KMG Development Strategy

Context

In 2025, the oil and gas industry continued to navigate a period of heightened macroeconomic and geopolitical uncertainty. Decelerating global economic growth, shifts in the monetary policies of major economies, and persistent commodity price volatility created a volatile external environment for all energy market players.

In this context, KMG’s Development Strategy focused on adapting to the evolving global energy landscape and establishing a sustainable model for long‑term growth. The Company prioritised enhancing value chain efficiency, bolstering financial resilience, diversifying business operations, and gradually transforming its business model in alignment with global energy and climate trends.

VISION

Vertically integrated national oil and gas company that meets the highest standards of safety, is committed to sustainability principles, and seeks to maximise its financial performance.

MISSION

We are effective and sustainable in our use of natural resources to ensure energy security, development, and prosperity of Kazakhstan while also caring about future generations.

KMG’s 2022–2031 Development Strategy was approved by the Board of Directors in November 2021.

KMG Development Strategy
Strategic focuses

By delivering on its four strategic goals, KMG contributes to diversifying the national economy and reducing Kazakhstan’s carbon footprint. The Company’s Development Strategy, along with its strategic goals and objectives, is disclosed for all stakeholders on its corporate website. Furthermore, KMG Group consistently holds annual strategic meetings to tackle systemic and forward‑looking challenges that influence the Company’s operations.

Strategic goal No. 1
Resource base sufficient to support KMG’s growth
2025 highlights
Net hydrocarbon reserves under PRMS, mln boe
Net hydrocarbon reserves under PRMS, mln toe
  • 161 mln tonnes – cumulative new reserves in 2022–2025.
  • Hydrocarbon exploration and production contracts were signed with strategic partners for complex projects at the Zhylyoi (Atyrau Region and Kazakhstan’s part of the Caspian Sea) and Berezovsky (West Kazakhstan Region) subsoil blocks.
  • Drilling of two deep prospecting wells was completed at the Karaton Subsalt (Atyrau Region) and Turgai Palaeozoic (Kyzylorda Region) blocks.

For more details, see the Exploration section

Strategic goal No. 2
Improved efficiency across the Company’s value chain

Upstream

Oil and gas condensate production, thous. tonnes
2025 highlights
  • 26.2 mln tonnes – all‑time high for oil and gas condensate production.
  • 434 thous. tonnes – additional oil output from implementing measures under the roadmap of technological challenges.
  • 11.4 bln m³ – all‑time high for natural and associated gas production.
  • Commercial production of crude oil commenced at the Third‑Generation Plant at the Tengiz field.
  • Gas production ramp‑up at the West Prorva (Embamunaigas), Rozhkovskoye (Ural Oil and Gas) and East Urikhtau (Urikhtau Operating) fields driven by the launch of new wells.

For more details, see the Upstream section

Midstream

2025 highlights
  • 1 bln tonnes – total volume of oil shipped via the CPC marine terminal since 2001.
  • 45.1 mln tonnes – transportation volume via the KazTransOil system (a seven‑year high).
  • 63.8 mln tonnes – volume of Kazakhstan oil shipped via the CPC marine terminal.
  • 2.1 mln tonnes – volume of Kazakhstan oil supplied to Germany.
  • 1.3 mln tonnes – volume of Kazakhstan oil shipped from the Port of Aktau via the Baku–Tbilisi–Ceyhan (BTC) route.

For more details, see the Midstream section

Downstream

Refining depth, %
2025 highlights
  • 14.7 mln tonnes – all‑time high for total hydrocarbon refining throughput at Kazakhstan refineries (18.2 mln tonnes on a 100% basis).
  • 90.1% – all‑time high refining depth at Kazakhstan refineries.
  • 77.7% – all‑time high yield of light oil products at Kazakhstan refineries.
  • 4.6 mln tonnes – all‑time high petrol production at Kazakhstan refineries (5.7 mln tonnes on a 100% basis).
  • 5.1 mln tonnes – all‑time high diesel fuel production at Kazakhstan refineries (6.1 mln tonnes on a 100% basis).
  • The upgrade of the Caspi Bitum plant was completed, increasing oil refining capacity from 1.0 mln to 1.5 mln tonnes per year and bitumen production from 500 thous. to 750 thous. tonnes per year.

For more details, see the Downstream section

Strategy
Strategic goal No. 3
Business diversification and product portfolio expansion
2025 highlights
  • 377 thous. tonnes – output of polypropylene at the KPI integrated gas chemical complex.
  • Construction of the Silleno integrated gas chemical complex for polyethylene production with a capacity of 1.25 mln tonnes per year commenced.
  • An EPC contractor was selected for the gas separation unit (GSU) construction project.
  • A contractor was selected for the trunkline (ethane, propane) construction project.
  • A four‑party Framework Agreement on the Urea project was signed as part of developing cooperation with CNPC (China).

For more details, see the Key Investment Projects section

Business diversification and product portfolio expansion
Strategic goal No. 4
Sustainable development and gradual reduction in carbon intensity of production
2025 highlights
  • BBB — ESG rating from MSCIMorgan Stanley Capital International, an international provider of indices and ESG ratings for the global investment community..
  • B — CDP climate ratingCarbon Disclosure Project – a climate programme for carbon reporting..
  • Climate and disclosure: methane emissions reports of subsidiaries and associates were submitted to UNEPUnited Nations Environment Programme (UNEP) – the leading UN body for environmental protection. under the OGMP 2.0Oil & Gas Methane Partnership 2.0 (OGMP 2.0) – UNEP’s flagship programme for reporting and mitigating methane emissions in the oil and gas sector. initiative.
  • Low‑carbon energy: a 50 MW solar power plant was commissioned in Zhanaozen (Mangistau Region).
  • Environmental and social initiatives: the Kenderly seawater desalination plant with a capacity of 50 thous. m³ per day was brought on‑stream in the Mangistau Region.
  • Methane emissions management: instrumental measurements of methane leaks were conducted at Kazgermunai, Embamunaigas, and Mangistaumunaigaz.

For more details, see the Ensuring Sustainable Development section

Sustainable development and gradual reduction in carbon intensity of production

KPIs

In 2025, KMG implemented key initiatives and achieved its planned corporate KPIs.

Performance against corporate KPIs in 2025The KPI delivery values are estimated. The final approval by the KMG Board of Directors of the actual values of the indicators for 2025 is expected in July 2026.
Corporate key performance indicators 2025 actual performance (2024 actual performance), description
Oil and gas condensate production 26,211 thous. tonnes (2024: 23,837 thous. tonnes)
This indicator measures oil and gas condensate production from operating assets and major oil and gas assets attributable to the Company.

For more details, see the Upstream section

Performance under investment projects 8 projects (2024: 6 projects)
  1. Construction of the Kenderly seawater desalination plant (commissioning).
  2. Ramping up the Caspi Bitum plant’s oil refining capacity to 1.5 mln tonnes per year through the modernisation of the existing EDD‑AVDU unit (commissioning).
  3. Construction of a new gas processing plant in Zhanaozen (obtaining a positive conclusion from Gosexpertiza for the detailed design of Phase 2, completion of general construction works on Phase 1).
  4. Construction of an integrated gas chemical complex. Phase 2 (polyethylene) (ordering long‑lead equipment for the polymerisation unit and off‑site facilities (compressors, columns, reactors, pumps, extruder, etc.), commencement of earthworks and piling works (pyrolysis)).
  5. Construction of a gas separation unit (ordering long‑lead equipment (compressors), obtaining a decision from the Council for National Fund Management and/or another lender, including KMG, on project financing).
  6. Kalamkas‑Sea and Khazar (ordering the construction of offshore platforms at Kazakhstan shipyards, completion of FEED).
  7. Construction of a 247 MW hybrid power plant with Eni.
  8. Ethane and propane trunkline construction in the single right‑of‑way, Atyrau Region (selecting the EPC contractor).

For more details, see the Key Investment Projects section

EBITDA margin, excluding trading 45% (2024: 44%)
This indicator measures the Company’s profitability and shows the percentage of revenue retained by the Company before taxes, interest on loans, and depreciation and amortization.

For more details, see the Financial Review section

Total shareholder return (TSR) 40.65% (2024: 28.55%)
This indicator measures return on invested capital. 40.65% = (average share price in the reporting year (KZT 17,893) – average share price in the previous year (KZT 13,071) + dividend per share (KZT 491.71) – contribution to the authorised capital per share (KZT 0)) / average share price in the previous year (KZT 13,071) × 100%

For more details, see the Shareholder and Investor Relations section

Comprehensive OHS indicator 75% (2024: 125%)
The indicator reflects a reduction in the Lost Time Incident Rate (LTIR); identification and alerts on unsafe conditions / unsafe behaviour / unsafe actions / hazardous events / hazardous factors.

In 2025, due to a fatal accident at Ozenmunaigas, the OHS indicator is capped at the 75% threshold.

For more details, see the Occupational Safety section

Share of in‑country value (ICV) in the procurement of goods and share of in‑country value in the procurement of works and services across KMG Group ICV (goods) – 70%, ICV (goods/services) – 90% (2024: ICV (goods) – 55%, ICV (goods/services) – 89%)
This indicator reflects the share of in‑country value in the procurement of goods, works, and services across KMG Group in 2025 (KMG’s subsidiaries and associates acting as subjects of the Samruk‑Kazyna procurement procedures).

For more details, see the Supplier relations section

Approval of the Road Map for AI Projects The KPI reflects the approval of the Road Map for AI Projects (the Road Map must include at least six projects)

The Road Map was approved by KMG’s Board of Directors on 4 December 2025

(indicator introduced in 2025)