KIO COMPLETED UNIT 3 ENHANCEMENT PROJECT, 29.04.2003

AKSAI, Western Kazakhstan Oblast, 29 April 2003 - The Karachaganak Integrated Organisation (KIO) has successfully completed a $10 million enhancement project for its existing production plant Unit 3.

The work carried out included the installation of parallel condensate lines and new control facilities as well as the addition of a fourth flash gas compressor.

The enhancement not only has allowed the condensate production at Unit 3 to increase but also has significantly improved the environmental performance of the facility.

KIO HSE Director Jack Hinton said: "These environmental improvements have allowed KIO to re-process and export the excess gas that otherwise would have been flared. This is good for both the environment and the economy of the country."

The Unit 3 enhancement project is part of a continuing, wide-scale KIO environmental programme. Another example of this initiative has been the introduction of "Green Burner" technology to reduce to a minimum the emissions into the atmosphere of carbon monoxide and soot on the occasions when flaring is required at the wells.

Over the past three years, KIO has invested over $100 million in various environmental initiatives.

"KIO will continue to incorporate the emissions control technology in Karachaganak to achieve even better environmental performance", said Jack Hinton.