About this Report
Karachaganak Petroleum Operating B.V. Kazakhstan branch (KPO) is an international oil and gas condensate company that carries out production and exploration of hydrocarbons in West Qazaqstan region of the Republic of Qazaqstan. On behalf of its parent companies Shell, Eni, Chevron, Lukoil and KazMunayGas, KPO is an operator of the Karachaganak Field, one of the world’s largest oil and gas condensate fields.
In the past 14 years, starting from 2008, we have been reporting to stakeholders about our efforts in sustainable development. This Report is the fourteenth in a row. Traditionally, the Report outlines our performance for the preceding year through the prism of three pillars of sustainable development: social, environmental, and economic. This approach is in line with the global ESG-agenda. Furthermore, here we disclose our management approach, social partnerships and environmental initiatives implemented through engagement with key stakeholder groups.
Sustainability fidelity is our license to operate when contributing to society goes alongside with the subsoil use. KPO is committed to the principles of its Sustainable Development Charter. These principles meet the widely acknowledged definition of Sustainable Development as “development that meets the needs of the present without compromising the ability of future generations to meet their needs”.
OUR MISSION
To support the achievement of our mission, we continue embedding sustainable development thinking into the way we do business. This means that in all our activities we shall:
- look to minimise impacts and maximise opportunities linked with its presence;
- consider the consequences of our decisions in the long-term;
- engage our stakeholders in a constructive dialogue;
- incorporate strong governance and transparency.
Report scope and boundaries
The boundaries of the KPO Sustainability Report relate to all Company operations in the allotment area of the Karachaganak Oil & Gas Condensate Field and export pipeline systems: Karachaganak-Orenburg Transportation System (KOTS) and Karachaganak-Atyrau Transportation System (KATS).
The Sustainability Report is for the KPO performance in 2021 calendar year. This document presents an overview of our performance in 2021 and plans for the following 2022 year. In order to demonstrate our sustainability commitments, the data disclosed in the Report is presented in comparison with previous years. Following the established practice and as per the GRI Standards principles, we disclose both our achievements and issues. Our material topics are reflected in the Contents of the Report and listed in the relevant chapter. This Report has been endorsed by the KPO Directors` Committee and reviewed by the members of the Operators’ Sustainability Sub-Committee.
Our previous Sustainability Report for 2020 was issued in late August 2021. The archive of all our issued sustainability reports is available on our website at www.kpo.kz/en/sustainability. In addition, our reports are posted at the Corporate Register web database, one of the largest global online directories for corporate responsibility reports, available at www.corporateregister.com.
KPO acts as an Operator in accordance with the Final Production Sharing Agreement (FPSA) signed between the shareholders of the Karachaganak Project and the Government of the Republic of Qazaqstan.
Funding for the Branch is provided by the shareholders, and all capital assets constructed or purchased by KPO are not depreciated, depleted or amortized given the retained right to use the assets by the shareholders as per the FPSA. The FPSA does not foresee capitalisation in terms of debt and equity. Accordingly, no sales and results are recorded in the financial statements of KPO. Revenues from the KPO activities are shared between the Government of the Republic of Qazaqstan and the shareholders, who solely report about their financial accounts, including revenues, net sales, capitalisation, etc. in their own financial reports.
Applicable Global Reporting Initiative Standards
This Report and has been prepared in accordance with the requirements of the GRI Standards of 2016 and 2018 in the ‘Core’ option and the Oil and Gas Sector GRI Standards of 2021. The Report provides disclosure of indicators related to our most significant material topics.
Our goal is to ensure the appropriate level of transparency and reliability in our sustainability report, as required by the GRI Standards, which we consider as most applicable for us in sustainability reporting.
KPO has been reporting on its sustainable development since 2008.
- From 2008 through 2012, our early publications were prepared in accordance with the GRI Guidelines 3.
- From 2013 through 2016 KPO reports were issued in accordance with the Fourth Guideline of the Global Reporting Initiative. In 2014, KPO was one the first companies in Qazaqstan to have applied the requirements of the GRI G4.
- From 2017 to 2020 KPO sustainability reports were issued in accordance with the requirements of the GRI Standards.
Independent assurance
When preparing this issue in 2022, KPO has not applied for independent assurance due to budget unavailability and time constraints.