OKIOC Announces Discovery in Northeast Caspian Sea.

Business Editors

ATYRAU, Kazakhstan--(BUSINESS WIRE)--July 24, 2000

The Offshore Kazakhstan International Operating Company (OKIOC) today announced a discovery at the Kashagan East 1 well, located 75 kilometres south-east of Atyrau in the Northeast Caspian Sea.

This represents the first discovery on the Kazakhstan shelf. The discovery well encountered an oil-bearing interval in the Palaeozoic Carbonates below 4,000 metres. Two tests have been planned, and one test has been completed. The lower test section flowed at a rate of up to 3,700 barrels (600 cubic meters) of oil per day and 7 million cubic feet (200,000 cubic meters) of gas per day on a 32/64" choke. Oil gravity measured at the well-site ranged between 42 and 44 degrees API. The well was drilled in 3 metres (10 feet) of water to a total depth of nearly 5,200 metres (16,400 feet).

OKIOC General Manager Keith Dallard said: "OKIOC and its Shareholders are encouraged by the data we have received to date and we hope that continued exploration and appraisal drilling will further support these initial results. We will continue to analyse the information obtained during the drilling and testing programme to learn more about the characteristics of the hydrocarbons that we have encountered and the nature of the Kashagan field."

Kashagan East 1 is the first well drilled by OKIOC. Drilling activities at Kashagan West, a second exploration location 40km from the Kashagan East location, will be commenced in the fourth quarter of the year. OKIOC is conducting an exploration programme in the Northeast Caspian Sea on behalf of a consortium of nine international shareholders. OKIOC shareholders include subsidiaries of ENI, BG, BP Amoco, ExxonMobil, Inpex, Phillips Petroleum, Shell, Statoil and TotalFinaElf.

For additional information about OKIOC, please visit the Web site at www.okioc.kz