Contracts

Our strategic focus is driving production growth in the Cheleken Contract Area and, given this goal, our field development plan calls for the phased installation of infrastructure including additional multiple wellhead platforms together with all related infield lines during the course of the PSA. During 2010-12, our estimated capital expenditure on oil infrastructure is US$600-700 million with spending on gas development over the same period expected to be an additional US$150-170 million.

Given our objectives, in May 2010 we announced contract awards for two additional production platforms to be built in late 2011 and early 2012. The Dzhygalybeg (Zhdanov) A platform will be able to support either a platform-based rig or a jack-up rig, and the Dzheitune (Lam) C platform will support a jack-up rig. A new 30” 40km subsea trunkline and the Phase 2 expansion of the Central Processing Facility are also due to be completed during the second half of 2010.

Additionally in early 2010, we awarded a contract for a Super M2 jack-up rig which will be a newly-built, powerful rig, capable of drilling wells faster and more efficiently. This is due to be completed and mobilised in Q4 2011.

Our contractors, Saipem, are expected to deliver the final Front End Engineering Design (FEED) study for a potential onshore gas treatment plant by Q3 2010.

Current major projects include: