JPMorgan - KASE

In addition the Corporation has now assumed the rights and obligations under the ShNOS
privatization agreement, whereby the government of Kazakhstan privatized ShNOS. Under this
agreement, the Corporation is required to invest, or cause ShNOS to invest, the Tenge equivalent
of $150 million in capital expenditures or investments by December 31, 2001. If the expenditure
level is not met, the Corporation may be required under the terms of the agreement to pay a
penalty of 15% of the shortfall to the government of Kazakhstan.
As of December 31, 2001, the Corporation believes it has met this commitment. The 2001
expenditures and commitments remain subject to audit and certification by the government of
Kazakhstan under the terms of the privatization agreement.
4 Segmented Information
Following the acquisition of ShNOS in 2000, the Corporation became an integrated oil and gas
company. All of the commercial activity of the Corporation is concentrated in the Republic of
Kazakhstan in Central Asia.
On a primary basis the business segments are:
Š Upstream comprising the exploration and production of crude oil resources in Kazakhstan for
further sale.
Š Downstream comprising the refining and marketing of crude oil into refined products for
further sale.
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