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Firm Advises One Of The Largest-Ever Emerging Market Corporate Bond Offerings

July 2, 2008

HOUSTON (July 2, 2008) — Bracewell & Giuliani LLP announced today that JSC National Company KazMunayGas’ (“KMG”) $3 billion debut offering of notes was successfully completed today.  This bond offering is the biggest ever in the Central and Eastern Europe market and one of the largest deals ever completed out of any emerging market.

Bracewell represented KMG in this offering, which was divided into two tranches of notes – 5-year maturity notes with an aggregate principal amount of U.S.$1.4 billion and 10-year maturity notes with an aggregate principal amount of U.S.$1.6 billion – which were placed with institutional investors in the United States, Europe and Asia after a very positive investor reception in a well-attended global roadshow that resulted, despite the relatively difficult market conditions, in an order book being nearly twice oversubscribed.

For KMG, the success of the offering represents a large step towards recognition amongst the global investing community, which is expected to facilitate future access to capital markets as well as provide a benchmark for future quasi-sovereign issues out of Kazakhstan.

KMG is the national oil and gas company of Kazakhstan with vertically integrated upstream, midstream and downstream operations located principally in Kazakhstan.  The notes were issued under KMG’s newly-established Global Medium Term Note Program.  KMG unconditionally and irrevocably guaranteed the notes, which were issued by KazMunaiGaz Finance Sub B.V., a special purpose subsidiary of KMG incorporated in the Netherlands.  The proceeds of the offering will be utilized in KMG's capital investment in the development of Kashagan field as well as for general corporate purposes.  Kashagan field is one of the largest hydrocarbons fields discovered in the last 30 years anywhere in the world.

The co-managers of the offering were ABN AMRO Bank N.V., Citigroup Global Markets Limited, and Credit Suisse Securities (Europe) Limited, represented by White & Case LLP.  KMG's auditors in the offering were Ernst & Young LLP.