OREANDA-NEWS. The Board of National Company KazMunaiGaz ("KMG NC" or the "Company") has today informed the Independent Directors of KazMunaiGas Exploration Production ("KMG EP") that it is withdrawing its proposed offer to acquire the shares in KMG EP which it does not already own at a price of \\$18.50 per GDR, as a result of ongoing volatility in the oil market and the inability to reach an agreement on price. 

As majority shareholder, KMG NC will continue to play a full role supporting the development of KMG EP. KMG NC continues to believe that the re-integration of KMG EP into KMG NC remains a sensible strategic goal for all shareholders.