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Company Response

1 Oct 2013

Author:
Karachaganak Petroleum Operating BV (KPO)

[KPO response regarding concerns about health and environmental hazards related to operations at Karachaganak field

With reference to your invitation extended to KPO for comments on a video raising concerns about health and environmental hazards related to operations at Karachaganak Field, please find the following response reflecting the shared position of KPO and its joint operators BG Group and Eni: Karachaganak Petroleum Operating BV (KPO), which is the operator of the Karachaganak gas condensate field in Kazakhstan, takes its environmental and social responsibilities very seriously and is disappointed by Crude Accountability's misleading film. Regular environmental monitoring in and around the field, carried out by independent third parties as well as KPO, continues to demonstrate that safe levels of concentrations of pollutants have not been exceeded...The alleged environmental impacts and the need for resettlement...have already been the subject of...verification by the Compliance Advisor Ombudsman (CAO)...with no negative outcome to KPO. During the site verification process in 2008, CAO attempted to mediate a solution to the satisfaction of all concerned, including Crude Accountability and the local NGOs. However...the local NGOs...refused to engage constructively in the mediation process proposed by CAO. The administrative decisions on determination of the size of Karachaganak Field SPZ...were taken pursuant to the legal and regulatory framework that applies in the Republic of Kazakhstan (RoK), judicially confirmed by the RoK Supreme Court...KPO continues to make substantial investments aimed at improving the environmental performance and social impacts of our operations...

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