LETTER FROM
GENERAL DIRECTOR
Dear readers!
I am pleased to present to you the 14th Sustainability Report of the Karachaganak Petroleum Operating B.V. Kazakhstan Branch, covering the year 2021.
I have worked at KPO as General Director for a year now. Over this time, I can say that I feel proud to lead and be a part of such a unique and fascinating world-class project.
In 2021, despite the COVID-19 challenges, we achieved a remarkable performance in hitting production and marketing targets as well as delivering large and complex projects, such as the Turnaround and the start-up of the Karachaganak Gas Debottlenecking Project. The 4th Gas Reinjection Compressor project also achieved mechanical completion.
It is worth noting that in 2021 all projects and production and maintenance activities were carried out safely. Thanks to the HSE continuous improvement programmes KPO LTI rate improved from 0.06 in 2020 (two injuries) to 0.03 (one injury) in 2021, TRI rate – from 0.18 in 2020 to 0.09 in 2021. Our comprehensive approach to Asset Integrity also complemented the higher rate of the LTI. The Life Saving Rules and the Golden Rules of Comply, Intervene and Respect have long been embedded in all operations.
In 2021, with the view of reaching carbon neutrality and stabilising revenue, we made a decision to transit to green technologies and to ensure the project economy is diversified. Subsequently, this strategy had necessitated that all our processes undergo a number of changes. The selected directions for transformation were diversification and revenue improvement, cost base management, and transition to ‘Green KPO’.
In 2021, KPO achieved a world-class gas utilisation rate of 99.94 % representing only 0.06 % of flaring. We conduct a full-scale monitoring of environmental components, including air, surface water, subsurface water and soil, and implement emissions monitoring for air and wastewater discharges. We work on introducing 'green' technologies including GHG emissions reduction measures and efficient waste management techniques.
Our environmental and energy management systems have been continuously recognized as effective and in compliance with international standards ISO 14001:2015 and ISO 50001:2018. As of end 2021, KPO had invested US$ 445.4 mln into various environmental activities.
The Company had also been consistent in implementing personnel training and development programmes. In 2021, KPO local content in staff reached 98 % in professional and technical and 85 % in managerial positions. Our local content in goods, works and services exceeded 68,5 % or over US$ 564 mln.
In terms of social performance, KPO has kept investing into social infrastructure projects, such as Aksai Hospital Upgrade, construction of schools, sport and health centres, and residential houses in West Qazaqstan region. I am also proud to share that in December 2021, KPO received the Grand Prix Award at the National Contest of Social Responsibility of Business – Paryz-2021, in recognition of the Venture’s strong commitment to community, its own people and environment.
As the largest industry in the area, KPO creates value for a wide range of stakeholder groups and this in turn imposes responsibility on how we should operate our business. Trustful relationships and transparency with all our stakeholders become key to achieving sustainability goals. Leadership, innovation and co-operation will remain our main drives on this path.
Welcome to KPO 2021 sustainability highlights and please feel free to revert with questions or comments. Your feedbacks will be most appreciated and used to make our future reports better.
