the legislation on subsoils;



27.6. The Contract is terminated in compliance with

Item 27.4. of the Contract in 60 days after the

Contractor has received a written notification of

the Competent Body on a premature termination of

the Contract.



27.7. The Parties shall not be released from current

obligations that remained unfulfilled by the

moment Contractor receives the notification about

the Contract termination.

14



25. SETTLEMENT OF DISPUTES



25.1. The Parties take all measures to resolve all

disputes and contradictions relating to the

Contract through negotiations.



25.2. If during thirty days the dispute cannot be

resolved through negotiations, then the Parties

appeal to the State court authorised to resolve

such dispute in compliance with the laws.



26.GUARANTEE OF CONTRACT STABILITY



26.1. The provisions of the Contract remain the same

during the whole term of the Contract validity.



26.2. Changes or amendments to the laws deteriorating

Contractor’s status passed after the Contract had

been concluded are not applicable to the

Contract.



26.3. In case of the changes and amendments in the

legislation leading to impossibility of further

work under the Contract, the Parties introduce

respective changes to restore initial balance of

the Parties interests in a written agreement.

Changes in parity of initial economic interest of

the Parties is determined by the authorized

entity and/or Contractor.





27. TERMS OF CONTRACT TERMINATION AND SUSPENSION





27.1. The Competent Authority in an obligatory order

suspends the Contract validity, if there is direct

threat to the lives of people working or living in

the area effected by the works related to the

Contract.



27.2. The Competent Authority has the right to suspend

the Contract validity in case of:

- Contractor’s activities that are not envisaged

by the Contract or Work Programme;

- violation by the Contractor of the State laws

during his activities regarding subsoil and

environmental protection and work safety;

- Contractor’s violation during his activities of

the order of tax and other obligatory dues

payment under the Contract;

- Transfer of Ml of partial rights under the

Contract to a Third Party violating Section 23

of the Contract;

- Contractor’s interruption of work under the Work

Programme for more than 90 days except force-

majeure cases;

- Violation of confidentiality terms under the

Contract.



27.3. In case of Contract suspension the Competent

Authority in written notifies the Contractor on

the reasons of such suspension and set reasonable

term for their elimination.



27.4. After the Contractor informs of the elimination of

factors causing the Contract suspension, the

Contract is renewed.



27.5. Contract is terminated prematurely only in the

following cases:

- if Contractor refuses to eliminate or does not

eliminate within the term set by Competent

Authority the factors which have caused the

decision on termination of the Contract for

production;

- if Contractor does not start subsoil use within

the timeframe indicated in the Contract;

- In case of impossibility to remove the factors

that caused suspension of subsoil use operations

associated with the people’s health and life

hazard;

- In case of Contractor’s considerable violation

of commitments under the Contract or Work

Programme;

- In case of Contractor’s bankruptcy as per

effective RK legislation, excluding cases of

mortgage on the subsoil rights in compliance

with the effective laws; if the Contract is

considered invalid according the legislation on

subsoils;



27.6. The Contract is terminated in compliance with Item

27.4. of the Contract in 60 days after the

Contractor has received a written notification of

the Competent Body on a premature termination of

the Contract.



27.7. The Parties shall not be released from current

obligations that remained unfulfilled by the

moment Contractor receives the notification about

the Contract termination.

15



28. LANGUAGE OF CONTRACT



28.1. The text of the Contract is made in the Kazakh and

Russian languages, and all copies have equal

value.



28.2. In case of contradictions in different versions

the document in the Russian language has the

prevailing effect,



28.3. The Parties agree that the Kazakh and Russian

languages are used as languages of communication.

Since the Contract Effective Date technical

information and information pertaining to gas

production is prepared in Kazakh and Russian.



28.4. Documentation and information related to

administrative activities shall be prepared in

Kazakh and Russian.





29. ADDITIONAL TERMS



29.1. All notices and documents required in connection

with the Contract performance are considered as

submitted and delivered in due order to each of

the Parties under the Contract, only when

received.



29.2. Notices or documents shall be handed in personally

or posted, by registered post, fax, telex or

telegraph to the following addresses:





Competent Authority; Contractor:



Ministry for Energy Limited Liability

and Mineral Resources Partnership BN-Munai

of the RoK

22 Kabanbai Batyr Str., 65, Tulebaev Str.,

Astana, 473000 Apartment 43,

Almaty, 480091

Fax: (3172) 786865 Fax: (3272) 50 70 34

Tel: (3172) 786803 Tel: (3272) 50 70 33







29.3. If the Parties addresses change, each Party must

give a written notice about it to the other Party.



29.4. All annexes to the Contract are considered as its

inseparable part. In case of contradictions

between the provisions of the supplements and the

Contract, the Contract has the prevailing

significance.



29.5. The Parties in a written form agree amendments or

additions to the Contracts that do not contradict

the Contract terms. Such an agreement is an

inseparable part of the Contract.



The Contract was concluded on 5 (fifth) of May, 2005, in Astana, Republic of Kazakhstan by the authorized representatives of the Parties.



Stamp of the Ministry of Stamp of “BN Munai” LLP

Energy and

Mineral Resources



Signature: Signature:



"Izmuhambetov B.S." " David Robson "

__________________ __________________



First Vice Minister Director



Izmuhambetov B.S. David Robson



Annex 1 to Contract N 1734 concluded on 05.05.2005



Resolution of the Government, Republic of Kazakhstan,

on transfer of rights for subsoil use of 19 July 2001



[Annex omitted.]



The document attached to this Annex 1 consists of a resolution of the

of the Government of the Republic of Kazakhstan dated July 19, 2001

transferring the rights for subsoil use from the company Kazakhgas to BN-Munai LLP



Annex 2 to Contract N 1734 concluded on 05.05.2005



License for subsoil use in Kazakhstan # MG 980 (oil)

issued to Kazakhgas dated June 12, 1997





[Annex omitted.]





The document attached to this Annex 2 consists of a license for subsoil use in Kazakhstan # MG 980 (oil) issued to Kazakhgas dated June 12,1997

Annex 3 to Contract N 1734 concluded on 05.05.2005



Mining Allotment



[Annex omitted.]



The document attached to this Annex 3 consists of a Mining Allotment issued to Kazakhgas dated June 12, 1997 and a Mining Allotemnt issued to BN-Munai LLP dated June 2002

Annex 4 to Contract N 1734 concluded on 05.05.2005



Agreement on Purchase of Information





[Annex omitted.]





The document attached to this Annex 4 consists of an Agreement on Purchase of Geological Data No. 779 dated May 2, 2002 between the Committee of Geology and Subsoil Conservation and BN-Munai LLP regarding the payment of historical costs in order to receive geological information





Annex 5 to Contract N 1734 concluded on 05.05.2005

Work Programme



[Annex omitted.]





The document attached to this Annex 5 consists of a Work Programme approved by the Ministry of Energy and Mineral Resources, Republic of Kazakhstan to carry out gas production operations for the period of 2004-2007 and the Financial-Economic model for the planned Kyzyloi gas field development

Annex to contract N 1734 concluded on 05.05.2005

Concordance and Experts





[Annex omitted.]





The document attached to this Annex 6 contains letters of state authorities, expert opinions and approvals necessary to grant subsoil use right to BN-Munal LLP in connection with the Kyzyloi Gas Contract



Annex 7 to Contract N 1734 concluded on 05.05.2005

Minute of Working Group





[Annex omitted.]



The document attached to this Annex 7 contains the minutes of the Working Group of the Ministry of Energy and Mineral Resources, Republic of Kazakhstan wherein they discuss and approve the terms of the Kyzyloi Gas Production Contract

State Registration No 2480

dated November 08, 2007























Addendum No 1 to the Contract

No 1734 dated May 05, 2005

for gas production on Kyzyloi field

within blocks XXIX-23-B (partially), C (partially), E

(partially), F (partially), XXIX-24-A (partially), D

(partially)

in Aktobe Region

between

Ministry of Energy and Mineral Resources of Republic of

Kazakhstan

(Authorized Body)

and

Limited Liability Partnership “BN Munai”

(Contractor)

in compliance with the License (series MG) No 980 dated June 12,1997

The present Addendum No 1 to the Contract No 1734 dated 05.05.2005 for gas production on Kyzyloi field within blocks XXIX-23-B (partially), C (partially), E (partially), F (partially), XXIX-24-A (partially), D (partially) in Aktubinsk oblast is made on November 08, 2007 between the Ministry of Energy and Mineral Resources (hereinafter referred to as the Authorized Body) and Limited Liability Partnership "BN Munai" (hereinafter referred to as the Contractor) in compliance with the License (series MG) No 980 dated 12.06.1997.





Preamble



Whereas “BN Munai" LLP intends to complete the gas pipeline construction on the territory of Kyzyloi field and increase the volume of gas capacity, the Contractor has made a request addressed to the Authorized Body for prolongation of the License's and Contract's validity period for additional 7 (seven) years till 13.06.2014.; the Authorized Body's Expert Commission engaged in considering subsoil user's requests related to changes to the terms and conditions of Licenses and Contracts (extract from Minutes No 2 dated January 28, 2005), has made the decision to prolong the production period on the territory of Kyzyloi field in Aktubinsk oblast for additional seven years till 13.06.2014.

The Authorized Body and the Contractor have agreed to make the following additions and changes to the Contract:



Paragraph 3.2 of Section 3 “Validity period of the Contract" shall be made in the following wording: “The Contract validity period shall be prolonged for additional seven years and shall expire on June 13, 2014".



Paragraph 3.3. of Section 3 “Validity period of the Contract' shall be made in the following wording: “The Contract validity period shall be prolonged upon the Parties’ mutual consent according to the current legislation of the State".



Sub-paragraph 7.2.7 of paragraph 7.2. of Section 7 shall be made in the following wording: "It shall be obligatory to use equipment, materials and integrated/finished products manufactured in the Republic of Kazakhstan, provided that they comply with the requirement of the Republic of Kazakhstan legislation on Technique Regulation, in the volume not less than 30% of the total cost of goods/products necessary for performance of works under the Contract (on a tender basis) within the territory of the Republic of Kazakhstan according to the order specified by the Government of the Republic of Kazakhstan".



Sub-paragraph 7.2.8 of paragraph 7.2 of Section 7 shall be made in the following wording. “It is obligatory to attract kazakhstani organizations for performance of works and services during subsoil use operations, including usage of air, railway, water and other types of transport, provided that such services correspond to the standards, price and quality parameters specified for analogues works and services rendered by non-residents of the Republic of Kazakhstan, in the volume not less than 90% of the total cost of works and services necessary for performance of works under the Contract (on a tender basis) within the territory of the Republic of Kazakhstan according to the order specified by the Government of the Republic of Kazakhstan.



Sub-paragraph 7.2.9 of paragraph 7.2. of Section 7 shall be made in the following wording. “During gas production period to create jobs and employ kazakhstani personnel in the following proportions:



-Senior managers not less than 90%

-Managers — not less than 90%

-Technical personnel — not less than 90%

-Trained/skilled workers — not less than 95%.



Paragraph 7.2 shall additionally include sub-paragraph 7.2.22 of the following wording: “To provide kazakhstani personnel with such work conditions and remuneration as provided for to the expatriated employees being employed, including personnel engaged in subcontract works".

Paragraph 7.2 shall additionally include sub-paragraph 7.2.23 of the following wording: “To enter and comply with the terms and conditions with Memorandum of Understanding in relation to extractive industries transparency initiative in the Republic of Kazakhstan”.



Paragraph 8.4. shall additionally include sub-paragraph 8.4.1. of the following wording: “The investment amount for a prolonged period shall be 2 687 000 US dollars. The Working program shall include the following types of works by years:



No | Description of works | Unit | Scope of works | Cost of works | Total cost | 1st year | Scope | Cost | 2nd year | Scope | Cost | 3rd year | Scope | Cost | 4th year | Scope | Cost | 5th | Scope | Cost | 6th year | Scope | Cost | 7th year | Scope | Cost | 1 | Well-workover operation | th.$ | 7 well | 100 | 700 | 1 | 100 | 1 | 100 | 1 | 100| 1 | 100| 1 | 100| 1 | 100| 1 | 100 | 2 | Drilling of production of wells | th.$ | 1 well | 450 | 450 | 1 | 450 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | Improvement and expansion of gas gathering and handling systems | th.$ | 500 | 500 | 0 | 500 | 0 | 0 | 0 | 0 | 0 | 4 | Past costs according to Contract No 1734 | th.$ | 173 | 1037 | 173 | 173 | 173 | 173 | 173 | 172 | 5 | Total | th.$ | 2687 | 723 | 773 | 273 | 273 | 273 | 272 | 100 | 6 | Gas capacity | min.m3 | 7 well | 197,5 | 271,1 | 253,8 | 225,6 | 199,8 | 176,1 | 164,6 |



Appendix No 5a-“Working Program for gas production on Kyzyloi filed within blocks XXIX-23-B (partially), C (partially), E (partially), F (partially), XXIX-24-A (partially), D (partially) in Aktubinsk oblast for a seven-year period till 13.06.2014” shall be the integral part of this Addendum.



This Addendum No 1 shall be the integral part of the Contract No 1734 dated 05.05.2005 and signed on November 08, 2007 in Astana city, Republic of Kazakhstan by the authorized representatives of the Parties under the Contract.



Authorized Body



“Batalov Askar Bulatovich”



Batalov Askar Bulatovich



Executive Secretary

Ministry of Energy and

Mineral Resources of RK



“George Mirtskhulava”



George Mirtskhulava



Director

“BN Munai” LLP





Appendix No 5-a

“APPROVED”

by George Mirtskhulava,

Director of “BN- Munai” LLP

June 05,2007















WORKING PROGRAM

for gas production on Kyzyloi field

within blocks

XXIX-23-B (partially), C (partially),

E (partially), F (partially), XXIX-24-A (partially),

D (partially)

in Akubinsk oblast

for a seven-year period till 13.06.2014.





















Almaty, April 2007

























Explanatory Notes to the Working Program

for gas production on kyzyloi field for a seven-year period till 13.06.2014





* Details of Working Program reduced.























































Deputy Engineering Director O.N. Yurikov

“APPROVED”

by G. Mirtskhulava,

Director of “BN-Munai” LLP

June 05,2007





Working Program for production of gas on Kyzyloi field for a seven-year period till 13.06.2014 Contract No1734 dated 05.05. 2005, License MG No 980 dated June 12,1997







* Data for Working Program redacted



















G. Wall,

Deputy Director, technical matters

April 17, 2007