Press releases – 2008

Kashagan project progress

17 Jan 2008

The Board of Chagala Group, the specialist Kazakh real estate developer and operator listed on the London Stock Exchange, is pleased to note the announcement that agreement has been reached between Kazmunaigas and the Eni consortium to proceed with the development of the Kashagan oil fields.

Kashagan is the world’s biggest oil find in 30 years, with an estimated 13 billion barrels of recoverable reserves. The project, which will require over $130 billion of investment, is expected to double Kazakhstan’s crude output by 2015 and to lead to the production of around 1.5 million barrels of oil a day when the field reaches full field development.

Chagala is the leading real estate developer in West Kazakhstan and, with a pipeline of major projects in Atyrau, Aktau, Bautino, Uralsk and Aksai, is extremely well positioned to meet the Kashagan project’s significant demand for housing, offices, retail and recreation.

Commenting on the announcement Chagala’s Chief Executive Tim Abson, said:

“The announcement that the parties to the Kashagan Project have reached agreement and that operations will proceed is great news both for Kazakhstan and for Chagala Group. We have been gearing up for this event and are in an excellent position to meet the needs of the project.”

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Notes to Editors

Chagala Group

Chagala was formed in 1994 and is the leading real estate developer in West Kazakhstan, exploiting real estate development opportunities related to the emerging offshore oil and gas industry in the region.

The company’s first facility was opened in 1995 in the city of Atyrau on the Caspian Sea and, to date, Atyrau has been the prime area of activity. Its principal areas of operation are Atyrau, the administrative centre for Kazakhstan’s oil & gas industry, Bautino, the supply base for the off-shore oil industry; Aktau, a major Kazakh sea port with oil-loading facilities; and Uralsk, the regional centre connected with the Karachaganak gas field, one of the biggest gas condensate fields in the world.

Chagala’s diversified property portfolio includes: a chain of three star hotels catering to businessmen working in the rapidly expanding energy sector, fully-serviced, high quality apartments, a range of stand alone food and beverage outlets, office buildings complying with international standards and a sizeable portfolio of land in strategic locations for future development.