Document:

February 3, 2000

Mr. Michael B. Young
Treasurer & Controller
Chaparral Resources, Inc.
16945 Northcase Drive, Suite 1440
Houston, Texas  77060

Re:  Amendment No. 1 to OPIC Contract of Insurance No. F158 (the
     "Contract"<F1>)

Chaparral Resources, Inc. ("Chaparral"), has requested that OPIC modify the
Contract to include "Transfer Risk" (as defined herein).

In response to Chaparral's request OPIC proposes to amend the Contract as
follows:

(1)  The "Table of Defined Terms" is deleted and replaced with the new
     "Table of Defined Terms" attached hereto as Exhibit 1.

(2)  Section 1.05, "TERM", is deleted and replaced with the following:

          "1.05  TERM.  This Contract shall become operative on January 31,
     2000 (the `Effective Date') and shall terminate on December 31, 2020."

(3)  Section 1.06.1, "PREMIUMS AND COVERAGE ELECTIONS", is deleted and
     replaced with the following:

     "1.  TIMING AND RATES. The annual premium rate shall be 2.10% of the
     Covered Amount (as defined herein).  On or before the Effective Date,
     and thereafter on or before the first day of each succeeding three-
     month period following the Effective Date (the Effective Date and each
     such succeeding first day, a `Premium Due Date'), the Investor shall

          (a)  elect amounts of coverage (Section 10.06) and

          (b)  pay the greater of

               (i)  the premium due for the coverage period that commences
                    on such date, and

               (ii) the contract administrative fee due for that period.

     The contract administrative fee is 0.25% of the Investment (Section
     1.01.2) per annum.
________________
<F1> Capitalized terms used but not otherwise defined herein have the
meanings set forth in the Contract.

     Covered Amount means the U.S. dollar amount of coverage, which amount
     shall be elected by the Investor in accordance with the provisions of
     Section 10.06."

(4)  Section 1.06.2, "INITIAL ELECTION", is deleted and replaced with the
     following:

     "2.  INITIAL ELECTION.  The Covered Amount and the premium due for the
     period from January 31, 2000, through April 30, 2000, shall be:

     Covered Amount                                           $30,000,000
     x Quarterly Premium Rate                                     0.5250%
                                                              ===========
     = Premium Due                                              $157,500"

(5)  Section 1.07, "CONTINGENT COVERAGE PREMIUM", is deleted.

(6)  Section 2.01, "INCONVERTIBILITY", is deleted and replaced with the
     following:

     "2.01     INCONVERTIBILITY.  Subject to the exclusions (Section 2.02)
     and limitations (Section 3.02), CAPG or the Foreign Enterprise shall
     be deemed unable to make a payment in U.S. dollars of earnings on or
     returns of the Investment (a `Covered Payment') and compensation shall
     be payable:

          1.   only if

               (a)  CAPG or the Foreign Enterprise is not permitted by the
                    Foreign Governing Authority to retain in U.S. dollars
                    outside of the Project Country in an account owned and
                    controlled by CAPG or the Foreign Enterprise (the
                    `Offshore Account') in accordance with the terms of
                    License No. 60 for Opening an Offshore Bank Account
                    issued by the National Bank of the Republic of
                    Kazakhstan, dated December, 30 1999 (the `Offshore
                    Account License'), constituting proceeds from the sale
                    for export of Petroleum produced by the Project
                    (`Export Proceeds') from which Covered Payments may be
                    made; and

               (b)  CAPG or the Foreign Enterprise:

                    (i)  (A) is required by the Foreign Governing Authority
                         to convert Export Proceeds into the lawful
                         currency of the Project Country (`Local Currency')
                         to be held in a Local Currency account in the
                         Project Country and (B) during the 120 successive
                         days following the date that either CAPG or the
                         Foreign Enterprise attempts to make a Covered
                         Payment (the `Waiting Period'), is unable to
                         convert sufficient Local Currency to make a
                         Covered Payment in U.S. dollars through any
                         readily available legal channel, whether direct or
                         indirect (including a parallel market), except at
                         rates which are less favorable than the rate
                         described under Section 3.01.2; or

                    (ii) (A) is required by the Foreign Governing Authority
                         to hold Export Proceeds in the Project Country and
                         (B) during the Waiting Period is unable legally to
                         transfer to the United States amounts in U.S.
                         dollars from such Export Proceeds to make such a
                         Covered Payment; or

          2.   If either CAPG or the Foreign Enterprise

               (a)  receives in Kazakhstan U.S. dollars constituting
                    proceeds from the sale of Petroleum produced by the
                    Project and sold for delivery in Kazakhstan  (`Domestic
                    Proceeds'), and

               (b)  during the Waiting Period is unable legally to transfer
                    to the United States amounts in U.S. dollars from such
                    Domestic Proceeds to make a Covered Payment."

(7)  Section 2.02.1, "PRE-EXISTING RESTRICTIONS", is deleted and replaced
     with the following:

          "1.  PRE-EXISTING RESTRICTIONS.  If

               (a)  notwithstanding the provisions of Section 2.01, on the
                    date of this Contract a company or an investor, in
                    circumstances comparable to those of the Foreign
                    Enterprise or CAPG on said date, including a  company
                    or investor holding a license substantially the same as
                    the Offshore Account License, would have been legally
                    restricted from (i) receiving and maintaining Export
                    Proceeds in an offshore account, (ii) transferring U.S.
                    dollars to the United States, or (iii) making a payment
                    substantially the same as a Covered Payment; and

               (b)  the Investor knew or should have known about the
                    restriction.

(8)  Section 10.02, "ASSIGNMENT TO OPIC", is amended by deleting paragraph
     (e) thereof and replacing it with the following:

     "In connection with an inconvertibility claim, immediately upon
     receipt of instructions from OPIC, the Investor shall deliver the
     Local Currency or U.S. dollars to OPIC (in cash or, at OPIC's option,
     by draft subject to collection) or the Investor's rights to receive or
     obtain U.S. dollars (Section 2.01)."

(9)  Section 10.06, "ELECTION OF COVERED AMOUNT AND TERMINATION OF
     COVERAGE", is amended by deleting subsection 1 thereof and replacing
     it with the following:

     "1.  The Covered Amount shall be the least of:

          (i)    the Insured Portion of the Book Value of the Investment,

          (ii)   the Maximum Aggregate Compensation Amount, and

          (iii)  the Investor's Share of the Expected Monetary Value of
                 the Reserves;

          PROVIDED, however, that if the Investor wishes to elect a Covered
          Amount that is lower than the lesser of (a) the Insured Portion
          of the Book Value of the Investment as of the day preceding each
          Premium Due Date, the Maximum Aggregate Compensation Amount and
          (b) the Investor's Share of the Expected Monetary Value of the
          Reserves, then the Maximum Aggregate Compensation Amount shall be
          automatically reduced to such Covered Amount elected by the
          Investor and the Investor may not subsequently elect a higher
          Maximum Aggregate Compensation Amount or Covered Amount without
          OPIC's prior written consent. "

All other provisions of the Contract, as amended, shall remain unchanged.

If this Amendment No. 1 is acceptable to Chaparral, please deliver to OPIC
a duly executed counterpart of this letter agreement not later than
February 7, 2000 (delivery of such counterparts to OPIC by facsimile shall
constitute valid acceptance, provided an original executed counterpart is
received by OPIC not later than February 15, 2000).  Upon such delivery,
this Amendment No. 1 and the Contract shall be effective as January 31,
2000.

If you have any questions, please contact Jim Williams at (202) 336-8575.

Sincerely,

/S/ JULIE A. MARTIN
Julie A. Martin
Vice President for Insurance

ACCEPTED AND AGREED as of this 4th day of February, 2000

CHAPARRAL RESOURCES, INC.

By:  /S/ MICHAEL B. YOUNG
     ---------------------------------
Name:     Michael B. Young

Title:    Treasurer

      Exhibit 1 to Amendment No. 1 to Contract of Insurance No. F158

                          TABLE OF DEFINED TERMS

TERM                                                  SECTION
-----                                                 -------

Book Value of the Investment                          5.01
Book Value of the Loan                                5.01
CAPG                                                  Cover Page
Claim Rescission Amount                               8.02
Contract                                              Cover Page
Co-venturer                                           2.02.4
Covered Amount                                        10.06
Covered Payment                                       2.01
Covered Property                                      4.02.2
Domestic Proceeds                                     2.01.3
Effective Date                                        1.05
Environmental Impact Assessment                       11.01.18(b)
Expected Monetary Value of the Reserves               5.05.6
Foreign Currency                                      5.05.5
Foreign Enterprise                                    1.01.1
Foreign Governing Authority                           1.01.3
Historical Cost                                       5.03.1(b)
Insured Portion                                       1.01.2
Intermediate Subsidiaries                             Cover Page
Investment                                            1.01.2
Investor                                              Cover Page
Investor's Share                                      5.03.1(b)
KKM                                                   1.01.1
Liability                                             5.01(a)
Loan                                                  1.01.2(b)
Local Currency                                        2.01.2(a)(i)
Maximum Aggregate Compensation Amount                 1.03
Offshore Account                                      2.01.1
Offshore Account License                              2.01.1
OPIC                                                  Cover Page
Other Insurance                                       11.01.4
Petroleum                                             1.01.1
Political Violence                                    6.01
Premium Due Date                                      1.06.1
Project                                               1.01.1
Project Agreement                                     1.01.1
Project Country                                       1.01.1
Proved Reserves, Probable Reserves, and Possible      5.05.6
Reserves
Replacement Cost                                      7.01(b)
Shares                                                1.01.2(a)
Subsequent Amendments                                 11.01.8
Waiting Period                                        2.01.2(a)
World Bank Guidelines                                 11.01.17Deutsche Bank AG
                                                                Commodities

     CHAPARRAL RESOURCES INC
     16945 NORTHCHASE DRIVE
     SUITE 1440
     HOUSTON
     TEXAS 77060

     ATTN: MICHAEL B. YOUNG

          TRADE CONFIRMATION - 2022  CHAP

A.   This Confirmation (the "Confirmation") evidences a complete and
     binding agreement between you and us as to the terms of the
     transaction to which this Confirmation relates.
B.   The Confirmation incorporates by reference all of the definitions,
     terms, and conditions of the ISDA Master  Agreement (Multicurrency-
     Cross Border) (the "ISDA Form"), (as may be amended, modified or
     supplemented from time to time, (the "Agreement"); provided, however,
     in the event of an inconsistency or conflict between the Confirmation
     and the ISDA Form, the Confirmation shall prevail over the ISDA Form.
C.   The Confirmation, supplements, forms a part of, and is subject to, as
     if we had executed the agreement on the Trade Date, with the Schedule
     thereto (i) specifying that (a) the  governing law is English law,
     without  reference to choice of law doctrine and (b) the Termination
     Currency is U.S. Dollars and (ii) incorporating the addition to  the
     definition of "Indemnifiable Tax" contained in page 48 of the ISDA
     User's Guide to the 1992 ISDA Master Agreements with the modifications
     contained herein.

We confirm details of our trade with you as below:

TRADE DATE:              February 11, 2000

BUYER:                   CHAPARRAL RESOURCES, INC

SELLER:                  DEUTSCHE BANK AG, NEW YORK
                         BRANCH ( "DBNY")

COMMODITY:               Brent Crude - IPE

OPTION TYPE:             Asian Put

STRIKE PRICE:            Refer to table below

PREMIUM:                 USD 4,000,000.00

<TABLE>
CALCULATION PERIOD(S) AND OPTION QUANTITIES

<CAPTION>
CALCULATION    OPTION
PERIOD         QUANTITY    STRIKE PRICE   CALCULATION               CALCULATION
NO.            BARRELS     (USD)          START DATE                END DATE
<S>            <C>         <C>            <C>                       <C>

1              62,750      22.35          October 2nd, 2000         October
31st, 2000
2              62,750      22.05          November 1st, 2000        November
30th, 2000
3              62,750      21.65          December 1st, 2000        December
29th, 2000
4              62,750      21.15          January 2nd, 2001         January
31st, 2001
5              62,750      20.85          February 1st, 2001        February
28th, 2001
6              62,750      20.45          March 1st, 2001           March 30th,
2001
7              62,750      20.05          April 2nd, 2001           April 30th,
2001
8              62,750      19.65          May 1st, 2001             May 31st,
2001
9              62,750      19.45          June 1st, 2001            June 29th,
2001
10             62,750      19.25          July 2nd, 2001            July 31st,
2001
11             62,750      19.05          August 1st, 2001          August 31st,
2001
12             62,750      18.85          September 3rd, 2001       September
28th, 2001
13             62,750      18.75          October 1st, 2001         October
31st, 2001
14             62,750      18.55          November 1st, 2001        November
30th, 2001
15             62,750      18.45          December 3rd, 2001        December
31st, 2001
16             51,750      18.25          January 1st, 2002         January
31st, 2002
17             51,750      18.15          February 1st, 2002        February
28th, 2002
18             51,750      17.95          March 1st, 2002           March 29th,
2002
19             51,750      17.85          April 1st, 2002           April 30th,
2002
20             51,750      17.75          May 1st, 2002             May 31st,
2002
21             51,750      17.65          June 3rd, 2002            June 28th,
2002
22             51,750      17.55          July 1st, 2002            July 31st,
2002
23             51,750      17.55          August 1st, 2002          August 30th,
2002
24             51,750      17.45          September 2nd, 2002       September
30th, 2002
25             51,750      17.45          October 1st, 2002         October
31st, 2002
26             51,750      17.35          November 1st, 2002        November
29th, 2002
27             51,750      17.25          December 2nd, 2002        December
31st, 2002

</TABLE>

REFERENCE PRICE:    The unweighted arithmetic average of the Component
                    Prices as traded on the International Petroleum
                    Exchange ("IPE"), during the relevant Calculation
                    Period and, as used herein;

                    (1)  "Component Price" shall mean for any IPE Business
                    Day, the official IPE settlement price per barrel ,
                    quoted for such day by the IPE, of the Reference
                    Contract and;

                    (2)  "Reference Contract" shall mean, for any IPE
                    Business Day, the first nearby IPE futures contract for
                    the specified commodity which expires on or after such
                    date , except that on the last trading day of the then
                    first nearby futures contract the price of the second
                    nearby futures contract shall be used instead and;

                    (3)  "IPE" Business Day" shall mean, any day on which
                    the IPE would normally be open for business.

CASH SETTLEMENT
AMOUNT(S):          In respect of each Calculation Period:

                    (Strike Price - Reference Price) X Option Quantity

                    If positive, the Seller shall make settlement to the
                    Buyer as instructed.

                    If negative, no settlement shall be due.

CASH PAYMENT DATE(S):

CALCULATION
PERIOD                PAYMENT
NO.                   DATE(S)

1                     November 7th, 2000
2                     December 7th, 2000
3                     January 5th, 2001
4                     February 7th, 2001
5                     March 7th, 2001
6                     April 6th, 2001
7                     May 7th, 2001
8                     June 7th, 2001
9                     July 6th, 2001
10                    August 7th, 2001
11                    September 7th, 2001
12                    October 5th, 2001
13                    November 7th, 2001
14                    December 7th, 2001
15                    January 7th, 2002
16                    February 7th, 2002
17                    March 7th, 2002
18                    April 5th, 2002
19                    May 7th, 2002
20                    June 7th, 2002
21                    July 5th, 2002
22                    August 7th, 2002
23                    September 6th, 2002
24                    October 7th, 2002
25                    November 7th, 2002
26                    December 6th, 2002
27                    January 7th, 2003

PARTICULAR
PROVISIONS:

CALCULATION
AGENT:              DBNY shall make Reference Price calculations to 3
                    decimal places, and all cash settlements shall be
                    rounded to the nearest cent.

MARKET
DISRUPTION
EVENT:              If either party determines in good faith that there has
                    been a suspension or material limitation in futures
                    trading in the Commodity (a "Market Disruption Event")
                    and that such Market Disruption Event is continuing on
                    any IPE Business Day during the Calculation Period,
                    then no Component Price for such day shall be included
                    in the determination of the Reference Price.  If,
                    however, there have been at least five IPE Business
                    Days in the Calculation Period on which a Market
                    Disruption Event has occurred or is continuing, then a
                    Component Price shall be calculated for any subsequent
                    IPE Business Day during the Calculation Period on which
                    a Market Disruption Event has occurred or is
                    continuing, but in such case the Component Price shall
                    be the unweighted arithmetic average of the quotations
                    provided on such day by at least two but not more than
                    five leading dealers in the Commodity for delivery of
                    the Commodity in the month of expiration of the
                    relevant futures contract. The party making such
                    determination shall use all reasonable efforts to give
                    notice to the other party of any Market Disruption
                    Event.

GOVERNING LAW:      This Trade Acknowledgement shall be governed by English
                    Law.

PREMIUM
PAYMENT
DATE:               February 17th, 2000

PAYMENT
CURRENCY:           USD

SETTLEMENT
INSTRUCTIONS:       Settlement, due for our account if any, will be made
                    to:

                    Bankers Trust Company
                    1 BT Plaza
                    130 Liberty Street
                    New York, NY 10006
                    U.S.A.

ACCOUNT OF:         Bankers Trust International PLC

ACCOUNT NUMBER:     04-025-168   ABA #021-001-033

ATTENTION:          Commodities / BT Ref: 2022  CHAP

WE WILL PAY
YOU AT:             We shall make any settlement due to you according to
                    your instructions to be forwarded to us as soon as
                    possible under separate cover, by letter or telex. We
                    shall make no such payment without such instructions.

Please confirm that the foregoing correctly sets forth the terms of our
agreement by sending a FAX to such effect to the attention of Siri Wood,
Commodity  Derivative  Operations  Department, facsimile  No. INT'L 011+ 44-
171-545-4250 or telex No. 94015555 Printer 57 (please mark Attn.
Commodities Dept). If you have any queries, please call us on our UK TOLL
FREE No. 1-800- 564-1471

Please check this confirmation carefully and immediately upon receipt so
that errors and discrepancies can be promptly identified and rectified.

We are pleased to have concluded this transaction with you.

Best regards

Agreed,

FOR DEUTSCHE BANK AG - NEW YORK BRANCH

Authorised Signatory               Authorised Signatory

Yours faithfully,
for and on behalf of
DEUTSCHE BANK AG NEW YORK

By: /s/ WILLIAM CHESNA             By: /S/ JOHN MCMULLAN
    -------------------------          ----------------------
Name:  William Chesna              Name:  John McMullan
Title:  Vice President             Title:  Associate

CHAPARRAL RESOURCES INC

Authorised signatory

/s/ Michael B. Young

By _____________________________
Name: Michael B. Young
Title:   Treasurer
Dept:

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