Document:

EXHIBIT 10.2
                              EXPLORATION CONTRACT

                            (TRANSLATED FROM RUSSIAN)

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                                    CONTRACT

           for exploration of hydrocarbons in Yuzhny Alibek Oil Field
    partially located within the limits of the exploration blocks XXII-23-D,E
                   in Mugojar District, Aktyubinskaya Oblast',
           in accordance with the License AE No 1557 as of 29.04.1999

                                     between

                      AGENCY OF THE REPUBLIC OF KAZAKHSTAN
                                 ON INVESTMENTS

                                (Competent Body)

                                       and

                       JOINT-STOCK COMPANY "KASPIY NEFT'"

                                  (Contractor)

                                  Astana - 2000
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<PAGE>

                                    CONTENTS

Preamble......................................................................
Section 1. Definitions........................................................
Section 2. Purpose of Contract................................................
Section 3. Term of Contract...................................................
Section 4. Contractual Area...................................................
Section 5. Title to property and information..................................
Section 6. Right of the State to acquire and requisition of minerals (oil)....
Section 7. General rights and obligations of the Parties......................
Section 8. Working Program....................................................
Section 9. Exploration Period.................................................
Section 10. Commercial  Oil Pool Discovery....................................
Section 11. Accounting and Reporting..........................................
Section 12. Measuring.........................................................
Section 13. Execution of Sub-contractual Works................................
Section 14. Financing.........................................................
Section 15. Taxes and Payments................................................
Section 16. Accountancy.......................................................
Section 17. Insurance.........................................................
Section 18. Liquidity and liquid fund.........................................
Section 19. Protection of Subsoil and Environment.............................
Section 20. Safety of Local Population and Personnel..........................
Section 21. Force-Majeure.....................................................
Section 22. Confidentiality...................................................
Section 23. Assignment of Rights and Obligations..............................
Section 24. Applicable Law....................................................
Section 25. Procedure for Settlement of Disputes..............................
Section 26. Guarantees of Contract Stability..................................
Section 27. Conditions for Termination and Suspension of Contract.............
Section 28. Language of Contract..............................................
Section 29. Additional Provisions.............................................

Appendices:

No 1 - License AE No 1557 as of 29.04.99.
No 2 - Working Program (Exploration Period)
No 3 - Approvals and Experts Conclusions

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     The present Contract for Exploration of Hydrocarbons in Alibek Yuzhny field
partially located within the limits of the exploration blocks XXII-23-D,E in the
territory of Mugojar District, Aktyubinskaya Oblast', Republic of Kazakhstan was
concluded  on the  7th of  March,  2000,  between  Agency  of  the  Republic  of
Kazakhstan  on  Investments  (hereinafter  referred  to as  Competent  Body) and
Joint-Stock Company "Kaspi Neft'"  (hereinafter  referred to as Contractor) as a
holder of the License AE No 1557 as of 29.04.1999.

                                    PREAMBLE

     WHEREAS

1.   Subsoil  and all  Mineral  Wealth  contained  are  government  property  in
     accordance with the Constitution of the Republic of Kazakhstan.

2.   Republic  of  Kazakhstan  is  willing  to conduct  efficient  and  rational
     utilization of Mineral Wealth  including  exploration and test operation of
     Alibek Yuzhny Oil Field.

3.   Contractor  is willing and  financially  capable to conduct  efficient  and
     rational exploration works.

4.   Government of the Republic of Kazakhstan  has  authorized the Agency of the
     Republic of Kazakhstan on Investments to conclude and execute the Contract.

5.   Competent  Body and  Contractor  have agreed that their  mutual  rights and
     obligations  in  Exploration  of  Hydrocarbons  will  be  regulated  by the
     Contract.

NOW THEREFORE, Competent Body and Contractor have agreed as follows:

                             SECTION 1. DEFINITIONS

     The terms and  definitions  not  explained  in this  Section  will have the
meaning  attached  to them in the Decree of the  President  of the  Republic  of
Kazakhstan "On Subsoil and Subsoil Use" as of January, 27, 1996, acting as a law
(hereinafter  referred to as Decree "On Subsoil") and other  legislative acts on
specific minerals and technogenic mineral formations.

1.   State (Republic) shall mean Republic of Kazakhstan.

2.   Governmental  Body shall mean a central  executive  body of the Republic of
     Kazakhstan  authorized  to execute  definite  functions  in the name of the
     State (Republic).

3.   Mining Allocation shall mean a document attached to the License determining
     spatial boundaries of the subsoil area allocated for execution of the works
     specified in the License.

4.   Contractual  Year  shall  mean a period of 12  (twelve)  successive  months
     according  to the  Gregorian  Calendar;  in the context of the  Contract it
     begins from the effective date of the Contract.

5.   Effective  Date of the Contract shall mean the date given in Paragraph 3.1.
     of the Contract.

6.   Legislation  on  Subsoil  Use shall  mean  Decree of the  President  of the
     Republic of  Kazakhstan  "On Subsoil  and Subsoil  Use" as of January,  27,
     1996, operating as a law and other legislative acts.

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7.   Commercial   discovery   shall  mean   discovery  one  or  several   fields
     commercially fit for Production in the Contractual Area.

8.   Competent  Body  shall  mean  Agency  of  the  Republic  of  Kazakhstan  on
     Investments  delegated with the rights  directly  connected with conclusion
     and execution of the Contract.

9.   Contract shall mean the present Contract for Exploration of hydrocarbon raw
     materials in Alibek Yuzhny oil field between  Competent Body and Contractor
     as well as all the Appendices to the Contract.

10.  Contractual  Area  shall  mean  the  territory  specified  in  the  License
     (Appendices  1,2,3)  by the  geographical  coordinates  and  allocated  for
     execution of exploration works.

11.  License shall mean the License AE No 1557 (oil) as of 29.04.1999  issued by
     the  Government of the Republic of Kazakhstan  to the  Joint-Stock  Company
     "Kaspi Neft'" to conduct exploration of hydrocarbon raw materials in Alibek
     Yuzhny  Oil Field  located  in  Mugojar  District,  Aktyubinskaya  Oblast',
     Republic of Kazakhstan.

12.  Licensing Body shall mean "Licensor"  executive body with the competence to
     issue licenses in accordance with the applicable law.

13.  License  Works  shall  mean all works  under the  License  and  Exploration
     Contract.

14.  Oil  Field  shall  mean  Alibek  Yuzhny  oil  field  or a part  of  subsoil
     containing a natural accumulation of oil.

15.  Taxes shall mean all the taxes and other  compulsory  payments  paid to the
     state budget of the Republic of Kazakhstan,  local budgets and  non-budget.
     Funds.

16.  Tax  legislation  shall mean  Decree of the  President  of the  Republic of
     Kazakhstan "On Taxes and other  Compulsory  Payments to the Budget" No 2235
     as of  April,  24,  1995,  operating  as a law,  with  all  amendments  and
     alterations,  and other  legislative and legal laws  regulating  payment of
     taxes and fees.

17.  Subsoil shall mean a part of the earth's crust beneath edaphic (soil) layer
     and in the absence of the latter - beneath earth surface and floor of water
     reservoirs  extending  down  to  the  depths  accessible  for  Subsoil  Use
     Operation with consideration for technological progress.

18.  Subsoil Use Operations shall mean operations  relating to exploration works
     conducted in the Contractual Area under the License.

19.  Oil Operations shall mean operations  relating to Exploration,  Production,
     Construction and Operation of underground storing capacities and reservoirs
     of oil,  Construction  and Operation of Oil and Gas  Pipelines  executed in
     land within the limits of rivers,  lakes and other inland waters as well as
     Marine Oil Operations.

20.  Contractor shall mean Subsoil User, i.e. "Kaspi Neft'" Joint-Stock  Company
     which has concluded the Contract with the Competent Body.

21.  Government shall mean Government of the Republic of Kazakhstan.

22.  Accompanying  Useful Minerals shall mean the components  produced  together
     with the essential mineral.

23.  Positive  practice  of Oil Field  Development  shall mean  established  and
     generally accepted world practice of Oil Operations considered as rational,
     safe, efficient and necessary in conducting of Oil Operations.

24.  Exploration  shall mean  operations  relating to search of useful  minerals
     fields and their evaluation.

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25.  Working  Program shall mean all types of design work to be implemented  for
     exploration the Contractual Area.

26.  Hydrocarbon Raw Materials shall mean oil, gas and condensate.

27.  Parties shall mean Competent Body and Contractor  where they are determined
     collectively.

28.  Subcontractor  shall mean a legal body or natural  person who has concluded
     an  agreement   with   Contractor  on  execution  of  a  specific  part  of
     Contractor's obligations under the Contract.

29.  Third Party  shall mean any  natural or legal body except for the  Contract
     Parties.

30.  Proved  Reserves  shall mean  geological  and  extractable  oil reserves of
     Alibek Yuzhny Oil Field evaluated by the state examination.

31.  Bonuses  shall mean  payments  made at the time of specific  periods of the
     Contract  realization:  "signing  bonus"  (for  signing  of the  Contract),
     "commercial discovery bonus" (for discovery of a commercial oil field).

32.  Royalty shall mean payments for the right to use subsoil during the process
     of  hydrocarbon  production.  In case of test  operation,  royalty for test
     operation shall be specified.

33.  Construction  works shall mean operations for construction and operation of
     underground facilities of general purpose and for disposal of wastes

34.  Production  works shall mean  operations  relating to  extraction of useful
     minerals  from the  subsoil to the land  surface  and from the  technogenic
     mineral  formations  as the  state  property  including  all  technological
     operations up to processing of mineral raw materials.

35.  Rate of discount shall mean the coefficient used for balancing expenditures
     and returns by the beginning of the Contractor's works.

36.  Customs  payments  shall mean all taxes,  fees and duties  specified in the
     register of customs duties in accordance  with normative  legal acts of the
     Republic of Kazakhstan.

                       SECTION 2. PURPOSE OF THE CONTRACT

2.1.          The purpose of this Contract is execution of efficient  geological
              exploration  as  well  as  determination  and  legal  registration
              contractual  relations  between the Parties in accordance with the
              applicable legislation of the Republic of Kazakhstan.

                         SECTION 3. TERM OF THE CONTRACT

3.1.          The  Contract  becomes  effective  from the  time of its  official
              registration  in the authorized  body and is valid during the time
              specified in Paragraph 4 of the License.

3.2.          Term of the  Contract  expires on the last day of operation of the
              License.

3.3.          The term of the Contract may be extended  only after  extension of
              the License.

3.4.          When  extended  the terms and  conditions  of the  Contract may be
              changed by written agreement of the Parties if such changes are in
              compliance with the provisions of the License.

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                          SECTION 4. CONTRACTUAL AREA

4.1.          Contractor  carries out  exploration of hydrocarbon  raw materials
              within the limits of the  Contractual  area in accordance with the
              License and provisions of the Contract.

4.2.          If  during   exploration   of   hydrocarbon   raw   materials  the
              geographical  boundaries  are found to go beyond  the  Contractual
              Area then the issue of its  extension  shall be  decided by making
              additional provisions into the Contract.

4.3.          Return  of the  Contractual  Area  except  for  the  area  where a
              commercial discovery is made will be executed after 2005.

               SECTION 5. PROPERTY RIGHTS TO STOCK AND INFORMATION

5.1.          All tangible and intangible  assets acquired by the Contractor for
              exploration  of  hydrocarbonic  raw  materials are property of the
              Contractor.

5.2.          Property rights to stock and other property laws indicated in 5.1.
              may be put in pledge or encumbered otherwise to the benefit of the
              Third Party in order to provide  financing of exploration works in
              accordance with the legislation of the State.

5.3.          The  Contractor  shall acquire the  Information  on Subsoil in the
              Contractual  Area owned by the State in the  Republican  Center of
              geological  information  of the Ministry of natural  resources and
              protection  of  environment  of the Republic of  Kazakhstan in the
              order established by the legislation of the State.

5.4.          Information  on  geological  structure  of  the  subsoil,   useful
              minerals  contained,  geological  parameters  of the  oil  fields,
              volume of the reserves,  development conditions and other features
              of the subsoil  contained in  geological  reports,  maps and other
              materials  are  owned  by the  State  if they  are  obtained  from
              budgetary allocations and they are owned by the Contractor if they
              are obtained from its owned funds.

5.5.          Geological  and  other  information  on  Subsoil  obtained  by the
              Contractor in the process of exploration of hydrocarbons  shall be
              duly transferred for storing,  systematization and analysis to the
              Republican  Center of  geological  information  of the Ministry of
              Natural Resources and Environmental  Protection of the Republic of
              Kazakhstan.

5.6.          Utilization of the geological  information on Subsoil  obtained at
              the expense of the Contractor for training,  research,  commercial
              and other purposes and  transferred  in accordance  with Paragraph
              5.5 of the Contract shall be determined on the basis of a separate
              agreement  between  Contractor and Republican Center of Geological
              Information of the Ministry of Natural Resources and Environmental
              Protection of the Republic of  Kazakhstan  in accordance  with the
              Decree No 1357 as of 7.11.96. of the Government of the Republic of
              Kazakhstan "On approval of Regulations for Geological  Information
              owned  by the  State  and  the  order  of its  use  for  training,
              research, commercial and other purposes".

5.7.          On termination of the Contract all geological information shall be
              transferred  to the State  property.  The Contractor is obliged to
              transfer  all  the  documents  and  other  material   carriers  of
              geological   information  on  a  gratis  basis  including  primary
              information to the Republican Center of Geological  Information of
              the Ministry of Natural Resources and Environmental  Protection of
              the Republic of Kazakhstan.

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    SECTION 6. RIGHT OF THE STATE TO ACQUIRE AND REQUISITE OF USEFUL MINERALS

6.1.          In case of war, natural disasters or other emergencies  stipulated
              by the  law on  emergencies,  the  Government  has  the  right  to
              requisite  a part or all  hydrocarbons  owned  by the  Contractor.
              Requisition  may be exercised to the extent  required for needs of
              the State throughout the whole period of the emergency situation.

6.2.          The State guarantees compensation for requested useful minerals in
              kind or  reimbursing  for the cost on the  basis  of world  prices
              operating  on the day of  requisition  (for a  foreign  contractor
              reimbursement  is made in convertible  currency and for a national
              contractor - in national currency of the State).

6.3.          The State has the priority right to acquire  hydrocarbons from the
              Contractor  at the prices not higher than  existing  world prices.
              The limiting volume of the acquired  hydrocarbons  shall be 50% of
              all produced hydrocarbons at the prices not lower than cost price.

            SECTION 7. GENERAL RIGHTS AND OBLIGATIONS OF THE PARTIES

7.1.          CONTRACTOR HAS THE RIGHT:

7.1.1.        To carry out exploration of  hydrocarbons in the Contractual  Area
              on an exclusive basis.

7.1.2.        To make any independent legal actions on use of subsoil within the
              limits of the  Contractual  Area in accordance with the provisions
              stipulated in the License and the Contract.

7.1.3.        In the  Contractual  Area and if  necessary in other plots of land
              allotted to the Contractor in an established  order,  to construct
              objects  of   productive   and  social   sectors   essential   for
              implementation  of exploration and production  works in accordance
              with the applicable laws.

7.1.4.        To use objects and communications of collective use as agreed with
              their  owners  both in the  Contractual  Area and  outside  of its
              limits.

7.1.5.        To conduct  negotiations  on extension of the term of the Contract
              on a priority basis in accordance with the procedure determined in
              Paragraph 3.3. of the Contract.

7.1.6.        To invite  Subcontractors  for  implementation  of specific  works
              related to exploration work.

7.1.7.        To assign all or a part of his rights to other  persons  complying
              with the provisions of the Contract and legislation of the State.

7.1.8.        Contractor may appoint Operator of the Contract at any time of the
              term of the Contract and both  Contractor  or any other person may
              by appointed as Operator hereby.

7.1.9.        To terminate  his  activities in  accordance  with the  provisions
              stipulated in the Contract and legislation of the State.

7.1.10.       In case of termination  of the Contract,  Contractor has the right
              to dispose of his owned property.

7.1.11.       To conduct  exploration  works  strictly  in  accordance  with the
              legislation of the State and Working Program.

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7.2.          CONTACTOR IS OBLIGED:

7.2.1.        Within 90 days after  registration  of the  Contract,  to commence
              implementation of the Working Program.

7.2.2.        To use the most efficient  methods and technologies in exploration
              of hydrocarbons  based on the norms and standards  accepted in the
              world practice.

7.2.3.        To use  Contractual  Area only for the purposes  stipulated in the
              License and present Contract.

7.2.4.        Not to prevent  other  persons to move freely within the limits of
              the  Contractual  Area,  to  use  objects  and  communications  of
              collective  use or conduct  any works  including  exploration  and
              extraction  of any  other  natural  resources  except  oil if such
              activities do not require  special safety measures and they do not
              interfere with exploration works.

7.2.5.        To observe  duly agreed  technological  designs and  projects  for
              exploration  of  hydrocarbons  safe for the  personnel  and  local
              population.

7.2.6.        To prefer  equipment,  materials and finished products made in the
              State provided that they are competitive  ecological and technical
              specifications,    prices,   working   parameters   and   delivery
              conditions.

7.2.7.        To give priority to the State  organizations  and  institutions in
              using services for  exploration of  hydrocarbons  including use of
              air, railway and water transport  provided that these services are
              able to meet competition in price, efficiency and quality.

7.2.8.        In  conducting  exploration  of  hydrocarbons,  to  take  part  in
              development  of social  sector of the Region and give  priority to
              local  personnel  provided  that they have proper  experience  and
              qualification.

7.2.9.        To submit  Working  Program and progress  reports to the Competent
              Body.

7.2.10.       To finance (no less than 1% of annual capital cost of the licensed
              object) professional training of local personnel used in the works
              under the Contract.

7.2.11.       To submit  all  necessary  documents,  information  and  unimpeded
              access of the inspecting  bodies of the State to the working sites
              as they fulfill their duties and eliminate  appropriately  all the
              violations found.

7.2.12.       If required to transfer  information related to Exploration to the
              third parties only with written consent of the other Party.

7.2.13.       To  pay  timely  all  taxes  and  other  compulsory   payments  in
              accordance with the law of the State and the Contract.

7.2.14.       In his activities,  to preserve objects of cultural and historical
              importance located in the Contractual Area.

7.2.15.       To forecast  long-term  ecological  consequences of his activities
              under the  Contract and submit  these  forecasts to the  Competent
              Body and  public  organs of  environmental  protection;  the final
              forecast  to  be   submitted   not  later  than  one  year  before
              termination of the Contract.

7.2.16.       To  leave  the   Contractual   Area  in  the  state   meeting  the
              requirements of Mining and Sanitary  Supervision and protection of
              subsoil and environment.

7.2.17.       To restore the plots of land and other natural  objects damaged as
              a  result  of the  activities  of  the  Contractor  to the  extent
              adequate  for  further   utilization   in   accordance   with  the
              legislation of the State.

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7.2.18.       To compensate  fully damages  resulting from the activities of the
              Contractor  and  inflicted  on  environment,  personnel  and other
              organizations and population.

7.2.19.       Contractor  carries  out Oil  Operations  in  accordance  with the
              License and Working  Program agreed with the  Authorized  Body for
              supervision of safe procedure of work.

7.3.          OBLIGATIONS OF THE COMPETENT BODY:

7.3.1.        To provide for fulfillment and cancellation of the Contract in the
              order  and on the  grounds  envisaged  in the  legislation  of the
              State.

7.3.2.        To submit  his  proposals  on  withdrawal  or  alterations  of the
              License to the Licensing Body.

7.3.3.        To  provide  for a plot  of  land  to the  Contractor  for  use in
              accordance with the License.

7.4.          RIGHTS OF THE COMPETENT BODY:

7.4.1.        To  represent  the State in talks  with the  Contractor  regarding
              terms and conditions of the Contract.

7.4.2.        In the process of  execution  of the  Contract,  to  approach  the
              Licensing Body with proposals on modification of the provisions of
              the License.

7.4.3.        To demand  regular  and sample  reporting  on  fulfillment  of the
              provisions of the Contract.

7.4.4.        To carry out inspection of the exploration works of the Contractor
              relating to his activity under the Contract.

7.4.5.        To have access to any works in the  Contractual  Area  relating to
              Exploration of Hydrocarbons.

                           SECTION 8. WORKING PROGRAM

8.1.          Contractor executes Exploration of Hydrocarbons in accordance with
              the Working Program agreed with the Authorized Body on utilization
              and protection of subsoil.

8.2.          Contractor may submit proposals on modification and/or addition of
              the  agreed  Working   Program.   Modifications,   amendments  and
              additions  of the  Working  Program  are made in  written  form if
              mutually agreed by the Parties.

                          SECTION 9. EXPLORATION PERIOD

9.1.          Exploration  Period consists of six successive  years according to
              the License and may be  extended  twice as mutually  agreed by the
              Parties with each period of extension as long as two years. Hereby
              the Parties shall determine the part of the  Contractual  Area for
              further  exploration and make  appropriate  changes in the Working
              Program.

9.2.          As Exploration works proceed, in case of commercial  discovery the
              Contractor may retain the whole territory for himself.

9.3.          The Contract terminates upon expiry of the Exploration Period with
              regard to specific  extensions if no commercial  discoveries or no
              decision on transition to the  Production  Period were made in the
              Contractual Area. If the Contractor refuses to continue operations
              under the Contract then he forfeits all the rights on the

                                      106
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              Contractual  Area and may not  claim for any  compensation  of the
              expenses under the Contract.

                        SECTION 10. COMMERCIAL DISCOVERY

10.1.         If the  Contractor  makes a discovery of any  commercial  field of
              hydrocarbon   raw   materials   which  can  be,  to  his  opinion,
              economically  profitable  then  he  will  immediately  inform  the
              Competent Body thereof and within 30-day period  develops  Working
              Program in order to evaluate its reserves and information required
              for determination of profitability of the Field.

10.2.         Within  Exploration  Period,  the Contractor will submit Design of
              Test  Operation   (Exploration)  to  the  Central  Commission  for
              Exploration (CCE).

10.3.         The Contractor will execute Test Operation  (Exploration)  without
              conservation and draw up relevant  documents  essential for expert
              assessment of the field reserves.

10.4.         Commercial  Discovery  entitles the Contractor  with the exclusive
              right for conclusion  Production Contract provided that provisions
              of the License and the Contract are met.

10.5.         If no Commercial  Discovery is made in the Process of  Exploration
              then  the  Contractor  has no  right to  compensate  the  expenses
              incurred in the process of Exploration.

                      SECTION 11. ACCOUNTING AND REPORTING

11.1.         The  Contractor  undertakes to provide for accounting and within a
              specified  period to keep all documents  pertaining to Exploration
              under the  Contract  in  accordance  with the  Legislation  of the
              State.

11.2.         Prior to the 10th day of the following  month, the Contractor will
              submit to the  Competent  Body a detailed  report on his  business
              activity in the preceding quarter.

11.3.         The  Contractor  will submit  reports on his business  activity to
              relevant  state organs in the order and within a specified  period
              of time according to the Legislation of the State.

11.4.         The  Competent  Body will have the right to conduct  inspection of
              adherence of the  Contractor  to the terms and  conditions  of the
              Contract and may attend, through his representatives,  the site of
              Exploration conducted by the Contractor.

                             SECTION 12. MEASUREMENT

12.1.         Measurement  and weighing of Crude Oil produced in the Contractual
              Area  shall be  taken by the  Contractor  in  accordance  with the
              methods and practice accepted in the State.

12.2.         Contractor  with the  participation  of the  Competent  Body shall
              conduct  annual tests of the  equipment and  instruments  used for
              weighing and measurement of Crude Oil.

12.3.         If the tests or inspection  detect any defect of the equipment and
              instruments  and  the  time of the  defect  cannot  be  determined
              properly  then the time of the  defect is  determined  as half the
              time from the previous  measurement to the day of detection of the
              defect.

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12.4.         If the Contractor considers it is essential to make any changes in
              the method of  measurement  or replace the  measuring  instruments
              installed then he must provide  notification to the Competent Body
              not later than 15 days before so that the  representatives  of the
              Competent Body can be present as these changes or replacement take
              place.

                    SECTION 13. EXECUTION OF SUBCONTRACT WORK

13.1.         Contractor  submits to the  Competent  body a plan of  subcontract
              work, a list of  subcontracts  for supply of materials,  equipment
              and  services as a part of the Working  Program to be concluded in
              the next calendar year with estimated costs of the subcontracts as
              well as a list of potential local and foreign subcontractors.

13.2.         In  conclusion  of all  subcontracts,  the  Contractor  will  give
              priority to services,  equipment,  materials and finished products
              made in the State if they are competitive in their  ecological and
              technical specifications,  prices, working parameters and terms of
              delivery.

13.3.         Subcontractors  are  invited  by the  Contractor  as a  rule  on a
              competitive basis.

13.4.         Contractor is responsible  for execution of  subcontract  works in
              accordance with the legislation of the State.

                              SECTION 14. FINANCING

14.1.         Contractor shall assume  responsibility  for full financing of his
              activities  under the  Contract  in  accordance  with the  Working
              Program agreed by the Parties.

14.2.         Contractor  may freely obtain credits for financing his activities
              in any currency  both in the State and outside if it complies with
              the legislation of the State.

14.3.         Contractor may have accounts both in national and foreign currency
              in the banks of the State and outside for the purpose of execution
              of the Contract in order to receive monetary resources as receipts
              and earnings from the Contract.

                         SECTION 15. TAXES AND PAYMENTS

15.1.         In  connection  with  the  activities  under  the  Contract,   the
              Contractor undertakes to pay taxes and payments in accordance with
              Tax  Legislation  of the Republic of Kazakhstan  and provisions of
              the Contract.  Whatever the organizational form of the Contractor,
              he shall be  considered  as a single  taxpayer for the purposes of
              calculation   of  taxes  and  payments  in  connection   with  the
              activities under the Contract.

15.2.         Contractor undertakes to pay the following taxes and payments:

15.2.1.       Income tax for legal  entities.  The Contractor is responsible for
              full  deduction  and  transfer  to the  budget of the  income  tax
              withheld at the source of payment in accordance with Section II of
              the  Law of  the  Republic  of  Kazakhstan  "On  taxes  and  other
              compulsory  payments  to  budget"  No 2235 as of April,  24,  1995
              (hereinafter  referred to as Tax Code) applicable on the effective
              date of the Contract.

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15.2.1.1.     Income tax for legal entities shall be paid at the rates specified
              in Articles 30-33 and 37 of Tax Code.

15.2.1.2.     The Contractor is  responsible  for full deduction and transfer to
              budget of income tax on legal  entities  withheld at the source of
              payment in accordance  with  provisions of the Tax Legislation and
              international  agreements  ratified by the Republic and applicable
              on the date of emergence of tax obligations  with the exclusion of
              dividend tax  calculated  in accordance  with the Tax  Legislation
              applicable on the Effective  Date of the Contract.  In the case of
              establishment of permanent  representation  of non-resident  legal
              entity  then the  Contractor  in  addition  to income tax shall be
              imposed with a tax on net income of this permanent  representation
              calculated in accordance  with the Tax  Legislation  applicable on
              the Effective Date of the Contract.

15.2.2.       Value-added tax (VAT). The Contractor shall pay value-added tax in
              accordance with Section III of the Tax Code.

15.2.3.       Excises.  The  Contractor  shall pay  excises in  accordance  with
              Section IV of the Tax Code.  The excisable  goods are  exclusively
              those listed in Article 76 of the Tax Code.

15.2.4.       Special taxes and payments of subsoil users:

15.2.4.1.     Signing  Bonus.  The  Contractor  shall pay  Signing  Bonus in the
              amount of 100000 (one hundred  thousand)  US dollars.  The Signing
              Bonus shall be paid within 30 days from the Effective  Date of the
              Contract.

15.2.4.1.1.   The Contractor  shall submit the  Declaration on the Signing Bonus
              to the Regional Tax Department in the place of registration  prior
              to the 10th day of the month following a reporting one.

15.2.4.2.     Bonus  of  Commercial  Discovery.  The  amount  of  the  Bonus  of
              Commercial  Discovery  shall be  determined  in the  Contract  for
              Production  or for  Exploration  and  Production  concluded by the
              Contractor for the oil fields located in the Contractual Area.

15.2.4.3.     Royalty.  The amount of the  Royalty  shall be  determined  in the
              Contract  for  Production  or  for   Exploration   and  Production
              concluded  by the  Contractor  for the oil  fields  located in the
              Contractual Area.

15.2.4.3.1.   In the event of test production of hydrocarbons  within the limits
              of the Contract,  the Contractor  shall pay royalty at the rate of
              2% of the volume of hydrocarbons produced.

15.2.4.3.2.   The object of royalty taxation shall be the volume of the produced
              hydrocarbons  calculated in cost value on the basis of the average
              selling price of the hydrocarbons for the reporting period without
              regard of indirect taxes and reduced by the sum of actual expenses
              for transportation to the place of sale.

15.2.4.3.3.   In  the  event  of  production  of  common  useful   minerals  and
              underground  water,  the Contractor shall pay royalty at the rates
              and in the order  established by the Tax Legislation  effective on
              the date of emergence of payment obligations.

15.2.4.3.4.   Royalty  shall be paid on a monthly  basis not later than the 15th
              day of the month following a reporting one.

15.2.4.3.5.   A reporting period for royalty is a calendar month.

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15.2.4.3.6.   Royalty  declaration  shall be submitted to the tax body not later
              than  the  10th  day of  the  month  following  a  reporting  one.
              Declaration form shall be approved by an authorized state body.

15.2.4.3.7.   Money form of royalty  payment  may be replaced by payment in kind
              in  the  order  established  by the  legislation  with  sending  a
              notification  on the order of  payment to the  Contractor  no less
              than 60 days prior to the time of replacement.

15.2.4.4.     Compensation of historical expenses.

15.2.4.4.1.   Total Cost of all expenses on  prospecting  and  exploration  work
              (historical  expenses) in the licensed  area of the Alibek  Yuzhny
              oil field  incurred  for the account of the Budget of the Republic
              amounts to 2 831 630 (two  million  eight  hundred  and thirty one
              thousand and six hundred and thirty) US dollars.

15.2.4.4.2.   The  Contractor  undertakes  to pay 0,5% of the sum  specified  in
              15.2.4.4.1.  to the  budget  of the  Republic  of  Kazakhstan  and
              amounting to 14 158  (fourteen  thousand and one hundred and fifty
              eight) US dollars.  The order of payment of historical expenses is
              determined   in  the  Agreement  on   acquisition   of  geological
              information   concluded  between  the  Committee  of  Geology  and
              Protection of Subsoil and the Contractor as of October,  21, 1999,
              No 247.

15.2.4.4.3.   Time and  order  of  payment  of the  remaining  total  sum of all
              expenses for  exploration  works  specified in 15.2.4.4.1.  of the
              Contract and amounting to 2 817 472 (two million and eight hundred
              and  seventeen  thousand  and four  hundred  and  seventy  two) US
              dollars  shall be  determined  in the Contract for  Production  of
              hydrocarbon raw materials to be concluded by the Contractor on the
              oil fields discovered in the Contractual Area.

15.2.4.4.4.   In  the  event  of  setting  up  a  joint   venture  with  foreign
              participation,  the  Contractor  is obliged to pay 5% of the total
              cost  of  historical  expenses  specified  in  15.2.4.4.1.  of the
              Contract for the right to use the information.

15.2.4.4.5.   Report on the amount of  compensation  of the historical  expenses
              shall be submitted to tax authorities in the place of registration
              prior to the 20th day of the month following a reporting  calendar
              quarter.

15.2.4.4.6.   Payments of the sums of  compensation  of the historical  expenses
              shall be made prior to the 25th of the month following a reporting
              calendar quarter.

15.2.4.4.7.   The Contractor  shall be responsible for violation of the order of
              calculation  and  payment  of  the  sums  of  compensation  of the
              historical   expenses   envisaged  by  the  Tax   Legislation  for
              violations  of the order of  calculation  and payment of taxes and
              other compulsory payments to the budget.

15.2.4.5.     Excess  profits tax. In the event of conclusion of the  Production
              Contract, the Contractor shall pay excess profits tax at the rates
              and in the order  established  by the  Legislation  on the date of
              conclusion of the Production Contract.

15.2.5.       Fee  for  registration  of  securities  issue  and  assignment  of
              national identification number for issue of the stocks not subject
              to  state  registration.  The  Contractor  shall  pay  a  fee  for
              registration  of  securities  issue  and  assignment  of  national
              identification number for issue of the stocks not subject to state
              registration in accordance with Section V of the Tax Code valid on
              the date of emergence of payment obligations.

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15.2.6.       Fees for passage of motor transport facilities in the territory of
              the  Republic  of  Kazakhstan   are  paid  by  the  Contractor  in
              accordance  with the Legislation of the Republic valid on the date
              of emergence of payment obligations.

15.2.7.       Payment for use of  radio-frequency  resource  of the  Republic of
              Kazakhstan  shall be paid at the rates  approved  by the Decree of
              the  Government of the Republic of Kazakhstan as of December,  11,
              1996,  No  1526,  valid  on  the  date  of  emergence  of  payment
              obligations.

15.2.8.       Social Tax. The Contractor shall pay Social Tax in accordance with
              Section  VII of the Tax Code  valid on the  effective  date of the
              Contract.

15.2.9.       Land tax. The Contractor  shall pay a land tax in accordance  with
              Section VII of the Tax Code.

15.2.10.      Tax on transport  facilities.  The  Contractor  shall pay a tax on
              transport  facilities in  accordance  with Section VIII of the Tax
              Code.

15.2.11.      Tax on property of legal entities.  The Contractor shall pay a tax
              on property of legal entities in accordance with Section IX of the
              Tax Code.

15.2.12.      Auction fees. The  Contractor  will pay auction fees in accordance
              with the Tax Legislation valid on the date of emergence of payment
              obligations.

15.2.13.      Registration  fee for legal  persons.  The  Contractor  will pay a
              registration  fee for legal  persons  in  accordance  with the Tax
              Legislation valid on the date of emergence of payment obligations.

15.2.14.      License  fee to  acquire  the right of  carrying  out a  specified
              business  activity.  The  Contractor  will  pay a  license  fee to
              acquire the right of carrying  out a specified  business  activity
              fees in accordance with the Tax  Legislation  valid on the date of
              emergence of payment obligations.

15.2.15.      Customs  duties.  The  Contractor  will pay the customs  duties in
              accordance  with the Law of the Republic of Kazakhstan "On Customs
              in the Republic of Kazakhstan as of July, 20, 1995, No 2368,  with
              alterations  and  additions  valid  on the  effective  date of the
              Contract.

15.2.16.      Payment for surface water resources.  The Contractor will effect a
              payment  for  water  used  from the  surface  water  resources  in
              accordance with the Tax Legislation valid on the date of emergence
              of payment obligations.

15.2.17.      Tax on forest utilization (forest income). The Contractor will pay
              a tax on forest utilization (forest income) in accordance with the
              Tax  Legislation  valid on the date of  emergence  of the  payment
              obligations.

15.2.18.      Payments for environmental  pollution.  The Contractor will effect
              payments for the  environmental  pollution in accordance  with the
              Legislation  effective  on the date of  emergence  of the  payment
              obligations.

15.2.19.      Penalties  for violation of the law on  environmental  protection.
              Penalties for violation of the law on environmental protection are
              paid in  accordance  with  the  Legislation  valid  on the date of
              detection of the violation.

15.2.20.      Mandatory  contributions  to the Pension Fund. The Contractor will
              pay mandatory  contributions  to the Pension Fund in the order and
              at the amount  determined by the Tax Legislation on Wages Fund for
              citizens of the Republic of Kazakhstan.

15.2.21.      State tax. The  Contractor  will pay state tax in the order and at
              the  amount   operating  on  the  date  of  emergence  of  payment
              obligations.

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15.2.22.      Payment made by legal and physical  persons for use of the symbols
              of the City of Almaty in their  brands,  service and trade  marks.
              The  Contractor  will make  payments for use of the symbols of the
              City of  Almaty  in  their  brands,  service  and  trade  marks in
              accordance with the Legislation  valid on the date of emergence of
              payment obligations.

15.2.23.      The  Contractor  will pay a fee for using the words  "Kazakhstan",
              "Republic",  "National"  (in  full or any  derivatives)  by  legal
              persons   (except  for  the  state   offices  and   non-commercial
              organizations)  in their company names,  service,  brand and trade
              marks  in  accordance  with the  Legislation  valid on the date of
              emergence of payment obligations.

15.3.         Taxation of personnel.  Personnel of the Contractor will pay taxes
              and other payments in accordance with the Tax Legislation valid at
              the time of emergence of the tax obligations.  The Contractor will
              be responsible for the full and correct deduction of an income tax
              on  natural  persons  from the  source of payment to the budget in
              accordance with the Tax Legislation.

15.4.         Taxation  of  Subcontractors.   The  Contractor  will  advise  his
              subcontractors  which  render  services to him that they and their
              personnel  are  obliged  to pay taxes in  accordance  with the Tax
              Legislation  and the Contractor  will be responsible  for the full
              and correct  deduction  of the taxes from the source of payment to
              the budget.

15.5.         Taxation of assignment of rights.  The incomes from  assignment of
              rights will be subject to taxation in accordance with the Tax Code
              valid on the date of assignment..

15.6.         Transfer  price  formation.  The  Contractor  admits  that the tax
              service  may  control  the prices  used by the  Contractor  in his
              commercial and financial  operations and correct the  Contractor's
              income for the purpose of taxation  according to the Article 138-1
              of the Tax Code.

15.7.         General tax liability.  Taxes paid by the Contractor in accordance
              with the terms of the Contract will not exempt the Contractor from
              the  obligations  to pay  taxes  on his  business  activities  not
              related to the Contract and  established by the legislation of the
              Republic.

15.8.         Tax  demarcation.   For  the  purpose  of  tax  calculation,   the
              Contractor  will not unite the revenues and deductions  related to
              the Contract with the revenues and deductions outside the scope of
              the Contract.

15.9.         Payment  and  placing of taxes and other  payments.  Any taxes and
              payments  determined  in  this  Contract  shall  be  paid  by  the
              Contractor  in  the  order  and  at the  rates  determined  by the
              Legislation of the Republic.

15.10.        All  taxes,  fees  and  duties  shall  be paid in  Tenge  or other
              national  currency   subsequently  used  in  the  Republic  unless
              otherwise  provided  by the  Legislation.  All taxes and  payments
              shall be paid as determined by the  legislation of the Republic to
              the  accounts  indicated by the tax and  financial  service of the
              Republic.

15.10.1.      Penalties and fines.  Penalties and fines for the  infringement of
              the Tax  Legislation  and  untimely  payment  of the  taxes to the
              budget  will be applied  in  accordance  with the Tax  Legislation
              valid at the time of detection of the infringement.

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15.10.2.      Fines. Fines for untimely payment taxes and fees to the budget are
              applied in accordance with the Tax  Legislation  valid on the date
              of detection of the violations.

15.11.        Stability of tax  conditions.  Tax  conditions  determined  by the
              Contract (Tax regime) will be effective  without any changes until
              the Contract is  terminated  with the  exclusion of the cases when
              the  changes  of the Tax  conditions  are  mutually  agreed by the
              Parties of the Contract and do not entail any changes in regard of
              the initial  economic  interests of the Republic of Kazakhstan and
              the Contractor.

15.12.        Access to information.  The Contractor  admits that the tax bodies
              of the Republic will have access to any information related to the
              accounts of the Contractor  including any foreign bank accounts of
              the Contractor including the foreign bank accounts. The Contractor
              agrees  to  submit  to  the  tax  service  of  the   Republic  any
              information  related to such  accounts and hereby waives the right
              of confidentiality which may exist in accordance with the relevant
              provisions of the  Legislation  on bank secrets and other relevant
              laws.

                             SECTION 16. ACCOUNTING

16.1.         The Contractor undertakes to effect full and correct accounting of
              all revenues and expenses  under the Contract in  accordance  with
              the  accounting  procedure  determined by the  Legislation  of the
              State.

16.2.         All  accounting  books and  documents of the  Contractor  shall be
              accessible  for  inspection  by the  Competent  Body and  official
              organs within their  competence  determined by the  Legislation of
              the State.

                              SECTION 17. INSURANCE

17.1.         Within  90 days  from  the  effective  date of the  Contract,  the
              Contractor  will  develop  and  submit to the  Competent  Body for
              approval the  Insurance  Program  against  risks,  properties  and
              liabilities related to the Exploration Program and:

              (1)    transportation  and  warehousing of the goods  delivered to
                     the site of the Exploration works and test production;

              (2)    the  property  of the  Contractor  used  in the  course  of
                     implementation of the Exploration works;

              (3)    the environmental  pollution  including soil as well as the
                     expenses on the  elimination  of the  effects of  pollution
                     including melioration and land restoration;

              (4)    general civil and legal liability for the third parties.

17.2.         The  Contractor  is  obliged  to effect  social  insurance  of his
              employees  against  production  accidents,  occupational  diseases
              including  the costs of medical  treatment of the employees due to
              such cases.

17.3.         The Contractor may choose insurance companies at his discretion in
              accordance with the legislation of the State.

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                  SECTION 18. LIQUIDATION AND LIQUIDATION FUND

18.1.         180 days before the expiration date of the Contract the Contractor
              will  submit to the  Competent  Body for  approval  a  program  of
              liquidation  of the effects of his  activities in the  Contractual
              area under the Contract including the liquidation expense budget.

18.2.         Abandonment and  conservation of oil, gas and other wells shall be
              carried out in accordance with the provisions of the  "Regulations
              on  Conservation  of  Wells  in oil  and gas  fields,  underground
              storing  facilities and thermal water reservoirs" and "Regulations
              on the procedure of  abandonment of the wells and write-off of the
              expenses on their construction".

18.3.         Liquidation  Program shall provide for  elimination or liquidation
              of the  facilities and equipment used in the process of activities
              of the Contractor in the Contractual Area.

18.4.         In order to provide for full financing of the Liquidation Program,
              the Contractor will set up Liquidation Fund in the amount of 1% as
              of Feasibility  Study of the  Exploration  Works.  The Liquidation
              Fund is governed by the Contractor.

18.5.         The allocations to the  Liquidation  Fund in the amount of 1% will
              be effected by the  Contractor  annually and will be included into
              the costs of the Exploration works.

18.6.         If the actual costs of the liquidation exceed the Liquidation Fund
              then  the   Contractor   effects   additional   financing  of  the
              Liquidation.

18.7.         If  the  actual  costs  of  the  liquidation  are  less  than  the
              Liquidation  Fund then the unused  balance will be returned by the
              Government to the Contractor and will be included into the taxable
              revenue of the Contractor.

18.8.         If the  Government  decides  on his own  responsibility  to extend
              operation of all or a part of the facilities transferred to him by
              the Contractor  following the expiration date of the Contract then
              in this  case  the  Contractor  will  bear no  responsibility  for
              implementation  of the Liquidation  Program and will assign to the
              State all the  rights to use the assets  actually  saved up in the
              Liquidation Fund.

            SECTION 19. PROTECTION OF MINERAL WEALTH AND ENVIRONMENT

19.1.         In the process of implementation  of the Petroleum  Operations the
              Contractor will be obliged to observe the Legislation of the State
              relating to  protection  of Subsoil and  Environment  and take all
              necessary measures for the following:

o    protect life and health of local population;
o    ensure rational and complete utilization of Mineral Wealth;
o    preservation of natural  landscapes and  rehabilitation  of disturbed lands
     and other geo-morphological structures;
o    preservation of the energetic  qualities of the upper layers of the Subsoil
     in order to prevent earthquakes, landslips, overflows, terrain subsidence.

19.2.          In the process of exploration  works conducted by the Contractor,
               the  following   requirements  shall  be  of  first  priority:  I
               Ecological Requirements:

o    preservation of environment;
o    prevention of technogenic land desertification;
o    prevention of water and wind erosion of soil;
o    insulation of lost circulation and fresh horizons in order to prevent their
     pollution;   application  of  non-toxic   re-agents  for  drilling  fluids;
     prevention of exhaustion and pollution of underground water;

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o    cleaning and re-circulation of drilling mud;
o    disposal  of remnants of drilling  materials,  fuels and  lubricants  using
     environmentally safe procedures;
     II. Requirements for subsoil protection:
o    to provide for complete and integrated  geological  study of the Subsoil in
     order to carry out a certain  evaluation of the quantities and structure of
     hydrocarbon raw materials in the oil fields and subsoil sections  allocated
     for use including those not connected with production;
o    to ensure rational and complete utilization of the subsoil resources during
     all stages of the Exploration works;
o    reliable accounting of the extracted useful main and accompanying  minerals
     and  products  of  processing  of mineral raw  materials  and wastes in the
     process of the oil field development;
o    to use subsoil in accordance  with the provisions of the Legislation of the
     Republic on protection of environment preserving the subsoil from dangerous
     technogenic  processes during exploration and production of hydrocarbon raw
     materials;
o    protection of subsoil from water invasion, fires, explosions,  collapses of
     superincumbent  rock mass and other natural factors reducing quality of the
     subsoil and complicating development and operation of the Oil Field;
o    to prevent  subsoil  pollution in the process of exploration of hydrocarbon
     raw  materials  especially in  underground  storage of oil and gas or other
     substances and materials,  disposal of hazardous  substances and wastes and
     effluent discharge;
o    to observe  the  procedure  stipulated  by Section 27 of the  Contract  for
     suspension and termination of exploration of the hydrocarbons.
o    To ensure  proper  sanitary  and  ecological  conditions  for  storing  and
     disposing of  industrial  and  household  wastes in order to prevent  their
     accumulation  in catchment areas and in places of occurrence of underground
     waters;
o    to ensure  reliable and correct  evaluation  of the volume and structure of
     the hydrocarbon raw materials including accompanying components;
o    The  Contractor  ensures  complete and reliable  geological,  hydrological,
     ecological,  engineering  and  technological  studies  of  the  objects  of
     exploration of hydrocarbon raw materials.

19.3.          Prior to  commencement  of his  activities  in subsoil  use,  the
               Contractor shall carry out evaluation of the environmental impact
               of the planned  operations  to be agreed with the State  Sanitary
               and Epidemiological Service and permitted by the State organs for
               Nature Protection.

19.4.          Data on  technological  monitoring  and reports on  environmental
               impact  shall  be  submitted   to  the   authorized   bodies  for
               environmental  protection.  19.5.  The  Contractor  is obliged to
               eliminate  environmental  violations  committed by him, carry out
               rehabilitation works and fully compensate damage inflicted in the
               process of implementation of the Contract.

19.6.          State control for observance of the  Legislation on Protection of
               Subsoil and  Environment  is exercised by duly  authorized  state
               bodies.  The project shall be agreed with the State  Sanitary and
               Epidemiological Service.

19.7.          The  Contractor  shall  implement  the  works  on  Protection  of
               Environment in the Contractual Area.

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19.8.          After  termination  of the Contract or return of the  Contractual
               Area by stages,  the Contractor  shall  transfer the  Contractual
               Area in the conditions prior to the operations under the Contract
               and  suitable  for  further  proper  use in  accordance  with the
               Legislation of the State.

19.9.          Any infringements (deterioration) of the environmental conditions
               and the Contractual  Area itself shall be restored at the expense
               of the  Contractor  up to the point  suitable for further  proper
               use.

19.10.         The Subsoil User is obliged to inform  public  opinion  regarding
               ecological  situation  in the  Contractual  Area and its  changes
               resulting from the Exploration works conducted by the Contractor.

19.11.         To make up a  balance  and  organize  a  monitoring  of the wells
               previously drilled in the Contractual Area.

              SECTION 20. SAFETY OF LOCAL POPULATION AND PERSONNEL

20.1.          In the  course of the  implementation  of the  Exploration  works
               under the Contract,  the Contractor will ensure the observance of
               the  safety  norms and  sanitary  regulations  stipulated  in the
               Legislation  as well as he will take actions for  prevention  and
               elimination of the accidents and occupational diseases.

20.2.          The  Exploration  works  presenting  a danger  for human life and
               health shall be prohibited in accordance with the Legislation.

20.3.          The State  Safety  Control for  observance  of the  standards  of
               safety  and  industrial   sanitary  in   implementation   of  the
               Exploration will be carried out by a specially authorized body of
               the Republic.

20.4.          The  general   requirements   of  safe   implementation   of  the
               Exploration  works  are  as  follows:   to  give  access  to  the
               Exploration  works  only to the  persons  specially  trained  and
               qualified as well as the management of the Exploration Works will
               be entrusted  only to the persons  having  proper  education  and
               experience;

o    to supply the working  cloths and the means of  individual  and  collective
     protection  required for personal safety to all the persons involved in the
     Exploration Operations;
o    to  operate  the  machines,  equipment  and  materials  complying  with the
     applicable standards of safety and sanitary;
o    proper  registration,   storing  and  consumption  of  the  explosives  and
     accessories as well as their safe and correct handling;
o    to carry out technical, geological, geodesic and other monitoring necessary
     and sufficient for technological  working cycle and forecasting of possible
     emergencies;
o    to renew technical  documentation  and programs of the average  liquidation
     which make more precise the borders of the areas safe for work;
o    observance of the terms and conditions of the project  systems of Oil field
     Development,   projects   and   technological   designs  for   Exploration,
     Development and Construction of Oil, Gas and Water fields;
o    to carry out relevant sanitary and hygienic actions to prevent professional
     diseases and professional poisoning;
o    to create conditions favorable for health;
o    to organize  routine and  periodical  medical  examination of the employees
     working in harmful and unfavorable conditions;

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o    to organize  lab  instrumental  control of the air in the working  zone and
     monitoring  of  harmful  factors  in working  stations  (noise,  vibration,
     microclimate, severity and labor intensity etc.);
o    to provide for  sufficient  quantity of good potable water and complete set
     of sanitary and amenity premises in accordance with the approved  standards
     and norms.

20.5.          In case of emergence  of any direct  threat to life and health of
               the employees and/or local population,  the executive officers of
               the Contractor are obliged to stop work immediately and to ensure
               evacuation  of the  people to a safe  place and  supply  complete
               information  hereof to the Competent Body and regional  executive
               authorities.

20.6.          To execute all operations  under the Contract for  Exploration of
               Hydrocarbon Raw Materials and  Construction of Oil Fields only in
               accordance with the project designs positively approved by Mining
               Supervision  Department of the Agency on Emergency  Situations of
               the Republic of Kazakhstan.

                            SECTION 21 FORCE-MAJEURE

21.1.          Neither   Party  of  the  Contract   will  be  default  on  their
               obligations  under  the  Contract  if this  default  or  delay in
               fulfillment of their obligations under the Contract occurs due to
               the force-majeure circumstances:

21.2.          The  circumstances  or  events  which  either  Party is unable to
               foresee  and  to  control  include  military  conflicts,  natural
               calamities  and  disasters  (fires  etc).  The given  list is not
               exhaustive.

21.3.          In the event of  force-majeure  circumstances  the damaged  Party
               will notify the other Party at short notice by handing or mailing
               a written  notification  specifying the date of commencement  and
               description of the force-majeure circumstances.

21.4.          In the event of force-majeure circumstances the Parties will meet
               at the  earliest  possible  date in  order  to find an  equitable
               solution of the situation and will take all possible  measures to
               minimize the consequences of the force-majeure.

21.5.          If the Operations  under the Contract are completely or partially
               suspended due to the force-majeure circumstances then the term of
               the  Operations  will  be  extended  for a  period  equal  to the
               duration of this  suspension and resumed from the time of ceasing
               of force-majeur circumstances.

                           SECTION 22. CONFIDENTIALITY

22.1.          The  information  received  or  acquired  by either  Party in the
               process of  implementation  of the  Contract  will be  considered
               confidential,   and  the   Parties   may  use  the   confidential
               information  for drawing up reports  envisaged by the Legislation
               of the Republic.

22.2.          The Parties have no right to transfer confidential information to
               the third  parties  without  consent of the other  Party with the
               exclusion of the following cases:

o    if such information is used in court proceedings;
o    if the information is furnished to the third parties rendering  services to
     the  Contractor  provided that such third party  assumes the  obligation to
     regard this information as

                                      117
<PAGE>

     confidential  and to use it only for the purposes  specified by the Parties
     and during the period of time determined by the Parties;
o    if  such   information  is  furnished  to  any  bank  or  other   financial
     organization  from which the Contractor  receives  financial funds provided
     that such a bank or other financial  organization assumes the obligation to
     consider such information as confidential and use it only for the specified
     purposes.

22.3.          In accordance with the  Legislation of the Republic,  the Parties
               will determine the time for keeping  information  confidential as
               per  all   documents,   information   and   reports   related  to
               implementation  of the Exploration  Operations in the Contractual
               Area.

                SECTION 23. ASSIGNMENT OF RIGHTS AND OBLIGATIONS

23.1.          Assignment  of the rights and  obligations  under the Contract to
               the  third  party  except  for  an  associated   company  of  the
               Contractor  may be permitted  only with a written  consent of the
               Licensing Body.

23.2.          The  expenses   connected  with  assignment  of  the  rights  and
               obligations  under the Contract  shall be born by the  Contractor
               and shall not be compensated by the State.

23.3.          For as long as the  Contractor  continues to take any part in the
               Contract,  he and the third party to which he assigned the rights
               and  obligations  shall  be  collectively   responsible  for  the
               Contract.

                           SECTION 24. APPLICABLE LAW

24.1.          Legislation  of the State will be applied  for the purpose of the
               Contract  and  other  agreements  signed  on  the  basis  of  the
               Contract.

24.2.          The Contractor assumes an obligation to fulfill the international
               obligations  of the State for  protection of  environment  in the
               Contractual Area and land sections linked with it.

                SECTION 25. PROCEDURE FOR SETTLEMENT OF DISPUTES

25.1.          The  Parties  will  take all  necessary  actions  to  settle  the
               disputes  and   differences   under  the  Contract  by  means  of
               negotiations.

25.2.          If any dispute cannot be settled by means of  negotiation  within
               60 (sixty) days from the date of its  emergence  then the Parties
               may  transfer  the  disputable  matter to the courts of the State
               authorized to consider such disputes.

                    GUARANTEES OF STABILITY OF THE CONTRACT

26.1.          Terms  and  conditions  of the  Contract  will  remain  the  same
               throughout the effective term of the Contract.

26.2.          Alterations  and  amendments  unfavorable  for the Contractor and
               adopted after  conclusion of the Contract shall not be applied to
               the Contract.

26.3.          In the case of such alterations and amendments specified in 27.2.
               the Parties  will be guided by  Paragraph  15.11.  of the present
               Contract.

                                      118
<PAGE>

                   TERMINATION AND SUSPENSION OF THE CONTRACT

27.1.          The Competent  Body shall suspend the Contract in a binding order
               if:

o    The License is suspended;
o    There is a  direct  threat  to life or  health  of the  people  working  or
     residing in a zone influenced by the operations under the Contract;

27.2.          The  Competent  Body has the right to suspend the Contract in the
               following cases:

o    the  Contractor  executes  the  operations  not provided for in the Working
     Program;
o    in the process of his activities,  the Contractor  violates the legislation
     of the State  pertaining  to protection  of subsoil,  environment  and safe
     operation;
o    in the process of his activities,  the Contractor violates the procedure of
     payment of taxes and other compulsory payments specified in the Contract;
o    the Contractor is declared  bankrupt in accordance  with the legislation of
     the State;
o    the above-mentioned list may be added as mutually agreed by the Parties.

27.3.          In case of suspension of the Contract, the Competent Body gives a
               written  notification  to the  Contractor  on the reasons of such
               suspension   and   determines   a   reasonable   term  for  their
               elimination.

27.4.          The Contract will be renewed after the notice of  elimination  of
               the reasons for suspension of the Contract.

27.5.          The Contract may be early terminated only in the following cases:

o    when the  Contractor  refuses to  eliminate  the  reasons  responsible  for
     suspension of the Contract or fails to eliminate them by the date specified
     by the Competent Body;
o    in the case of early termination of the License;
o    when the Contract is declared invalid in accordance with the Legislation on
     Subsoil;
o    if any fact of  violation  of the  Legislation  of the State in signing and
     registration of the Contract is established in legal form;
o    if any fact of  essential  departure  of the  terms and  conditions  of the
     Contract from the  provisions of the License or  competitive  conditions on
     the basis of which the License was granted to the Contractor;
o    if the Contractor assigns all or a part of his rights under the Contract to
     the third party in defiance of Section 24 of the Contract;
o    if any fact of intended  furnishing of false  information on implementation
     of  Exploration  in the  Contractual  Area to the  Competent  Body or other
     official body by the Contractor is established in legal form;
o    if the  Contractor  effects  repeatedly  the  actions  responsible  for the
     previous suspension of the Contract;
o    if the Contractor  discontinues  his operations under Working Program for a
     term of more than 90 days except for the events caused by the circumstances
     of force-majeur;
o    if the provision for  confidentiality  of information under the Contract is
     violated.

27.6.          The Contract may be  terminated  due to the reasons  specified in
               27.5.  within  30 days  after  the  date of  receipt  of  written
               notification  of  early  termination  of the  Contract  from  the
               Competent Body.

27.7.          The Parties shall not be exempted from their current  liabilities
               under  the  Contract  which  remain  unfulfilled  by the time the
               notification  of  termination  of the Contract is received by the
               Contractor.

                                      119
<PAGE>

                      SECTION 28. LANGUAGE OF THE CONTRACT

28.1.          The text of the Contract,  appendices and supplemented  documents
               are made up in Kazakh and Russian and both copies are identical

28.2.          If any  differences  or disputes arise between Kazakh and Russian
               texts then the Russian text will be given a preference.

28.3.          The  Parties  agree that  Russian  will be used as a language  of
               communication.  From  the  effective  date of the  Contract,  all
               technical documentation and information on Exploration Operations
               will be made up in Russian.

28.4.          Documentation   and  information   pertaining  to  administrative
               activities will be made up in Russian or Kazakh language.

                        SECTION 29. ADDITIONAL PROVISIONS

29.1.          All  notifications and document required as per execution of this
               Contract  will be  considered  as duly  submitted  or received by
               either Party only if they are actually submitted or received.

29.2.          All  notifications  and documents shall be handed over personally
               or  transmitted  by mail,  registered  air  mail,  fax,  telex or
               telegraph to the following addresses:

Address of the Competent Body           Address of the Contractor

Astana, Mira Str., 10                   480100 Republic of Kazakhstan,
Tel.:118 161, 118 152                   Atyrau, Lenina Str., 4.
Fax:32-12-70                            tel., fax: 63-66-44
Agency                                  "Kaspi Neft'" Company,
Of the Republic of Kazakhstan           President
On Investments,
Chairman

        D.O.Kuanyshev                               K.M.Shanenov

29.3.          If the address under the Contract changes then the Party involved
               will give a notice thereof to the other Party.

29.4.          All  appendices  to the Contract  shall be considered as integral
               parts of the  Contract.  With any  differences  or  discrepancies
               between the provisions of the appendices and the Contract itself,
               the latter will be given a preference.

29.5.          Any amendments or additions to the Contract not conflicting  with
               the  provisions  of the  License  will be drawn  up upon  written
               consent of the  Parties.  Such an  agreement  will be an integral
               part of the Contract.

The present Contract is concluded by the duly authorized  representatives of the
Parties as of March, 7, 2000, Republic of Kazakhstan.

                                      120
<PAGE>

Agency of the Republic of Kazakhstan            Contractor
On Investments

By: /S/ D.O.Kuanyshev                    By: /S/ K.M.Shanenov
signature                                signature

Agency                                   "Kaspi Neft'" Company,
of the Republic of Kazakhstan                  President
on Investments,
Chairman

         D.O.Kuanyshev                          K.M.Shanenov

                                      121Exhibit 10.3

                                AGREEMENT FOR THE
                           PURCHASE AND SALE OF SHARES

     AGREEMENT  made this 24th day of March 2000  between AIL Alpha  Corporation
Ltd., a company  established  under the laws of the Isle of Man,  with its legal
address at Prospect Chambers,  Prospect Hill, Douglas,  Isle of Man (hereinafter
"Alpha"),  represented  by Murat  Beisenbekovich  Safinov,  acting  pursuant  to
authority  granted in accordance with a power of attorney Letter No.  _____dated
________,  Transmeridian  Exploration Inc., a company established under the laws
of the British Virgin Islands with its principal  offices  located at 85 Chester
Square,  London,  England  (hereinafter the "Purchaser"),  represented by Nurjan
Sarsekonovich Kurmanov, acting pursuant to a Power of Attorney dated November 1,
1999; and OJSC Caspi Neft  (hereinafter  the "Caspi Neft"),  an open joint stock
company established under the laws of the Republic of Kazakhstan, represented by
Murat Beisenbekovich Safinov, acting pursuant to a power of attorney No. 2 dated
April 27, 2001.  (Alpha and Caspi Neft are  hereinafter  referred to together as
the "Sellers,"  and Purchaser and the Sellers are from time to time  hereinafter
referred to individually as a "Party" and collectively as the "Parties".)

                                    RECITALS

     WHEREAS,  AIL and Purchaser  entered into that Agreement dated November 13,
1999 (the "Original  Agreement"),  in accordance  with which AIL agreed to sell,
and Purchaser agreed to purchase,  the shares of "ZAO 'Caspi Neft A,"' a company
to be established by AlL's  wholly-owned  subsidiary,  Caspi Neft, in accordance
with Applicable Law;

     WHEREAS,   the  Original   Agreement  had  obliged  AIL,  upon  Caspi  Neft
establishing  Caspi Neft "A," to procure assignment to Caspi Neft "A" of License
AI No. 1557 dated 29 April 1999 (the "License") previously issued to Caspi Neft,
and to negotiate and assign to Caspi Neft "A" a Contract for the  exploration of
hydrocarbons of Yuzhny Alibek oil field (the  "Exploration  Contract"),  entered
into pursuant to the License,  for oil  exploration  and pilot  production  from
Yuzhny  Alibek,  an oil field  located in the  Aktyubinskaya  Oblast,  Mugodzhar
District of the Republic of Kazakhstan (the "Field");

     WHEREAS,  Alpha,  after  Caspi  Neft's  establishment  of Caspi  Neft  "A,"
procured the Exploration  Contract in the name of Caspi Neft "A" as successor to
Caspi Neft rather than as Caspi Neft's assignee,  and did not procure assignment
of the License to Caspi Neft "A;"

     WHEREAS,  Purchaser,  seeking-  to  effectuate  the  terms of the  Original
Agreement,  requested,  and Alpha now  reportedly  has caused the  amendment and
registration by the Competent Authority of the Exploration Contract to designate
Caspi Neft as the contractor  under the Exploration  Contract,  so that both the
License and

                                      122
<PAGE>

Exploration  Contract are in Caspi Neft's name, as  contemplated in the Original
Agreement;

     WHEREAS,  Alpha is the lawful successor to AIL and owns one hundred percent
(100%) of the outstanding- and issued shares of Caspi Neft;

     WHEREAS, the Parties now intend to undertake the transactions  contemplated
in the Original Agreement,  and to assign both License and Exploration  Contract
to a subsidiary of Caspi Neft; and

     WHEREAS, the Parties,  although intending to effectuate the purposes of the
Original  Agreement,  also wish to amend the Original  Agreement in light of the
foregoing developments.

     NOW, THEREFORE, the Parties agree as follows:

I. Definitions

The following  capitalized  terms and expressions,  when used in this Agreement,
shall have the meanings ascribed to them as set forth below:

"Act of Transfer and  Acceptance"  shall mean an act of transfer and  acceptance
transferring the Shares to Purchaser.

"Agreement"  shall  mean this  Agreement  together  with its  Recitals,  and all
schedules and Exhibits thereto.

"AIL" shall mean Alpha  International Ltd., a company established under the laws
of the Isle of Man.

"Alpha" shall mean AIL Alpha Corporation  Ltd., a company  established under the
laws of the Isle of Man, as  described  in the  introductory  paragraph  of this
Agreement.

"Applicable  Law" shall mean the laws of the Republic of  Kazakhstan,  including
without  limitation,  the Presidential  Decree No. 2828 having the force of law,
dated  January 27, 1996,  "On the Subsoil and Subsoil  Use," ("Law on Subsoil"),
Presidential  Decree No. 2350  having the force of law,  dated June 28, 1995 "On
Petroleum" ("Law on Petroleum"), Law on Introduction of Changes and Additions to
Certain  Legislative  Acts of the Republic of  Kazakhstan  Regarding  Matters of
Subsoil  Use  and  the  Conduct  of  Petroleum  Operations  in the  Republic  of
Kazakhstan,  adopted on August 11,  1999,  and all other  officially  issued and
publicly available laws, decrees,  decisions,  executive orders, regulations and
instructions  as  such  items  may  hereafter  be  supplemented  or  amended  by
officially  issued and  publicly  available  laws,  decrees,  executive  orders,
regulations  and  instructions  contemplating  rights of the  Parties to conduct
negotiations in order to change  conditions of this Agreement for such extent as
those laws, decrees,

                                      123
<PAGE>

executive  orders,  regulations and instructions may affect this Agreement,  and
such changes have to be completed before Closing date.

"Assignment  Agreement"  shall mean an agreement  providing for assignment  from
Caspi Neft to the Subsidiary of all rights, interests, and authorities under the
License and Exploration Contract.

"Banking Day" shall mean a day when the banks are open for business in New York,
London, and Almaty.

"Breach" means a breach of a representation,  warranty, covenant, obligation, or
other provision of this Agreement or any instrument  delivered  pursuant to this
Agreement  will be  deemed  to have  occurred  if  there  is or has been (a) any
inaccuracy  in or breach of, or any  failure to  perform  or comply  with,  such
representation,  warranty, covenant,  obligation, or other provision, or (b) any
claim  (by any  Person)  or  other  occurrence  or  circumstance  that is or was
inconsistent with such representation,  warranty, covenant, obligation, or other
provision,  and the term "Breach" means any such  inaccuracy,  breach,  failure,
claim, occurrence, or circumstance.

"Caspi Neft" shall mean Open Joint Stock Company Caspi Neft, an open Joint stock
company established pursuant to Applicable Law.

"Caspi  Neft 'A"' shall mean  Limited  Liability  Partnership  Caspi Neft "A," a
limited liability partnership established pursuant to Applicable Law

"Caspi Neft Shares" shall mean one hundred  percent  (100%) all common and other
shares of Caspi Neft which are issued and outstanding.

"Closing" shall have the meaning, ascribed to that term in Section 11 (F).

"Closing Date" shall have the meaning ascribed to that term in Section 11 (F).

"Competent  Authority"  shall mean the Agency of the Republic of  Kazakhstan  on
Investments.

"E&P License"  shall mean a license issued for  exploration,  production or both
pursuant to the Law on Petroleum and Law on Subsurface.

"Exhibits" shall mean the exhibits attached hereto and which are herewith made a
part of this Agreement.

"Exploration  Contract"  shall  have the  meaning  ascribed  to that term in the
second Recital.

"Field" shall have the meaning ascribed to that term in the second Recital.

                                      124
<PAGE>

"Final  Installment" shall mean Three Million Three Hundred Eighty Five Thousand
Eight Hundred Forty Two U.S. Dollars (US$3,385,842).

"First  Installment"  shall  mean the funds paid by  Purchaser  to Alpha and the
State pursuant to the Original Agreement, totaling One Hundred Fourteen Thousand
One Hundred Fifty Eight U.S. Dollars, (US$11,158).

"Governmental   Authorities"  shall  mean  any  governmental  agency,  ministry,
committee and department,  whether at a national,  regional or local level, with
any  jurisdiction  with respect to the Parties,  the License,  the Field, or the
Exploration  Contract,  as well as the Government the Government of the Republic
of Kazakhstan.

"Indemnitees" shall have the meaning ascribed to that term in Section III (A).

"Indemnified  Parties"  shall have the meaning  ascribed to that term in Section
III (A).

"Indemnity  Termination  Date" shall have the  meaning  ascribed to that term in
Section III (C).

"Liabilities" shall have the meaning ascribed to that term in Section III (A).

"License" shall have the meaning ascribed to that term in the second Recital.

"Option  A2reement"  shall have the meaning  ascribed to that term in Section VI
(A) and which is  attached  hereto as Exhibit 3),  obligating  Alpha to sell the
Caspi Neft Shares to the Purchaser in lieu of selling the Shares.

"Original  Agreement"  shall have the meaning ascribed to that term in the first
Recital.

"Properties"  shall  mean  all  property,   moveable  and  immoveable,  and  all
contractual and other rights owned by the Subsidiary,  including  rights arising
due to the License and Exploration Contract.

"Purchase Price" shall mean Four Million U.S. Dollars (USS4.000.000), consisting
of the First Installment, Second Installment, and the Final Installment.

"Purchaser" shall mean  Transmeridian  Exploration  Inc., a company  established
under the laws of the British Virgin Islands,  as described in the  introductory
paragraph of this Agreement.

"Recitals" shall mean the statements made above in this Agreement so identified,
each of which is preceded with "Whereas."

"Schedules"  shall mean the  schedules  attached to and herewith  made a part of
this Agreement.

                                      125
<PAGE>

"Second  Installment" shall have the meaning ascribed to that term in Section II
(A).

"Sellers" shall mean Alpha and Caspi Neft together.

"Shares"  shall mean one hundred  percent  (100%) of all common and other shares
issued and outstanding of the Subsidiary.

"State" shall mean the Republic of Kazakhstan.

"Subsidiary" shall have the meaning ascribed to that term in Section II (B).

"Subsurface  Use Contract"  shall mean a contract  between a contractor  and the
State pursuant to the Law on Subsurface, including the Exploration Contract.

"Warranty  Certificates"  shall mean any and each of the  certificates  attached
hereto as Exhibits 1 and 2.

II. Registration Of Agreement, Purchase Of Shares, And Payment Of Purchase Price

     A.   Purchaser,  within five (5)  Banking  Days after  receiving  (1) proof
          satisfactory  to  Purchaser  that the  Exploration  Contract  has been
          properly  registered by the  Competent  Authority in the name of Caspi
          Neft in accordance with Applicable Law such that the enforceability of
          the Exploration  Contract and validity of the License are not impaired
          under Applicable Law, and (2) an executed Warranty  Certificate in the
          form attached hereto as Exhibit 1, Purchaser shall pay to Sellers Five
          Hundred Thousand U.S. Dollars (US$500,000),  including Ninety Thousand
          U.S.  Dollars  (US$90,000)  which  Purchaser shall pay to the State on
          behalf  of  Caspi  Neft  in  partial   satisfaction  of  Caspi  Neft's
          obligation  to pay One  Hundred  Thousand  U.S.  Dollars  (US$100,000)
          pursuant to Article  15.2.4 of the  Exploration  Contract to the State
          (the "Second Installment").

     B.   Alpha,  no later  than  thirty  (30) days after  receiving  the Second
          Installment, will cause Caspi Neft to establish, and Caspi Neft hereby
          agrees  to  establish  pursuant  to  Applicable  Law,  a  wholly-owned
          subsidiary   in  the  form  of  an  open  joint  stock   company  (the
          "Subsidiary").  As soon as practicable after State registration of the
          Subsidiary,  Caspi  Neft  shall  under-take  in  accordance  with  the
          requirements  of Applicable Law State  registration of the emission of
          the Subsidiary's shares (the "Shares").

     C.   Caspi  Neft,  as  soon  as  practicable  after  establishment  of  the
          Subsidiary,  but in no event  later than  ninety  (90) days after such
          establishment,  shall assign the License and  Exploration  Contract to
          the  Subsidiary  pursuant  to an  Assignment  Agreement  in  form  and
          substance  attached  hereto as Exhibit __, and shall give any notices,
          obtain any  authorizations,  and comply with any requirements that are
          necessary or

                                      126
<PAGE>

          advisable under  Applicable Law and under the Exploration  Contract to
          lawfully effect such assignment.

     D.   Caspi Neft, upon completion  assignment of the License and Exploration
          Contract  pursuant to Section II(C) shall deliver to Purchaser (1) the
          original,   executed   Assignment   Agreement;   and  (2)  a  Warranty
          Certificate in the form attached hereto as Exhibit 2 executed by Caspi
          Neft and Alpha.  Purchaser,  upon receiving delivery of the foregoing,
          and subject to the Sellers  fulfilling  each of  conditions  stated in
          Section II (C), Section II (D), Section II(E), and Section II(H) shall
          thereupon  be  obliged  to pay the Final  Installment  as  hereinafter
          provided.

     E.   In  the  event   Purchaser,   upon  receiving  the   information   and
          confirmations  provided  to  it  pursuant  to  Section  II(D)  is  not
          satisfied  that the  assignment  has been effected in compliance  with
          Applicable  Law and that the License and  Exploration  Contract are in
          compliance with  Applicable Law,  Purchaser will specify in writing to
          Caspi Neft and Alpha those deficiencies  identified by Purchaser,  and
          Caspi Neft and Alpha shall remedy any such deficiencies  within twenty
          (20) days after receiving Purchaser's notice thereof.

     F.   Purchaser's payment of the Final Installment and Caspi Neft's delivery
          of the Shares and transfer to  Purchaser  (the  "Closing")  shall take
          place on that date (the  "Closing  Date") which is the earlier of: (1)
          five (5) days after the  conditions  stated in Section II(D) have been
          satisfied;  or (2) ninety (90) days after the date hereof, unless such
          date is extended by mutual agreement of the Parties.

     G.   Subject to the terms and conditions of this Agreement, at the Closing,
          Sellers will sell and transfer the Shares to Purchaser,  and Purchaser
          will  consummate  the  purchase of 'the Shares  from  Sellers.  At the
          Closing:

          (1)  Sellers shall be obliged as follows:

               a)   Caspi Neft shall  effect  registration  of the Shares in the
                    name  of  Purchaser  with  the  Subsidiary's  registrar  (or
                    depository,  as the case may be) and deliver to Purchaser an
                    extract from the Subsidiary's share register confirming such
                    registration;

               b)   Caspi  Neft  shall   deliver  to   Purchaser   any  and  all
                    certificates evidencing the Shares together with an executed
                    Act of Transfer and Acceptance.

               c)   Caspi Neft shall deliver the certificate  attached hereto as
                    Exhibit 4.

          (2)  Purchaser  shall  be  obliged  to  effect  payment  of the  Final
               Installment to Alpha and Caspi Neft as follows:

                                      127
<PAGE>

               a)   Purchaser shall pay One Hundred Fifty Thousand U.S.  Dollars
                    (US$150,000) to Caspi Neft.

               b)   Purchaser  will pay Three  Million  Two  Hundred  Thirty Six
                    Thousand Eight Hundred Forty Two U.S. Dollars (US$3,235,842)
                    to Alpha.

               c)   Purchaser shall instruct that the One Hundred  Thousand U.S.
                    Dollars  (US$100,000) held in trust pursuant to the Original
                    Agreement be released to the Sellers.

     H.   Notwithstanding, the foregoing, the obligations of Purchaser hereunder
          to purchase the Shares and to pay the  Purchase  Price  therefore  are
          subject to the satisfaction of each of the

          (1)  All of the representations and warranties of Sellers contained in
               each Warranty  Certificate shall be true and correct at and as of
               the Closing Date with the same force and effect as if restated in
               their entirety on and as of the Closing Date.

          (2)  Sellers  shall have  performed  and complied in all respects with
               the agreements  and  conditions  required by this Agreement to be
               performed or complied with prior to or at the Closing, including,
               without  limitation,  the delivery of all  documents  referred to
               elsewhere  in this  Agreement  as being  required to be delivered
               prior to or at the Closing.

          (3)  All  authorizations,  approvals or permits of, or  registrations,
               qualifications.  Declarations  or filings  with the  Republic  of
               Kazakhstan  or  regulatory   authorities  thereof  (collectively,
               Governmental  Authorities")  that are required in connection with
               the lawful sale and transfer of the Shares or  assignment  of the
               Exploration  Contract or License have been duly obtained and made
               in form and substance  reasonably  satisfactory  to Purchaser and
               shall be effective at and as of the Closing Date.

          (4)  From the date of this Agreement to the Closing Date, the business
               of  Caspi  Neft  and  each  of its  subsidiaries  (including  the
               Subsidiary)  shall have been  conducted in the usual and ordinary
               course; there shall have been no material change in the nature or
               character  of the  business,  capital or debt  structure or legal
               form of  Caspi  Neft or any of its  subsidiaries,  including  the
               Subsidiary, including but not limited to, any sale, conveyance of
               the Field.

          (5)  Neither  Caspi Neft nor any of its  subsidiaries,  including  the
               Subsidiary,  shall have suffered any material adverse change with
               respect  to  its  Properties,   business   operation,   financial
               condition or prospects.

                                      128
<PAGE>

          (6)  Purchaser   shall  have  received  from  Sellers  the  following,
               documents in form and substance satisfactory to Purchaser and its
               counsel:

               a)   Stock  certificates  representing the Shares,  with any such
                    stock  certificates  duly  endorsed  in blank  or with  duly
                    executed stock powers attached in proper form for transfer.

               b)   A  certificate  of Caspi Neft  substantially  in the form of
                    Exhibit 4 hereto,  dated the Closing Date and duly  executed
                    by Caspi Neft  certifying  that Caspi Neft is the record and
                    sole  beneficial  owners of the Shares and has  complete and
                    unrestricted  power to endorse and deliver the  certificates
                    representing the Shares to Purchaser  without the consent of
                    any third party.

               c)   Letters  of  resignation  of each  member  of the  Board  of
                    Directors, and/or members of any other administrative and/or
                    executive  bodies  of  the  Subsidiary  effective  as of the
                    Closing Date.

               d)   A  certificate  from  the  appropriate  governmental  agency
                    confirmation  the  good  standing  of  Caspi  Neft  and  the
                    Subsidiary.

               e)   The corporate minute book and stock transfer records for the
                    Subsidiary together with copies of all constituent documents
                    of the Subsidiary.

               f)   Certificate  dated  as of  the  Closing  Date,  executed  by
                    Sellers,  certifying that all of the conditions specified in
                    this Agreement have been fulfilled.

               g)   All  required  consents  from  Governmental  Authorities  in
                    connection  with  the  transactions   contemplated  by  this
                    Agreement.

          (7)  All other  formalities or acts to be accomplished or performed by
               the  Subsidiary   and/or  Caspi  Neft  In  connection   with  the
               transactions  contemplated hereby shall have been accomplished or
               performed,  and all documents and  instruments  incident  thereto
               shall  have  been  made  available  and be in form and  substance
               reasonably satisfactory to Purchaser and its counsel.

          (8)  There  shall  be no  action  or  proceeding  actual,  pending  or
               threatened,  by any  Governmental  Authority  or  private  person
               before any court or  administrative  body to restrain,  enjoin or
               otherwise   prevent   the   consummation   of  the   transactions
               contemplated  hereby or to recover damages or obtain other relief
               as a result thereof.

                                      129
<PAGE>

          (9)  All  amounts  owed  to the  Subsidiary  by  any of its  officers,
               directors,  employees or shareholders  shall have been discharged
               in full on or before the Closing Date.

          (10) All  guarantees or pledges made by the Subsidiary for the benefit
               of any of the Sellers or their  respective  affiliates shall have
               been discharged in full on or before the Closing Date.

          (11) Purchaser  shall have  completed  a due  diligence  review of the
               Subsidiary  pursuant to Section IV (B) of this  Agreement and the
               conclusions  and results of such due  diligence  review  shall be
               satisfactory to Purchaser in its sole opinion.

          (12) The Shares to be sold by Caspi Neft to Purchaser pursuant to this
               Agreement  shall,  in the  aggregate  on a fully  diluted  basis,
               constitute at least 100% of the issued and outstanding shares.

          (13) As of the  Closing  Date,  there shall be no  encumbrances  on or
               pledges, mortgages, or liens on any of the Properties.

                              III. Indemnification

     A.   Agreement to  Indemnify.  Sellers  agree,  jointly and  severally,  to
          indemnify  Purchaser  and  Purchaser's  investors   (collectively  the
          "Indemnified  Parties")  and  their  respective  officers,  directors,
          partners,  shareholders,  employees,  affiliates,  agents,  attorneys,
          lessees, successors and assigns, their officers, directors,  partners,
          shareholders,   employees,  affiliates,  agents,  attorneys,  lessees,
          successors  and assigns  (collectively,  the  "Indemnitees")  from and
          against all liabilities (including sums paid in settlement of claims),
          losses (including lost profits) costs,  obligations,  demands,  suits,
          liens, damages (including,  consequential and punitive damages), fines
          (including  any sums ordered to be paid or expended by  Indemnities by
          any  Governmental  Authority  as a fine,  penalty or  damages  for any
          violation),  penalties, forfeitures, actions, defenses, administrative
          proceedings (including informal proceedings),  judgments, settlements,
          orders,   equitable   relief,   expenses   (including   experts'   and
          consultants' fees and costs),  attorneys' fees and expenses (including
          any fees and  expenses  incurred in  enforcing  or  interpreting  this
          Agreement),  and claims  (including,  third party  claims for personal
          injury  or real or  personal  property  damage)  of any kind or nature
          whatsoever  (whether  foreseeable  or  unforeseeable,   contingent  or
          non-contingent,   or  arising  out  of   contracts   entered  into  or
          indemnifications  provided by Indemnitees or otherwise) (collectively,
          the  "Liabilities")  and  to  protect,  save  and  keep  harmless  the
          Indemnified Parties and Indemnitees from, and to assume liability for,
          payment of all  Liabilities  that may be imposed on or Incurred by the
          Indemnified   Parties  or  Indemnitees  as  a  consequence  of  or  in
          connection  with  (a) any  misrepresentation  by any  Seller,  (b) any
          breach by any  Seller of a warranty  contained  in this  Agreement  or
          Warranty

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<PAGE>

          Certificate, or (c) any failure by any Seller to perform any agreement
          or covenant contained herein.  Notwithstanding the foregoing,  Sellers
          shall only be  required  to  indemnify  the  Indemnified  Parties  and
          Indemnitees for Liabilities  pursuant to this Article IV to the extent
          such  Liabilities are not reimbursed under any insurance  policy.  The
          foregoing  indemnity  shall  include all  attorneys'  fees incurred in
          connection with the enforcement of this indemnity.

     B.   Notice of Claims and Potential  Claims.  Any claim for indemnity under
          this  Agreement  shall  be  made  by  written  notice  to the  Sellers
          specifying  in  reasonable  detail the basis of the party  against any
          Indemnified  Party,  as  applicable,  which might give rise to a claim
          against  Sellers  stating  the nature and basis of such claim and,  if
          ascertainable the amount thereof.  Purchaser's  failure to give timely
          notice or to provide  copies of documents or to furnish  relevant data
          in  connection  with any third  party  claim  shall not  constitute  a
          defense (in part or in whole) to any claim for  indemnification by the
          Indemnified  Party or  Indemnitee,  except and only to the extent that
          such failure shall result in any  prejudice to Sellers.  In connection
          with any such third party claim,  Sellers  may, at their  election and
          expense,  have the right to  participate  in the defense of such third
          party  claim.  If Sellers  shall have  acknowledged  in writing  their
          obligation  to  indemnify  in respect of any third  party  claim which
          might  give rise to a claim  for  indemnity  under  this  Article  IV,
          Purchaser  agrees not to settle  such third  party  claim  without the
          consent of Sellers,  which  shall not be  unreasonably  withheld,  and
          Purchaser  further  agrees  upon the written  request of  Sellers,  to
          assign all rights and  liabilities  with  respect to such third  party
          claim to Sellers  and to  cooperate  in the  prosecution  and  defense
          thereof,  including without  limitation  providing access to the books
          and records of the Subsidiary; provided, however, Sellers agree not to
          settle any such third party claim  without the consent of Purchaser if
          any relief, other than the payment of money damages,  would be granted
          by  such  settlement  that  might   materially   affect  the  business
          operations or reputation of any  Indemnitees or Indemnified  Party, as
          applicable,  or if, as a result  of the  limitations  on the  Sellers'
          liability provided herein, the Indemnitees or Indemnified  Parties, as
          applicable, might be liable to the third party for all or a portion of
          the amount of such settlement.

     C.   Termination  of Indemnity  Obligations.  The  obligation of Sellers to
          indemnify hereunder shall terminate (the "Indemnity Termination Date")
          (i) upon the  termination of the applicable  statute of limitations in
          the case of  statutory  violations  and (ii) two (2)  years  after the
          Closing Date in all other  instances  except as to matters as to which
          any   Indemnitee   or   Indemnified   Party   has  made  a  claim  for
          indemnification or given written notice of a claim for indemnification
          on or prior to such  date,  With  respect  to  matters as to which any
          Indemnitee or Indemnified  Party has made a claim for  indemnification
          or given written notice of a claim for  indemnification on or prior to
          the Indemnity  Termination  Date,  the right to  indemnification  with
          respect   thereto  shall  survive  the  expiration  of  the  Indemnity
          Termination  Date,  until  such  claim  is  finally  resolved  and any
          obligations with respect thereto are fully satisfied.

                                      131
<PAGE>

IV. Conduct Of Business Prior To Closing

     A.   Conduct of Business  Prior to Closing.  Sellers  Jointly and severally
          represent,  warrant and  covenant  that from  November 13, 1999 to the
          Closing  Date,  each of Caspi  Neft and (upon its  establishment)  the
          Subsidiary  have  carried on and shall  carry on its  business  in the
          normal and ordinary course in a manner  consistent with the conduct of
          its business in prior years and,  except as permitted by prior written
          consent of Purchaser,  Alpha shall not permit Caspi Neft or any of its
          subsidiaries in respect of its business to:

          A.   Except  in  the  ordinary  course  of  business,  modify,  amend,
               transfer,  assign,  renew, enter into or terminate any Subsurface
               Use Contract or E&P License;

          B.   Modify, amend,  transfer,  assign, renew, enter into or terminate
               the  License  or  Exploration   Contract,   except  as  expressly
               contemplated herein;

          C.   Sell, transfer or encumber any of their properties, or enter into
               any transaction or make any commitment  relating to its property,
               assets  or  business  otherwise  than in the  ordinary  course of
               business;

          D.   Issue any capital stock or partnership interests, as the case may
               be or pay any dividends or make any  distributions  in respect of
               such capital stock or partnership interests, as the case may be;

          E.   Sell or  transfer,  or agree to sell or  transfer,  any assets or
               cancel or agree to cancel  any  debts or  claims,  except in each
               case in the ordinary course of business;

          F.   Reclassify  or change the rights of any  securities of Caspi Neft
               or any of its subsidiaries; or

          G.   Amend the Charter or other constituent documents of Caspi Neft or
               any of its Subsidiaries.

     B.   Access to  Information  Prior to Closing.  Prior to the Closing  Date,
          Sellers will make available to Purchaser's  counsel,  accountants  and
          other  representatives  full access,  during normal business hours, to
          all of the  employees,  books,  contracts,  reports,  commitments  and
          records of each of Caspi Neft and its  subsidiaries for the purpose of
          performing  all  inspections  and due  diligence  deemed  necessary by
          Purchaser  and will  supply to  Purchaser  such  detailed  information
          concerning the business  affairs of Caspi Neft and its subsidiaries as
          Purchaser may reasonably  request in connection  with this  Agreement.
          The  intent  of the  provisions  of this  Section  IV (B) is to  allow
          Purchaser to investigate  any matters  concerning,  Caspi

                                      132
<PAGE>

          Neft  and its  subsidiaries  regarding  which  Purchaser  in its  sole
          discretion requires further comfort or assurance.

     C.   Notice of  Events.  Throughout  the  period  between  the date of this
          Agreement  and  the  Closing  Date,  Sellers  shall  advise  Purchaser
          promptly in writing of any and all  material  events and  developments
          concerning the assets, liabilities, results of operations or prospects
          of Caspi Neft,  its  subsidiaries,  and the  Subsidiary  or any of the
          items or matters  concerning  Caspi Neft or its  subsidiaries,  or the
          Subsidiary  covered by the  representations,  warranties and covenants
          contained in this Agreement.

     D.   No Other Negotiations.  Prior to the Closing,  neither Sellers nor any
          representative  of any of  them  shall  conduct  any  negotiations  or
          discussions  with any party regarding a possible  acquisition of Caspi
          Neft, the License, the Field, or the Exploration Contract or of all or
          a  substantial  part of the business or assets of Caspi Neft or any of
          its subsidiaries.

V. Payments

All payments  hereunder shall be made by wire transfer in immediately  available
funds to a bank account designated in writing by the respective recipient, Caspi
Nefl, Alpha or Purchaser, as the case may be,

VI. Purchaser's Right To Purchase Shares Of Caspi Neft From AIL

     A.   Purchaser,  in the event  Caspi Neft falls to assign the Shares to the
          Subsidiary  in  compliance  with and within the time limits  stated in
          Section II (C), shall have the right,  but not the obligation,  at any
          time thereafter in consideration  for payment of the Final Installment
          to Alpha to  purchase  one  hundred  percent  (100%) of the issued and
          outstanding  common shares and other outstanding  shares of Caspi Neft
          (the "Caspi Neft Shares")  pursuant to the Option  Agreement.  For the
          avoidance of doubt, the Option Agreement shall survive any termination
          of this Agreement, whether such termination is pursuant to Article VII
          hereof, or otherwise.

     B.   Alpha, upon  presentation of the Option  Agreement,  shall execute the
          Option Agreement, and thereafter shall:

          (1)  Promptly  execute and  deliver to Caspi Neft and the  independent
               registrar and/or  depositary (as the case may be) which maintains
               the register  with respect to the Caspi Neft Shares,  a notice of
               the Option Agreement with respect to the Caspi Neft Shares. (Such
               notice shall be accompanied by a copy of the Option Agreement.)

          (2)  Register or cause to be registered, the Option Agreement by means
               of a notation  of the Option  Agreement  on the Caspi Neft Shares
               together

                                      133
<PAGE>

               with an affidavit  stating the  truthfulness  and completeness of
               the documentation.

     C.   Alpha hereby covenants to Purchaser that:

          (1)  It will make no  assignment,  pledge,  transfer  of or create any
               security interest in the Caspi Neft Shares.

          (2)  It  will,  at its own  expense  and  cost,  defend  its  title or
               interests  to the Caspi Neft Shares for the benefit of  Purchaser
               against any and all  attachments,  liens,  claims,  encumbrances,
               security  interests or other  impediments of any nature,  however
               arising,  of all  persons  whomever.  Alpha shall give the Pledge
               prompt  written  notice of any claim  relating  to the Caspi Neft
               Shares.

     D.   Purchaser  hereby  covenants  that  it  shall  use  its  best  efforts
          including,  but  not  limited  to  making  application  to  Government
          Authorities,  entering into an assignment agreement, and other actions
          reasonably  required by Sellers to transfer any other E&P Contract and
          related license to Alpha, and to retain in Caspi Neft only the License
          and Exploration Contract;  provided, however, that Purchaser shall not
          be obliged to take any  action  which  would  endanger  the  validity,
          enforceability,  or rights  pursuant  to the  License  or  Exploration
          Contract.

                                VII. Termination

     A.   This  Agreement  may, by notice given prior to or at the  Closing,  be
          terminated:

          (1)  by  either  Purchaser  or  Sellers  if a  material  Breach of any
               provision of this Agreement has been committed by the other Party
               and such Breach has not been waived;

          (2)  by Purchaser if any of the  conditions  in Section II(H) have not
               been satisfied as of the Closing Date or if  satisfaction of such
               a condition  is or becomes  impossible  (other  than  through the
               failure of  Purchaser to comply with its  obligations  under this
               Agreement)  and  Purchaser  has not waived such  condition  on or
               before the Closing Date;

          (3)  by Mutual consent of Purchaser and Sellers; or

          (4)  by either  Purchaser  or Sellers if the Closing has not  occurred
               (other than through the failure of any Party seeking to terminate
               this  Agreement to comply fully with its  obligations  under this
               Agreement) on or before ninety (90) days from the date hereof, or
               such later date as the Parties may agree upon.

     B.   Each  Party's  right  of  termination  under  this  Article  VII is in
          addition  to any other  rights it may have  under  this  Agreement  or
          otherwise,  and the exercise of a right of termination  will not be an
          election of remedies.  In the event this  Agreement is

                                      134
<PAGE>

          terminated  by a Party  because of the Breach of the  Agreement by the
          other  Party  (or  because  one  or  more  of  the  conditions  to the
          terminating  Party's obligations under this Agreement is not satisfied
          as  a  result  of  the  other  Party's  failure  to  comply  with  its
          obligations  under this Agreement),  the terminating  Party's right to
          pursue all legal remedies will survive such termination unimpaired.

     C.   If this  Agreement  is  terminated  pursuant  to Section  VII(A),  all
          further   obligations   of  the  Parties  under  this  Agreement  will
          terminate, except that:

          (1)  If  Purchaser   terminated  the  Agreement  pursuant  to  Section
               VII(A)(1)  or (2),  Sellers  shall  be  obliged  to  procure  the
               immediate  repayment to Purchaser  of the First  Installment  and
               Second  Installment,  and shall pay to Purchaser  additional  Two
               Hundred Thousand U.S. Dollars (US$200,000) in damages.

          (2)  If Sellers  terminated this Agreement  pursuant to Section VII(A)
               (1),  Sellers shall return the Second  Installment  to Purchaser,
               and Purchaser shall procure  release of the First  Installment to
               Sellers,  thereby  effecting  the  payment  of  the  One  Hundred
               Thousand U.S. Dollars (US$ 100,000) to Sellers.

                               VIII. Miscellaneous

     A.   Survival of Representation  and Warranties.  Notwithstanding  anything
          contained in this Agreement to the contrary,  all  representations and
          warranties  made by Sellers  and  Purchaser  under this  Agreement  in
          connection  with  the  transactions  contemplated  herein  or  in  any
          schedule,  certificate,  list or other instrument  delivered  pursuant
          hereto  shall  survive the Closing and any  investigation  made at any
          time with respect thereto.

     B.   No Waiver of  Rights.  No failure or delay on the part of any party in
          the exercise of any power, right or privilege  hereunder shall operate
          as a waiver  thereof,  and no single or partial  exercise  of any such
          power,  right or privilege  shall preclude  other or further  exercise
          thereof  or of any other  right,  power or  privilege.  All rights and
          remedies  existing under this  Agreement are cumulative  with, and not
          exclusive of, any rights or remedies  otherwise  available.  No waiver
          shall be  binding  unless in  writing,  and  signed by the party to be
          charged or a qualified officer thereof.

     C.   Notice.  All notices hereunder shall be in writing and shall be either
          personally  delivered,  transmitted by postage  prepaid  registered or
          certified mail,  airmail if international,  return receipt  requested,
          transmitted by telex or telecopier,  or transmitted by courier service
          to the  Parties  hereto  at  their  respective  addresses.  Except  as
          otherwise specified herein, all notices and other communications shall
          be deemed to have been duly given on receipt or, if  undeliverable  or
          refused at the address  provided  herein,  upon attempted  delivery or
          refusal.  For Purposes  hereof,

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<PAGE>

          the addresses of the Parties hereto (until notice of a chancre thereof
          is given in the manner  provided in this Section VIII (C)) shall be as
          set forth on Exhibit 6 hereto.

     D.   Governing Law.  Notwithstanding the Parties compliance with Applicable
          Law  in  the  performance  their  respective  duties  hereunder,  this
          Agreement and the rights and  obligations  of the Parties hereto shall
          be governed by and construed in  accordance  with the laws of the laws
          of England, without regard to the conflict of law provisions thereof.

     E.   Counterpart Originals. This Agreement has been executed simultaneously
          in four (4)  Counterparts,  two (2) in Russian and two (2) in English,
          each of which shall be deemed an original,  but all of which  together
          shall constitute one and the same instrument.  This Agreement,  having
          been executed in English and Russian  versions,  both  versions  shall
          have equal force.

     F.   Dispute  Resolution.  Any  dispute  arising  in  connection  with this
          Agreement  or in  connection  with  the  Original  Agreement  shall be
          resolved  pursuant  to  Section  8.1 of the  Original  Agreement.  For
          avoidance  of doubt,  Alpha  shall be  entitled  to  appoint  only one
          arbitrator on behalf of the Sellers and AIL pursuant to Section 8.1 of
          the Original Agreement.

     G.   Assignment:  Successors  This Agreement  shall inure to the benefit of
          and be binding upon the heirs,  successors and assigns of all Parties.
          Purchaser  may  assign  or  transfer  to an  Affiliate  of  Purchaser,
          including without limitation,  any or all of its interests,  rights or
          obligations under this Agreement,  and any assignees or transferees of
          Purchaser hereunder shall be fully vested with such interests,  rights
          or  obligations  Sellers may not assign or transfer  any of his or her
          interests,  rights or  obligations  under this  Agreement  without the
          prior written consent of Purchaser.

     H.   Joint and Several, Obligations.  Unless otherwise provided for in this
          Agreement, all representations, warranties, undertakings and covenants
          of Sellers are made jointly and severally by each of them.

     I.   Further  Assurances.  The Parties hereto agree that, from time to time
          hereafter,  and upon request,  each of them will execute,  acknowledge
          and deliver such other documents and instruments as may be required to
          carry out more effectively the terms and conditions of this Agreement.
          In  particular,  due to the very  limited  time in which the  Parties'
          counsel have had to prepare this  Agreement,  the Exhibits (other than
          Exhibit  1) and  Schedules  hereto  have  not  been  completed.  These
          Exhibits and  Schedules  will be prepared and presented to the Parties
          within  seven  (7) days  after  the date  hereof,  and  shall  each be
          initialed  confirming  that  they are in form and  substance  mutually
          satisfactory to the Parties.

     J.   Entire   Agreement:   Modifications;   Severability   This  Agreement,
          including  the  Exhibits  and  Schedules,   together  with  the  other
          agreements  referred  to  herein,

                                      136
<PAGE>

          constitutes the entire agreement between the Parties pertaining to the
          subject  matter hereof and  supersedes  all prior and  contemporaneous
          agreements,  representations and  understandings,  written or oral, of
          the Parties. This Agreement may not be modified or amended except by a
          writing  signed  by each of the  Parties  hereto  (and by a  qualified
          officer if such party is a legal entity).  The invalidity,  illegality
          or  unenforceability  for any reason of any one or more  provisions of
          this   Agreement   shall  not  affect  the   validity,   legality   or
          enforceability of the remainder of this Agreement.

     K.   Confidentiality.  The existence and subject  matter of this  Agreement
          and the other agreements entered into pursuant hereto are confidential
          and shall not be  disclosed  to or  discussed  with any third  parties
          (except  professional  advisers)  without the prior written consent of
          the Parties  hereto.  This  obligation  shall survive the execution of
          this Agreement in the event the transaction contemplated herein is not
          consummated on the Closing Date.

IN WITNESS  WHEREOF,  the Parties have executed this  Amendment No.3 on the date
first above written.

For Transmeridian Exploration Inc.

By: /S/ Nurjan Sarsekenovich Kurmanov
-------------------------------------
Name: Nurjan Sarsekenovich Kurmanov
Title:  Authorized representative

For AIL Alpha Corporation Ltd.

By: /S/ Murat Beisenbekovich Safinov
-------------------------------------
Name: Murat Beisenbekovich Safinov
Title:  Authorized representative

For OJSC Caspi Neft.

By: /S/ Murat Beisenbekovich Safinov
-------------------------------------
Name: Murat Beisenbekovich Safinov
Title:  Authorized representative

                                      137

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