KMG EP has implemented a diverse social programme across a number of areas, including social partnership, educational projects, sponsorship and overall support of its employees and their families. KMG EP also places a strong emphasis on its responsibility towards the environment in the regions of its operations and beyond.

The Company spent total of US$30 million on various projects in 2008 and it continues to prioritize the promotion of the image of Kazakhstan and its cultural traditions abroad.

The Company operates social policies in several areas – social partnership, sponsorship, work relations, and a programme of support for Company employees and their families.

The social partnership programme enables the Company to realise its obligations in accordance with the Subsoil Use Contracts and contributes to the development of the infrastructure of the regions where KMG EP operates. As part of this Programme the Company works with local authorities and provides financial support to a number of social projects – construction and refurbishment of schools, roads, hospitals, cultural and sports centres. KMG EP also supports a number of social and public organisations of Kazakhstan.

Sponsorship is an integral part of the Company’s social programme. KMG EP provides financial aid to low income families, invalids, orphans, pensioners, artists, and athletes and participates in various socially important events organised by NC KMG.

In response to government policy regulating relations between employers and trade unions, the Company made an important step forward in the area of work relations. In December 2007 a Collective Agreement was signed that ensured a high level of social protection for the Company’s employees.

KMG EP is a regular sponsor of such annual events as the KIOGE conference and the Eurasian Energy Forum.

Occupational health and safety

Occupational health and safety is one of the main priorities for management at KMG EP. The implemented measures are aimed at improving working conditions, accident prevention, readiness to localise and eliminate the consequences of accidents and guarantee indemnity of damage inflicted upon third parties and the environment. All measures are supported financially and are performed in full, year after year.

According to the Republic of Kazakhstan’s Labour Code and the Industrial Safety Law, managers and executives of industrial organisations who are responsible for the provision of occupational health and safety have to undergo training and test their knowledge at advanced training courses once every three years.

The permanent commission carries out thorough inspections and analyses of occupational safety and environmental conditions. It also checks that protective and other equipment, and the whole work environment, conforms to the rules, safety requirements and international standards. Certification of production facilities with regard to working conditions in UMG and EMG were also carried out in 2009 by independent organisations. Safety declarations of production facilities at UMG and EMG were reviewed and positive expert reports by the state monitoring and control bodies were obtained. The risk management system in the area of industrial and fire safety is well-developed in the projects, considerably reducing the risk of accident and emergencies at production sites and giving an objective estimate of hazards which likewise plays its part in risk reduction.

The production branches of KMG EP, like other enterprises, take an active part in nation-wide official emergency training exercises. The goal of such exercises is to prepare for and undertake rescue and other emergency work when dealing with natural and man-made disasters.

To prevent and reduce occupational diseases, the staff of KMG EP head office and branches has to pass an annual medical check-up while drivers and other personnel must pass a medical check-up before their shifts.

The production sites of oil companies are inherently hazardous, so KMG EP is actively working to reduce risks that pose a threat to health and safety. Analysis of the last few years clearly shows stabilisation of the level of industrial injuries. Nevertheless, accidents in the workplace are still a real issue. 2009 has seen two hazard-related incidents in the Company’s production facilities.

The injury rate and frequency of accidents was reduced by around 70 per cent as compared to the last year. The accident frequency rate was reduced nearly 80 per cent since 2004.

Environmental protection

Taking into account that the natural environment and biodiversity are assets for all future generations to enjoy, the Company implements a balanced policy of sustainable development of the economic, social and ecological aspects of its operations.

KMG EP implements the most effective and ecologically sound projects in order to restore and stabilise the quality of the environment.

The Company allocates considerable funds annually for implementation of these projects, rising from KZT7.9bn (US$53.6m) in 2009 to a planned KZT10bn (US$66.7m) in 2010.

The bulk of this investment is allocated to eliminating past pollution. Lately the Company has intensively implemented the technology of zeolite biological remediation of polluted land. Considerable areas of previously polluted land are returned to use every year. In 2009 alone, 77 hectares were restored. Moreover, the Company also uses traditional technical means of regenerating polluted lands. The total area of regenerated lands so far is 156 hectares.

To reduce the volume of historically accumulated waste, especially the overspill oil which formed into a shallow lake at Uzen in Soviet times, the Company uses two facilities for processing soil polluted with crude oil and re-cycle it for Company use. As of today these facilities have passed the test of industrial use and have all the necessary state licences and certificates. In order to increase the capacity of waste recycling, KMG EP involves contractors with special equipment. In the past year, the Company recycled 121 thousand tonnes of waste and plans to recycle another 121 thousand tonnes in 2010.

In 2009, KZT1.3bn (US$8.8m) was allocated for removing an old oil processing and pumping facility at UMG, reducing its size from 85 to 29 hectares.

Increasing the rate of associated gas utilisation is another aspect to which the Company pays serious attention. KMG EP has constructed 64.6km of new gas pipelines and increased its own associated gas consumption by installing additional heating furnaces in Kisimbai, Akingen and B. Zholamanov fields. In this way it has reduced gas flaring by 5.6 cubic metres per year and increased utilisation of associated gas to 65%.

To implement the associated gas recovery programme, the Company invested KZT577m (US$3.9m). Work on raising gas utilisation continues.

A number of the Company’s current ecological projects are related to preventing the pollution of the Caspian Sea offshore area. For this, the shoreline is fenced off from the Company’s production infrastructure by dams to prevent oil pollution of the sea when the level of the Caspian fluctuates. Every year, after sea levels subside, the dams are repaired and reconstructed.

Lately, the Company has been using a totally new technology to protect fields from flooding. It is a multi-step metal structure with a special filler which protects the shoreline from landslides and erosion. This technology is more wave-resistant than previous methods. It is planned ito fully replace the filling dams with the new structures in future.

In order to continuously control the state of the environment, the Company has formed an onshore ecological monitoring network. This is centred on physical and chemical laboratories which trace the impact of KMG EP’s production activity on every component of the environment: air, underground waters, soil, flora and fauna.

The Company then evaluates the soundness and efficiency of the technological processes on the basis of the results obtained. Should the technological processes be broken off or disrupted, steps are promptly taken to identify the source of pollution. The operability of the monitoring network is maintained and developed year by year.

Disclaimer Site map Home Page up