Mubadala announce signing of Memorandum of Understanding for "N" Block, offshore Kazakhstan

The parties will now have until December 31 2008 to negotiate the definitive agreements for the assignment by KMG of a 49% interest in the subsoil use contract to be shared equally between ConocoPhillips and Mubadala. KMG will remain the majority partner in the venture.

"KazMunayGas looks forward to a speedy conclusion to the negotiation and a successful, long-term relationship with both ConocoPhillips and Mubadala. Cooperation with these companies would allow for the attraction of new technologies relating to the exploration and production of oil and gas on the Caspian shelf," said Kairgeldy Kabyldin, President, KazMunayGas.

"ConocoPhillips looks forward to establishing a major new exploration presence in Kazakhstan, building on our long-standing participation in the oil and gas sector here, and will be honored to participate with KazMunayGas and Mubadala in this world-class exploration project," said Jim Mulva, chairman and chief executive officer, ConocoPhillips.

"Mubadala is an active developer in the international energy sector, with a growing portfolio of first class assets in the upstream oil and gas sector, and this MOU marks another significant step forward for us," said Khaldoon Khalifa Al Mubarak, chief executive officer and managing director, Mubadala Development Company.

"We are excited by the potential of this block and the opportunity it provides for us to bring our experience to bear, working together with trusted organizations like KazMunayGas and ConocoPhillips."

The "N" Block is located 30 kilometers south southwest offshore Aktau, Kazakhstan in the Caspian Sea. The Block covers approximately 8,100 square kilometers and is considered highly prospective for both oil and gas.

The Memorandum of Understanding was signed by Kairgeldy Kabyldin, President of KazMunayGas, Jim Mulva, chairman and chief executive officer of ConocoPhillips, and Khaldoon Khalifa Al Mubarak, chief executive officer and managing director of Mubadala. It was witnessed by His Excellency Sayat Mynbayev, Minister of Energy and Natural Resources of the Republic of Kazakhstan.