JPMorgan - KASE

expenditures or investments. The agreement provides that if less than all of the required
investment were made by the required date, we could be required to pay a penalty of 15% of
the shortfall to the Kazakhstani government. We believe that, as of December 31, 2001, we had
met this commitment. The 2001 expenditures and commitments remain subject to audit and
certification by the government of Kazakhstan under the terms of the HOP privatization
agreement.
Refining
Through our indirect ownership interest in HOP, we own and operate the Shymkent refinery, and
market the refined products it produces. The Shymkent refinery had a rated crude oil throughput
capacity of approximately 140,000 BOPD as of September 30, 2002, and operated at an average
of approximately 51% of its capacity for the nine months ended September 30, 2002.
The Shymkent refinery was commissioned between 1985 and 1987, with the completion of an
atmospheric distillation unit for the initial separation of crude oil, catalytic hydro treaters for the
removal of impurities from naphtha, jet and diesel fuel, and a catalytic reformer unit for the
enhancement of octane levels in gasoline.
The following table sets forth the amounts, average sale prices and revenues for refined products
produced at the Shymkent refinery for the years ended December 31, 2001 and 2000 and the
nine months ended September 30, 2002 and 2001:
2001 2000
Product Produced
Amount
Sold
Average
Price
Revenue
Amount
Sold
Average
Price
Revenue
(Tonnes) ($/tonne) ($000’s) (Tonnes) ($/tonne) ($000’s)
Gasoline ..................... 548,503 207.54 113,838 315,327 215.31 67,893
Diesel........................ 710,029 178.30 126,600 433,222 185.30 80,274
Heavy fuel oil (mazut) ......... 1,045,682 50.00 52,284 566,948 49.79 28,230
LPG ......................... 107,079 92.71 9,927 63,478 70.56 4,479
Jetfuelandkerosene .......... 57,829 231.84 13,407 16,637 226.30 3,765
Totalselfrefined .............. 2,469,122 128.00 316,056 1,395,612 132.30 184,641
Resale of purchased refined
products ................... 83,695 154.15 12,902 148,752 128.31 19,087
Total refined product sales ..... 2,552,817 128.86 328,958 1,544,364 131.92 203,728
Product Produced
Nine Months Ended September
30, 2002
Amount
Sold
Average
Price
Revenue
Nine Months Ended September
30, 2001
Amount
Sold
Average
Price
Revenue
(Tonnes) ($/tonne) ($000’s) (Tonnes) ($/tonne) ($000’s)
Gasoline ..................... 571,753 134.80 77,075 453,923 205.49 93,277
Diesel........................ 760,029 117.85 89,569 819,848 82.35 67,511
Heavy fuel oil (Mazut) ......... 786,785 39.96 31,443 270,879 53.70 14,545
LPG ......................... 86,607 74.88 6,485 386,834 181.83 70,338
Jetfuel ...................... 142,241 213.87 30,421 38,652 234.71 9,072
Totalselfrefined .............. 2,347,415 100.11 234,993 1,970,136 129.30 254,743
Resale of purchased refined
products ................... 89,025 61.59 5,483 69,628 144.07 10,031
Total refined product sales ..... 2,436,440 98.70 240,476 2,039,764 129.81 264,774
In addition to revenue generated from the refining and sale of product derived from acquired
feed stock, the refinery also refines crude on behalf of third parties, for which it derives a fee.
Total processing fees earned in 2001 amounted to $11.0 million compared to $11.9 million in
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