Tengizchevroil Overview

Tim Miller General Director Tengizchevroil

May 11, 2011

Kazakhstan’s Leading Producer

 On 6 April, 1993, President Nazarbayev signed Presidential Decree No 1168 approving the Tengiz Project Agreements

 TCO established as a Kazakhstan Limited Liability Partnership between Kazakhstan national oil company and Chevron on a parity basis (40 year concession)

 1993 Oil Production – 2,500 TPD

 1Q11 Production – ~ 75,000 TPD

 ~30% of Kazakhstan’s total oil output

 3,200+ employees

 10,000+ contractors

 Present Shareholders – Chevron (50%), ExxonMobil (25%), KazMunaiGas (20%), LukArco (5%) -- 81% voting provision

 Be the Leader in Safety and Environmental Performance

 Develop Our Workforce

 Be Respected In Kazakhstan Community

 Achieve Superior Operational Performance

Reservoir Facilities Transport

 Reservoir liquids  Liquids processed  Crude and other (mix of oil, gas, into crude oil, products

NGL’s, H2S, CO2, NGL’s, dry gas, transported via etc.) produced and sulfur pipelines, rail, and from wells and tankers to world sent to the markets facilities

Tengiz  Deepest developed super - giant oil field  Reservoir is 12 miles x 13 miles  Oil column is 1 mile thick

 26 billion barrels oil in place  13% hydrogen sulfide crude

Korolev  2 billion barrels oil in place  Production started in 2001  15 % hydrogen sulfide crude

ATYRAU

NEW KARATON KULSARY KOSCHAGYL

KAZAKHSTAN RUSSIA Tengiz

UZBEKISTAN

TURKMENISTAN TENGIZ

CASPIAN SEA

■ 11+ million hours without a TCO workforce DAFW ■ An all time record in overall workforce TRIR

Worldwide Oil & Gas Extraction Industry*

1.60

1.40

1.20 Manhours 1.00

0.80

0.60

0.40 Total Workforce = TCO + Contractors 0.20

0.00 Incident Rate per 200,000 200,000 per Rate Incident 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

* Industry Data from the U.S. Dept. of Labor, Bureau of Labor Statistics

 Continuous positive trend in the number of motor vehicle safety incidents  Driving Monitors, Journey Management, Driver Training  No serious and catastrophic accidents in 2010

Recordable MVCR 5 Year Trend

1.2 0.97 1.0 0.86 0.8 0.58 0.6 0.38

0.4

MVC Rate per MM miles MM per Rate MVC

0.2 0.35 0 0.0 2005 2006 2007 2008 2009 2010

9 From 2000 to 2010, TCO has achieved: 8  74% reduction in air emissions per tonne of oil

7  36% reduction in total emissions  147% increase in oil production

4 (kg/tonne) 3

2 Total Emissions per TonneTotal Oil of 1

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

2001 - Post Gas Processing Expansion Project

2,000,000

1,800,000 2009 - After Vent

) Gas Recovery Project 1,600,000

1,400,000 tonnes 1,200,000

1,000,000

800,000

Gas Flared ( Flared Gas 600,000

400,000

200,000

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

© Tengizchevroil 2011 10 Superior Operational Performance ■ 15% year-on-year production growth in 2010 (25.9 million tonnes) vs. 2009 (22.5 million tonnes) ■ World-class equipment reliability and production efficiency

Crude Production Million tonnes per year 26 24 22 Train 5 Program 12 20 SGI-SGP Start-up $1 billion 18 $7.4 billion 16 KTL 1 & 2 14 Debottlenecking 12 $150 million 10 KTL 2 Start-up 8 $187 million

6 KTL 1 4 Operation 2 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mar

■ 2010 Total Payments Exceeded $9.6 billion ■ Cumulative Payments to Kazakhstan Exceed $48.3 billion

14,000 60,000

Payments to Employees and Kazakh Goods &

13,000 55,000 $MM

Services (includes salaries, Rail and Pipeline Tariffs,

$MM - 12,000 payments to local suppliers and other) 50,000 - 11,000 Distribution to Kazakhstan 45,000 10,000

akhstan 40,000 9,000 akhstan Taxes and Royalties 8,000 35,000 7,000 30,000 Cumulative Payments through March 2011 6,000 25,000 5,000 20,000 4,000 15,000 3,000

2,000 10,000 Annual Payments to Kaz to Payments Annual 1,000 5,000

0 0 Kaz to Payments Cumulative

Accomplishments: Current Focus: ■ $1.35 billion in 2010 ■ Kazakhstani Content Team ■ $9.97 billion cumulative spend since 1995 ■ FGP Kazakhstani Content ■ Contracting Strategy ■ Manufacturing Capability Kazakhstani Goods and Services (KG&S) Millions of Dollars per year 1,600

1,400

1,200

1,000

800

600

400

200

0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mar

■ Inventory reduced by 1.25 million tonnes in 2010 ■ Currently under 5.2 million tonnes of sulfur in inventory

4.0 10 4,000 10,000 9.2 3.6 3,600 Pad Inventory 3.6 3.2 9,0009 3,200 Pad Inventory

Year 2.8 3.2 2,800 8 per 8,000 2.4 2,400

2.0 7 2.2

2,000 7,000 (MT Tonnes Production 2.1

1.6 ) 1,600 1.2 1.6 6 Million 6,000 1,200 1.3 5.5 0.8 800 0.9 5,0005 0.4 400 0.4 0.0 0 4,0004 2003 2004 2005 2006 2007 2008 2009 2010 Million Tonnes per Year

Total Sales Production Pad Inventory

Egilik Program ■ Social infrastructure program ■ $165 million invested ■ Recipient of 2008 Silver Paryz Award for Best Social Project ■ Recent projects: ● Vocational school in Kulsary ● Renovation of entire water system in Kulsary ● Continued gasification, Egilik Spending electrification and water system 25 upgrades in Atyrau 20

■ Historical projects: ● Kulsary hospital 15 ● Turgyzba & Akkistogai clinics 10

● 2 schools in Atyrau micro-regions $ Millions Millions $

● Atyrau University Annex 5 ● Oil and Gas University repairs ● Kulsary road repairs 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ● Hospital and school equipment Actual

100%

90% 85%

TCO Employees 80%

68% 76%

70%

Kazakhstani % % 60% 60% TCO Supervisor and Managers

50% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mar