Success Through Partnership and Innovation

VIII KAZENERGY Eurasian Forum

Tim Miller

Tengizchevroil, General Director

Astana,

8 October 2013

© Tengizchevroil 2013 2

Success Through Partnership and Innovation

Kazakhstan’s Leading Producer

Current Partners | %

30% of Kazakhstan’s

total oil output

Chevron 50

ExxonMobil Kazakhstan Ventures Inc. 25

KazMunaiGas 20

LukArco 5

TCO established as a Kazakhstan

Joint Venture between Republic of

Kazakhstan and Chevron on a

parity basis (40 year concession)

3 400+ employees

14 000+ contractors

On 6 April, 1993, President N. Nazarbayev signed Presidential

Decree No 1168 establishing Tengizchevroil JV

© Tengizchevroil 2013 3

Success Through Partnership and Innovation

Our Partnerships Create Results

0

4

8

12

16

20

24

28

1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 June

KTL SGP

Crude Production | Million tonnes per year World-class equipment reliability and

production efficiency at KTL and SGP

Successful completion of KTL and SGP

Turnaround

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Success Through Partnership and Innovation

Annual Payments to the Republic of Kazakhstan

0

3,000

6,000

9,000

12,000

15,000

1993 1998 2003 2008 2013

Annual payments; million USD; as of August, 2013

Since 1993 TCO contributed over

$81 billion US Dollars to the

Kazakhstani economy

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Success Through Partnership and Innovation

Supporting Local Business

Kazakhstani Goods &

Services Purchased | Billion US Dollars

2010 1.3

2011 1.6

2012 1.8

2013 | AUGUST 1.4

© Tengizchevroil 2013 6

Success Through Partnership and Innovation

Social Investment

Total (since 1993) 830 000 000

2013 Egilik Budget 25 000 000 2013 Community

Investment

Program 1 300 000

Social Investment | US Dollars

© Tengizchevroil 2013 7

Success Through Partnership and Innovation

TCO Creation Spurred Foreign Direct Investment

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Success Through Partnership and Innovation

Global Population Growth Will Fuel Energy Demand

Global population to increase by 1.7 billion by

2035 – mainly in Asia and Africa. Source: IEA, World Energy Outlook

2012, New Policies Scenario

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Success Through Partnership and Innovation

Future Energy Supply Mostly From Conventional Sources

By 2035, global energy demand

to increase by 35%

80% of supply to come

from conventional sources of

energy

Source: IEA, World Energy Outlook 2012,

New Policies Scenario

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Success Through Partnership and Innovation

Technology Innovation

The innovative development and use of

technology will be the first way in which we

create future opportunity.

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Success Through Partnership and Innovation

Process Innovation

© Tengizchevroil 2013 12

Success Through Partnership and Innovation

Environmental Innovation

Almost 6000 cubic

meters of waste water

to be recycled and

reused

Emissions Improvement

Emissions reduction | per tonne of oil 70%

Reduction in gas flaring 92%

© Tengizchevroil 2013 13

Success Through Partnership and Innovation

Kazakhstan’s Future

Kazakhstan among Top 15 World

Leaders in Proven Oil Reserves

Saudi Arabia

Venezuela

Canada

Iran

Iraq

Kuwait

UAE

Russia

. Libya

Nigeria

Kazakhstan

United States

Qatar

China

Brazil

Source: International Energy Agency

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