�W�޹�܊“ِِ��

�W�޹�܊“ِِ�� OVERSEAS AND PETROKAZAKHSTAN INC.

HAVE ENTERED INTO SETTLEMENT AGREEMENT ON TURGAI PETROLEUM ISSUE

 

On August 24, 2010 �W�޹�܊“ِِ�� Overseas Kumkol B.V. ("�W�޹�܊“ِِ��"), 100% indirectly owned by OAO �W�޹�܊“ِِ��, and PetroKazakhstan Inc. ("PKI"), 67% indirectly owned by CNPC Exploration and Development Ltd. (“CNPC”) and 33% indirectly owned by JSC KazMunaigas Exploration Production, have completed the settlement stipulated by the Settlement Agreement signed on August 16, 2010 (the "Agreement") on the dispute regarding their 50/50 Joint Venture Turgai Petroleum ("Turgai") in Kazakhstan.

The dispute between �W�޹�܊“ِِ�� and PKI arose in 2005. On 28th October, 2009 the Stockholm Chamber of Commerce confirmed �W�޹�܊“ِِ��’s rights in its Final Award and awarded certain damages to be paid by PKI to �W�޹�܊“ِِ��.

According to the Agreement the ownership structure of Turgai remains unchanged: PKI and �W�޹�܊“ِِ�� will continue to jointly own Turgai in equal shares. As part of amicable settlement, PKI has paid to �W�޹�܊“ِِ�� the amount of approximately US$438 million on account of awarded damages.

The settlement of the dispute regarding Turgai represents the opening of a new relationship and further strategic cooperation between �W�޹�܊“ِِ�� and CNPC.