Batumi Oil Terminal

Company “Batumi Industrial Holdings Limited” -100%

The subsidiary of “NC “KMG” JSC, “KazTransOil” JSC has acquired 100% block of shares in the company “Batumi Industrial Holdings Limited” (hereinafter - BIHL) in February 2008. BIHL has a number of strategic assets in Georgia, including Batumi Oil Terminal. In addition, BIHL owns the exclusive right to control Batumi sea port for 49 years.

Batumi Oil Terminal is a sea point used for transportation of Caspian oil exports. BNT also is the only terminal on the Caucasian Black Sea coast used for handling of liquefied petroleum gas.

Batumi Sea Port is located on the Black Sea in the western part of Georgia and is a transportation hub that brings together sea, rail, road and pipeline transport modes.

In 2011 the volume of crude oil and petroleum products amounted to about 5.4 million tons.

Currently, optimization of the structure of BIHL Group companies is being implemented to reduce a number of intermediate levels of management between “KazTransOil” JSC and the main production assets, as well as liquidation of non-manufacturing BIHL Group companies.

Activities to restructure BIHL Group structure are conducted in accordance with the restructuring plan developed by the consulting company “Deloitte”.

Since the beginning of optimizing BIHL structure the company «Black Sea Maritime Ltd» and «Caucasus Maritime Ltd» were liquidated. Arrangements for a merger of “Alegratrans Overseas Ltd” and “Petrotrans Ltd” are completed, as well as the companies “Batumi Port Holdings Ltd” and “Petrotrans Ltd”. The right to control 100% block of shares of the Port from the company “Batumi Port Holdings Ltd” to the Terminal.

Completing restructuring BIHL Group companies is planned by 2013.