OREANDA-NEWS. On 30 June 2008 KazMunayGas's ("KMG") announced that the Kashagan consortium has reached agreement with the Government of the Republic of Kazakhstan on a detailed Memorandum of Understanding which expands considerably the agreements reached last December and January and paves the way for proceeding with the development project.

In addition to the important adjustments to the economic terms, the new agreement also provides the Republic of Kazakhstan with substantial assurances that the project will be implemented in accordance with the approved schedule. The members of the consortium, including KMG, will ensure bringing the project into the production phase.