Strategy and Sustainable Development

Strategic Goal No. 1

Sufficient resource base to ensure the Company's long-term growth

Ensuring sustainable production levels and building a foundation for growth in the medium and long term remain the Company's key priorities. To this end, a systematic program is being implemented to replenish the resource base, based on geological exploration, strategic partnerships, and selective M&A transactions.

In 2022-2025, cumulative growth in hydrocarbon reserves is ensured through the acquisition of stakes in the Kashagan, Kalamkas-sea and Khazar, Dunga projects, as well as active geological exploration.

During the reporting period, the main seismic surveys under the project geological exploration of the subsurface 1.0 were completed, and the implementation of the exploration project portfolio continued across prospective areas, including Zhylyoi, Bolashak, North Ozen, and Berezovsky, for which subsoil exploration and production contracts have been signed. To reduce geological and financial risks, the Company has engaged strategic partners, including the China National Offshore Oil Corporation (hereinafter - CNOOC) and the Sinopec Petroleum and Chemical Corporation (hereinafter Sinopec).

Concurrently, during the reporting period, a new stage of geological exploration of the project geological exploration of the subsurface 2.0 was launched, providing for preparatory activities and advanced seismic surveying. The search for and potential acquisition of additional assets is considered on an ongoing basis, provided that economically sound and strategically relevant opportunities are available.

Strategic Goal No. 2

Improving the Company's value chain efficiency

As part of KMG's Development Strategy, the Company is improving efficiency across the entire value chain - from production and refining to oil transportation and international assets - thereby ensuring the sustainability of its operational and financial performance.

In the reporting year, oil and condensate production amounted to approximately 26.2 million tonnes (2024 - 23.8 million tonnes), which is in line with the Strategy's targets. In 2025, gas production reached 11.45 billion m3 (2024 - 9.5 billion m3). During the reporting period, key initiatives were implemented, including the launch of the Third Generation Plant of Tengizchevroil LLP (hereinafter - TCO) and achieving 1 billion barrels of cumulative production at the Kashagan field.

In the transportation segment, the diversification of export routes was further strengthened: 1.3 million tonnes of oil were transported through the Port of Aktau toward Baku (-7%), and 2.1 million tonnes via the Druzhba pipeline (+40%). In refining and petrochemicals, efficiency improvements continued: the annual refining depth is estimated at 90.1% (2024 - 87.4%), and key production facilities were commissioned and modernized.

The implementation of Strategic Goal No. 2 ensured the stability of key operational indicators and created a foundation for further efficiency gains.

Strategic Goal No. 3

Business Diversification and Product Portfolio Expansion

As part of its 2022-2031 Development Strategy, the Company is consistently expanding its oil and gas chemicals segment as one of the key drivers of value creation and enhanced business model sustainability.

In 2025, the implementation of oil and gas chemical projects covered the main product lines targeting domestic and international markets. Construction of the polypropylene production project (capacity - 500,000 tonnes per year) was completed and the commissioning certificate was signed. In 2025, 377,000 tonnes of products were produced, including 186,600 tonnes attributable to KMG (+51.4% compared to the previous year).

Under the Polyethylene project (capacity - 1.25 million tonnes per year), construction works have commenced and Engineering, Procurement and Construction (hereinafter - EPC) contracts have been signed; the project is being implemented with the participation of strategic partners SIBUR and Sinopec. Under the Carbamide project, a framework agreement was signed with China National Petroleum Corporation (hereinafter - CNPC), and the Feasibility Study has been completed.

The implementation of these projects forms the basis for the development of the oil and gas chemical clusters, the deepening of feedstock processing, and the expansion of the product portfolio, while supporting the phased diversification of the business.

Strategic Goal No. 4

Sustainable Development and Progressive Reduction of Carbon Intensity of Production

The Company continued to implement a comprehensive approach to sustainable development aimed at the gradually reducing of the carbon intensity of production processes and the development of low-carbon energy sources. Relevant initiatives are being carried out within the framework of the long-term climate and investment agenda, taking into account industry-specific factors and the regional context of company’s operations.

Key areas of focus during the reporting period included projects in renewable and hybrid power generation, as well as measures to manage greenhouse gas emissions, including methane. The implementation of these initiatives enables the Company to simultaneously address decarbonization objectives, improve the reliability of energy supply, and reduce operational risks.

In the Mangystau Region, implementation continues on the hybrid power plant project in Zhanaozen with a total installed capacity of 247 MW, comprising a solar power plant (50 MW), a wind power plant (77 MW), and a gas-fired power plant (120 MW). In 2025, the installation of photovoltaic panels for the solar power plant was completed in full. In September 2025, comprehensive testing was completed and the 50 MW solar generation facility was commissioned. The project is being implemented in partnership with Eni during the period 2024-2026.

In the Zhambyl Region, the "Mirny" wind power plant project is underway, with an installed capacity of 1 GW and an energy storage system of 300 MW / 600 MWh. In December 2025, a Subscription Agreement was signed, providing for the acquisition by KMG Green Energy LLP of a 20% equity interest in Aktas Energy LLP (a joint venture with Total Energies Renewables SAS). The project partners are Total Energies Renewables SAS and "Qazaq Green Power" PLC, with an implementation timeframe of 2025-2028.

As part of its methane emissions management efforts in 2025, the Company conducted field measurements at the facilities of JV KazGerMunai LLP and Mangistaumunaigas JSC jointly with Carbon Limits.

In May 2025, reporting on methane emissions of subsidiaries and affiliates was submitted to UNEP, along with an action plan for implementing the requirements of the OGMP 2.0 initiative. In addition, satellite monitoring of methane emissions at subsidiary facilities, launched in 2023 with the support of OGCI and UNEP's IMEO, is ongoing.

The comprehensive implementation of these projects and initiatives provides the foundation for the consistent reduction of climate-related risks, improved energy efficiency, and enhanced long-term resilience of the Company's operations.