Tengizchevroil Investor Briefing

Marketing and Transportation

Norman Hansen General Manager, Marketing & Transportation

Atyrau, May 11, 2011

© Tengizchevroil 2011 Tengizchevroil Strength Exports Optimized

Tengizchevroil consistently demonstrates strong performance moving crude oil and products to market.  Safe, reliable and flexible operations that utilize multiple pipelines, terminals, and rail.

© Tengizchevroil 2011 2 Key to Growth Exports

Samara  Key to growth in the early Baltic Central Europe Black Sea years was dramatically Odessa increasing the volume of Feodossiya Kazakhstan crude oil exported by rail. Tengiz CPC  CPC provided the export Aktau capacity for a major new Batumi phase of growth, SGI/SGP. Baku Railroad Pipeline Barge

Million tonnes per year 16

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S 12 PS c Atyrau 10 PS o p 8 e PS 6 : PS Komsomolskaya Tengiz PS 4 Kropotkin MT 2

0 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 CPC Existing pipelines Rail

© Tengizchevroil 2011 3 Crude Oil Export Routes Today Safe, Reliable, Diverse, Optimized

Strategy  Ensure safe and TCO Pipeline and Rail Routes reliable exports. Moscow  Optimize netbacks. Atyrau - Samara UKRAINE Samara Astana Northern Route Aksai Odessa Transportation and KAZAKHSTAN Sales Feodosiya Atyrau Taman Black Sea Novorossyisk CPC  2010 crude oil sales Kulevi Aktau Batumi GEORGIA Tengizchevroil of 25.7 million tonnes. Ceyhan Baku Southern Route BTC  CPC is the primary Caspian Mediterranean Sea export route. Sea  Southern and northern routes are mostly rail.

© Tengizchevroil 2011 4 Transportation Infrastructure Unlocks Value CPC Expansion on the Way

 CPC’s expansion is Caspian Export Routes AtyrauAtyrau--SamaraSamara paving the way for ExpansionExpansion 25 MMT CPCCPC RUSSIA 25 MMT Karachaganak (500 MBD) TCO growth. ExpansionExpansion (500 MBD) 67 MMT 67UKRAINEMMT KAZAKHSTANChina (1,340(1,340 MBDMBD)) Atyrau Kenkiyak

CPC Tengiz  Expanded CPC will Kashagan ChinaChina PipelinePipeline RailRail 2020MMTMMT accommodate all (400 MBD) Novorossiysk 1515MMTMMT KCTS (400 MBD) (300(300 MBDMBD)) Aktau current TCO Black Sea Kuryk Supsa GEORGIA UZBEKISTAN KCTSKCTS production and a Batumi (pipeline and cross- (pipeline and cross- Caspian shipping) Baku Caspian shipping) good portion of FGP ARMENIA 56+ MMT BTC 56+ MMT (1,120+(1,120+ MBDMBD)) production. AIOC Current Southern TURKEY Current Southern RouteRoute railrail andand shipship transporting ~5 MMT Ceyhan transporting ~5 MMT (~100(~100 MBDMBD))  Rail and pipeline options support additional growth.

© Tengizchevroil 2011 5 Liquefied Petroleum Gas (LPG) Sales to a Broad Market

Strategy LPG Sales Distribution  Safe, reliable and Latvia/Estonia cost effective supplier.  Optimize netbacks.

Transportation and Sales  2010 LPG sales of almost 1.4 million tonnes.  European quality propane and butane.

© Tengizchevroil 2011 6 Dry Gas Sold to Western Kazakhstan and Europe

Strategy Republic of Kazakhstan Gas Pipeline System  Expand and secure access to markets.  Optimize netbacks.

Transportation and Sales

 2010 gas sales of about Green pipelines: existing 7 BCM. Red pipelines: planned

Pig Launcher No Flares - Tengiz Sales Gas Meter Station

© Tengizchevroil 2011 7 Sulfur Sales Exceed Production Sulfur Sales Distribution Strategy  Optimize netbacks.  Accelerate pad reduction.  Expand sales to and the Republic of Kazakhstan.

Transportation and Sales  2010 sulfur sales of 3.63 million tonnes.  4 types of sulfur sold: liquid, granulated, flaked and crushed.

© Tengizchevroil 2011 8 Summary Marketing and Transportation

 Demonstrated performance moving crude oil and products to market.  A strong focus on Safety, Production, and Cost.  Capability that supports profitable growth.

© Tengizchevroil 2011 9 10