Dedication across the board
Annual Report 2012



3-D seismic survey Seismic survey that is acquired, processed and interpreted to yield a three-dimensional picture of the subsurface.
2009 Ryder Scott Report The report prepared by Ryder Scott relating to the Group’s reserves and resources, dated 1 July 2009.
2010 / 2011 / 2012 Ryder Scott Report The report prepared by Ryder Scott relating to the Group’s reserves, dated 31 December.
AMEC AMEC Overseas (Cyprus) Limited
AMEC Report AMEC environmental, health and safety due diligence report “Health, Safety and Environmental Compliance and Assurance of Audit of Zhaikmunai’s Facilities” dated 31 July 2012.
Anti-Monopoly Agency The Kazakh anti-monopoly authority.
API American Petroleum Institute.
API gravity The industry standard method of expressing specific density of crude oil or other liquid hydrocarbons as recommended by the American Petroleum Institute. Higher API gravities mean lower specific gravity and lighter oils. When the API gravity is greater than 10, the product is lighter and floats on water; if it is less than 10, it is heavier than water and sinks. Generally speaking, oil with an API gravity between 40 and 45 commands the highest prices.
associated gas Gas, which occurs in crude oil reservoirs in a gaseous state.
Authorised Oil and Gas Agency The State’s authorised agency in the area of oil and gas, acting on the instructions of the President and the Government, currently, the MOG.
barrel / bbl The standard unit of volume:
1 barrel = 159 litres or 42 US gallons.
bcf Billion cubic feet, a billion defined as 1,000,000,000. On average 1 bcf of sales gas = 1.055 petajoules.


Barrels of (crude) oil equivalent, i.e. the factor used by Zhaikmunai to convert volumes of different hydrocarbon production to barrels of oil equivalent.

bopd Barrels of crude oil per day.
boepd Barrels of (crude) oil equivalent per day.
Chinarevskoye field The Chinarevskoye oil and gas condensate field.
Common Units Limited partner interests each representing a fractional part of the rights and obligations of all limited partners of Zhaikmunai LP.
Competent Authority The Kazakhstan State’s central executive agency, designated by the Government to act on behalf of the State to exercise rights relating to the execution and performance of subsoil use contracts, except for contracts for exploration and production of commonly occurring minerals. This was, until recently, the Ministry of Energy and Mineral Resources of Kazakhstan, which on 12 March 2010 was reorganised into the Ministry of Oil and Gas (MOG) with respect to the oil and gas industry.
Competition Law The Kazakhstan Law “On Competition” (No 112-IV, dated 25 December 2008, which came into effect on 1 January 2009).
contingent resources Deposits that are estimated, on a given date, to be potentially recoverable from known accumulations but that are not currently considered commercially recoverable.
cost oil Cost oil denotes an amount of crude oil produced in respect of which the market value is equal to Zhaikmunai’s monthly expenses that may be deducted pursuant to the PSA (include all operating costs, exploration costs and development costs up to an annual maximum of 90% of the annual gross realised value of hydrocarbon production).
DAF Sales made on delivery at frontier terms.
Development Plans The development plans approved by the SCFD in March 2009.
Directors or Board The directors of the General Partner.
EBRD European Bank for Reconstruction and Development.
 “EBIT” Earnings before interest and tax.
 “EBITDA” Earnings before interest, taxes, depreciation and amortisation.
EEA European Economic Area.
Environmental Code The Kazakhstan Environment Code (No 212, dated 9 January 2007, as amended).
Exploration Permit The geological allotment (Annex to the Licence) issued by the Competent Authority to Zhaikmunai.
exploration well Well drilled purely for exploratory (information gathering) purposes in a particular area.
FCA Sales made under free carrier terms.
FCA Uralsk Sales made under free carrier terms according to which Zhaikmunai delivers to the terminal in Uralsk and transportation risk and risk of loss are transferred to the buyer after delivery to the carrier.
Field An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structure feature and/or stratigraphic condition.
FOB Sales made under free on board terms.
FSA Financial Services Authority of the United Kingdom.
FSMA The Financial Services and Markets Act 2000 (as amended).
gas Petroleum that consists principally of light hydrocarbons. It can be divided into lean gas, primarily methane but often containing some ethane and smaller quantities of heavier hydrocarbons (also called sales gas), and wet gas, primarily ethane, propane and butane as well as smaller amounts of heavier hydrocarbons; partially liquid under atmospheric pressure.
gas condensate The mixture of liquid hydrocarbons that results from condensation of petroleum hydrocarbons existing initially in a gaseous phase in an underground reservoir.
Gas Treatment Facility (GTF) Facility for the treatment of all gas (associated gas and gas condensate) produced by Zhaikmunai resulting in different products (stabilised condensate, LPG and dry gas) for commercial sales. Phase I GTF consists of two trains with a combined treatment capacity of 1,7 billion cm of raw gas per year.
GDRs The global depository receipts of Zhaikmunai LP.
General Partner ZGL in its capacity as general partner of Zhaikmunai LP.
government The government of Kazakhstan.
gross (oil and gas) wells / acres Gross oil and gas wells or gross acres are the total number of wells or acres in which the Group has an interest, without regard to the size of that interest.
Group Zhaikmunai LP and, as the context requires, its direct and indirect consolidated subsidiaries.
hydrocarbons Compounds formed from the elements hydrogen (H) and carbon (C), which may be in solid, liquid or gaseous form.
IAS International Accounting Standards
IFRS International Financial Reporting Standards
independent director The independent directors of the General Partner as defined in the Articles of Association of the General Partner.
Kazakhstan The Republic of Kazakhstan.
KASE Kazakhstan Stock Exchange
KazMunaiGas State-owned oil and gas company of Kazakhstan.
KazMunaiGas Exploraltion Production KMG EP Onshore oil and gas exploration production subsidiary of KazMunayGas
km Kilometre(s)
Kyoto Protocol The Kyoto Protocol to the United Nations Framework Convention on Climate Change.
licence Licence series MG No. 253-D (Oil) issued to Zhaikmunai by the Government on 26 May 1997.
Licencing Law The Kazakhstan Law “On Licensing” (No. 214, dated 11 January 2007, as amended, which came into effect on 9 August 2007).
listing rules The listing rules made by the Financial Services Authority (FSA) under section 73A of the FSMA.
London Stock Exchange or LSE London Stock Exchange.
LPG Liquefied petroleum gas, the name given to the mix of propane and butane in their liquid state
m Metre(s)
mbbls Thousands of barrels of crude oil.
mmbbls Millions of barrels of oil.
mboe Thousands of barrels of oil equivalent.
mmboe Millions of barrels of oil equivalent.
mmcm Millions of cubic metres.
MEP The Kazakhstan Ministry of Environmental Protection.
MINT The Kazakhstan Ministry of Industry and New Technologies.
MOG The Ministry of Oil and Gas of Kazakhstan, the State’s central executive agency, acting based upon its Regulations approved by the Resolution of the Government (No. 254, dated 20 May 2010), which is currently the Competent Authority in oil and gas and the Authorised Oil and Gas Agency.
NBK National Bank of Kazakhstan.
operator The individual or company responsible for conducting oil and gas exploration, development and production activities on an oil and gas lease or concession on its own behalf and, if applicable, for other working interest owners, generally pursuant to the terms of a joint operating agreement or comparable agreement.
Partnership Zhaikmunai LP
Partnership Act The Partnership Act 1909 of the Isle of Man.
petroleum Hydrocarbons, whether solid, liquid or gaseous. The proportion of different compounds in a petroleum find varies from discovery to discovery. If a reservoir primarily contains light hydrocarbons, it is described as a gas field. If heavier hydrocarbons predominate, it is called an oil field. An oil field may feature free gas above the oil and contain a quantity of light hydrocarbons, also called associated gas.
PRMS 2007 Petroleum Resources Management System, which are a set of definitions and guidelines designed to provide a common reference for the international petroleum industry, sponsored by the Society for Petroleum Engineers, the American Association of Petroleum Geologists, World Petroleum Council and the Society for Petroleum Evaluation Engineers.
Production Permit The mining allotment (Annex to the Licence), issued by the Competent Authority to Zhaikmunai.
production well A well that has been drilled for producing oil or gas, or one that is capable of production once the producing structure and characteristics are determined.
profit oil Profit oil is the difference between cost oil and the total amount of crude oil produced each month, which is shared between the State and Zhaikmunai.
prospective resources Quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations.
Proven Reserves (1P) Proven reserves (1P) are those reserves that, to a high degree of certainty (90% confidence), are recoverable. There is relatively little risk associated with these reserves. Proven developed reserves are reserves that can be recovered from existing wells with existing infrastructure and operating methods. Proven undeveloped reserves require development.
Proven plus Probable Reserves (2P) Proven plus Probable reserves (2P) are those reserves that analysis of geological and engineering data suggests are more likely than not to be recoverable. There is at least a 50% probability that reserves recovered will exceed Proven plus Probable Reserves.
Proven, Probable plus Possible Reserves (3P) Proven, Probable plus Possible reserves (3P) are those reserves that, to a low degree of certainty (10% confidence), are recoverable. There is relatively high risk associated with these reserves.
PSA Production Sharing Agreement. contract for additional exploration, production and production sharing of crude oil hydrocarbons in the Chinarevskoye oil and gas condensate field in the West-Kazakhstan oblast No. 81, dated October 31, 1997, as amended, between Zhaikmunai and the Competent Authority (currently MOG), representing Kazakhstan.
PSA Law Kazakhstan Law No. 68-III “On Production Sharing Agreements for Constructing Offshore Petroleum Operations”, dated 8 July 2005.
QIB A qualified institutional buyer as defined in Rule 144A.
recovery The second stage of hydrocarbon production during which an external fluid such as water or gas is injected into the reservoir to maintain reservoir pressure and displace hydrocarbons towards the wellbore.
reservoir A porous and permeable underground formation containing a natural accumulation of producible oil and/or gas that is confined by impermeable rock or water barriers and is individual and separate from other reservoirs.
royalty An interest in an oil and gas property entitling the owner to a share of oil or gas production free of costs of production.
Ryder Scott Independent petroleum consultants Ryder Scott Company LP, headquartered in 621 Seventeenth Street, Suite 1550, Denver, Colorado, 80293, USA.
SEC The United States Securities and Exchange Commission.
Securities Act The United States Securities Act of 1933, as amended.
seismic The use of shock waves generated by controlled explosions of dynamite or other means to ascertain the nature and contour of underground geological structures.
sidetrack well A well or borehole that runs partly to one side of the original line of drilling.
SPE Society of Petroleum Engineers.
State Republic of Kazakhstan.
State Acceptance Commission The State Acceptance Commission of the Republic of Kazakhstan which is the competent body authorised to, among other things, confirm that permanent operations can commence for certain facilities, including the gas treatment facility.
State Share The share of hydrocarbon production due (in cash or kind) to the Republic of Kazakhstan under the PSA.
Subsoil Law:
- Old Subsoil Law The Kazakhstan Law “On Subsoil and Subsoil Use” (No. 2828, dated 27 January 1996, as amended), recently replaced with the New Subsoil Law.
- New Subsoil Law The most recent Kazakhstan Law “On Subsoil and Subsoil Use” (No. 291-IV, dated 24 June 2010).
Substitution The ability for Zhaikmunai LLP to elect to undertake, upon satisfaction of certain conditions, to be substituted for the Issuer as Issuer of the Notes, whereupon it will assume all of the obligations of the Issuer under the Notes.
Takeover Code The UK City Code on Takeovers and Mergers.
Tenge or KZT The lawful currency of the Republic of Kazakhstan.
tonne Metric tonne.
UK Corporate Governance Code Set of principles of good corporate governance which provides a code of best practice aimed at companies listed on the London Stock Exchange.
UNGG Uralsk Oil and Gas Explorations Expedition.
The Government of the Kazakh Soviet Socialist Republic decided in March 1960 to create a consortium “Uralskneftegazrazvedka” for conducting oil and gas exploration in the Uralsk region. In the 60-s, the consortium was involved in more than 59 exploration projects. In 1970, the consortium was renamed “Uralsk Enlarged Oil-Gas Exploration Expedition”.
U.S. Dollars or US$ The lawful currency of the United States of America.
workover Routine maintenance or remedial operations on a producing well in order to maintain, restore or increase production.
Water Code The Water Code of Kazakhstan (No. 481, dated 9 July 2003, as amended).
WUP or Water Use Permit The permit granted by the relevant Government authority with respect to water use pursuant to the Water Code.
Zhaikmunai Zhaikmunai LP, the operating company of the Group.
Zhaikmunai Group Limited (ZGL) Registered Office and Corporate Headquarters are:
Zhaikmunai LP Registered Office:
7th Fl. Harbour Court
Lord Street
Douglas, IM1 4LN
Isle of Man

Corporate Headquarters:
Amsterdam Symphony
Gustav Mahlerplein 23B
1082 MS Amsterdam
The Netherlands
Zhaikmunai LLP Corporate Office:
59/2, Eurasia Prospect
Uralsk, 090002
Republic of Kazakhstan

Representative Office:
Office 319
Kurman Batyr Prospect
Astana, 010000
Republic of Kazakhstan