The company fulfills its obligations

May 28. Kazpravda. West Kazakhstan region

By Arman Kusainov

The company fulfills its obligationsThe company “Karachaganak Petroleum Operating BV” (KPO) which develops the Karachaganak oil and gas field, announced the publication of “Sustainability Report for 2012”, which reflects the successes of the biggest in Kazakhstan investor.

This document prepared in accordance with the principles of Guide G3.0 Global Reporting Initiative and the requirements of Application Level B + contains data on the company’s activities in the field of sustainable development, as well as commitments for the future. The report is confirmed by an authoritative auditing company Ernst & Young.

Commenting on the report General Director of the KPO Damiano Ratti said:

– Advanced system of industrial and occupational safety and environmental protection, modern corporate governance, new technologies in production processes, improvement of programs in the field of personnel nationalization and increasing the share of local content are the key principles of sustainable development in the operation of the company.

In 2012, the company reached a new benchmark in its activity having produced 139.5 million barrels in oil equivalent of stabilized and non-stabilized liquid hydrocarbons, gas and fuel gas. The volume of injected gas at that to maintain reservoir pressure was 8.6 billion cubic meters, which corresponds to 49% of the total volume of gas produced.

The volume of gas flaring was only 0.13% of the total volume of extracted gas or 0.78 ton per one thousand ton of mined raw materials. The comparison of these figures with the corresponding figures of the world oil and gas companies shows the leadership of KPO in the field.

The certification body conducts annual surveillance audits of the company for its compliance with the MSC in safety management systems, occupational health and environmental protection (TB HSE), requirements of ISO 14001 and OHSAS 18001.

In its activities the “Karachaganak Petroleum Operating BV” is committed to high standards of environmental safety. Since 1997, i.e. since the signing of the Final Production Sharing Agreement, the total investments in environmental protection of the company reached 239.4 million dollars. The company fully supports the initiative of the Government of the Republic of Kazakhstan for the transition to “green economy.” Last year the figure of gas utilization at the Karachaganak was 99.87%, which is a world-class achievement.

– Supporting the development of sustainable and socially-responsible business, the company aims to achieve new goals in production for the common good of Karachaganak partners and the Republic of Kazakhstan – said Damiano Ratti.

As the largest employer in the region, the company has fulfilled its obligations to protect the health of their employees and create long-term jobs with competitive pay system. According to the report, the Kazakh employees now occupy 69% of all management positions and 95% of senior positions in lower control link and skilled professionals.

As a result of ongoing work on the replacement of foreign workers by local specialists, today the Kazakh employees account for 93% of the total staff. Overall, since the entry into force of the final PSA the company has invested more than $ 168 million in training and development of Kazakh specialists. In 2012, the share of local content in the KPO contracts for goods, works and services reached 56%, which in monetary terms is 335 million dollars.

As a result of the partnership over the years a large number of new schools and kindergartens, hospitals, social and sport facilities and hundreds kilometers of roads were built in the region. At present, the total amount of the company’s investments in social infrastructure of the West Kazakhstan region exceeded $ 270 million.

All these achievements confirm that the principles of sustainable development are successfully integrated into all areas of the KPO.