Re: Meetings of Caspian Pipeline Consortium managing bodies

CPC-R Board of Directors meeting as well as Company’s Annual General Shareholders’ meeting were held on May 17/18, 2011 in London.

The CPC-R Board of Directors has reviewed financial, business and organizational matters of both Company’s ongoing operation and CPC Expansion Project. Relevant resolutions were adopted.

The CPC-R Annual General Shareholders’ meeting has elected new membership of the Board of Directors composed of 22 members as well as Company’s Audit Commission. CPC-R 2010 annual report and annual accounts were approved. It was resolved not to pay dividends for the past fiscal year. In addition, the Shareholders have approved ZAO PriceWaterhouseCoopers as auditors of Company’s financial statements in 2011. The new membership of the Board of Directors again elected Mr. A. McGrahan representing Chevron Caspian Pipeline Consortium Company Chairman of the CPC-R Board of Directors.

CPC Shareholders: Russian Federation (represented by Transneft – 24% and CPC Company – 7%) – 31%; Republic of Kazakhstan (represented by KazMunaiGaz – 19% and Kazakhstan Pipeline Ventures LLC – 1.75%) – 20.75%; Chevron Caspian Pipeline Consortium Company – 15%; LUKARCO B.V. – 12.5%; Mobil Caspian Pipeline Company – 7.5%; Rosneft-Shell Caspian Ventures Limited – 7.5%; BG Overseas Holding Limited - 2%; Eni International N.A. N.V. - 2%; and Oryx Caspian Pipeline LLC – 1.75%.