LOCAL COMMUNITIES / GRI 3-3, 413-1 /

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BUSINESS PRINCIPLE:

Communities

We aim to be good neighbours by continuously improving the ways in which we contribute directly or indirectly to the general wellbeing of the communities within which we work.

We build productive, collaborative and trusting relationships with government, the local communities where we work and with each other.

We strive to be open, straightforward, and transparent within the constraints of business confidentiality.

 

In its operations, KPO strives to prevent or minimize negative impacts and maximize the benefits from its presence through continuous engagement with local communities and creating conditions for their wellbeing and economic growth.

The targets in table 25 are aimed at supporting the local communities living in three rural districts of Burlin district – Priuralnyi, Zharsuat and Uspenovskiy villages located adjacent to the Karachaganak Field and Aksai town.

Tab. 25. Targets in community engagement / GRI 3-3, SDG 4, 8, 10, 16 /
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2024 targets

Target achievement

Actions taken in 2024

Targets for 2025

Implement the 2024 Community Development Programme as per approved budget

Completed

The Akzhaiyk sanatorium recreation for

the elderly community members was implemented.

The Scholarship Programme for rural school graduates successfully continued.

Implement the 2025 Community Development Programme as per approved budget

Conduct 10 Village Council meetings in three rural districts on social and environmental issues

Completed

12 Village Council meetings were held in

three rural districts. Along with this, additional meetings outside of Village Councils were held to answer the residents’ questions.

Conduct 10 Village Council meetings in three rural districts on social and environmental issues

Review and timely close all incoming grievances and suggestions from the communities

Completed

All received grievances were reviewed and effectively closed out

Review and timely close all incoming grievances and suggestions from the communities

Aiming to implement initiatives in the area of corporate social responsibility, KPO applies policies, standards and procedures based on the Performance Standards of International Finance Corporation. / GRI 2-23 /

In order to maintain effective dialogue with local communities on social, environmental and infrastructural support, KPO conducts meetings and consultations in the form of Village Council meetings with participation of Company employees and representatives from rural districts.

In 2024, 12 Village Councils meetings were held in the Priuralnyi, Zharsuat and Uspenovskiy rural districts. During the meetings, the local residents were informed of the KPO Community Development Programmes for 2024, on the progress of students from these rural districts who study in colleges and universities of Uralsk under the KPO Scholarship Programme, as well as KPO Environmental Monitoring Programme.

In 2024 seven residents of Priuralnoye, Uspenovka and Karachaganak Villages graduated from West Kazakhstan Oblast Universities and Colleges obtaining Diplomas of Schoolteachers and medical nurses. Most of the graduates return to work at local Schools and Clinics in rural communities of Burlin District and Aksai City. The graduates provided positive feedback to KPO about its Scholarship programme which allows the local youth from families with low income to get a tertiary education.

In 2024 a new group of eight students were enrolled in West Kazakhstan Oblast Universities and Colleges from Priuralnoye and Zharsuat Villages. They will study at Medical Colleges to become dentists and at West Kazakhstan Universities studying history, geography, maths. Upon graduation they plan to return to Burlin District to work as Schoolteachers and medical staff.

As part of the Community Development Programme, KPO provided 177 vouchers for the elderly of Burlin district for health recreation in the Akzhaiyk Sanatorium.

Support provided during the Spring Flood

On 1 April, 2024 the local authorities of West Kazakhstan Oblast declared Emergency Situation due to spring flood which affected Terekty, Akzhayik and Burlin Districts and the City of Uralsk in West Kazakhstan Oblast.

As a socially responsible corporate citizen KPO worked closely with WKO authorities and other stakeholders in the region to provide maximum assistance to all those in need.

Within March – April, 2024 KPO and its Business Partners in close collaboration with local authorities mobilized over 125 specialized vehicles to conduct various protection activities, ensuring the safety of communities in need, dispatching a fleet of loaders, excavators, and bulldozers to bolster flood prevention activities in Uralsk, and above mentioned Districts.

KPO’s contribution to construction of temporary dams in Aksai, Kentubek, Zharsuat, Burlin, Oblavka, Bumakol, and Kanay Villages in Burlin District was crucial in preventing flooding and safeguarding the mentioned villages.

Thanks to engagement of KPO Community Relations team with local residents and the support provided by the Company in repair of the road connecting the Karachaganak Field with the Karachaganak Village with installation of 2 culverts completed in 2023 the Village of Karachaganak was not affected by the 2024 Spring Flood. KPO received a thanking letter from local authority for this assistance.

KPO provided financial support in the amount of US$ 64 mln transferring it to Akzhayik Private Fund for purchase of housing for flood-affected households in West Kazakhstan Oblast.

Community feedback mechanism / GRI 2-16, 2-25, 2-26, 413-1, SDG 16.10 /

In 2024, in accordance with KPO Community Grievance Procedure, we received 29 complaints and requests from the local community near the Karachaganak Field. These included 3 gas odor complaints and 26 requests and suggestions of various nature from the local communities living in close proximity to the Karachaganak Field. Residents expressed their interest in the Company’s social initiatives aimed at supporting socially vulnerable groups of the population.

Check-ups carried out by the KPO Operations Environment Monitoring Team did not reveal any malfunctioning of the process equipment, leaks/emissions or MPC exceedances in each case reported. Upon completing the review, some feedback was communicated to the residents who had filed the complaints.

KPO engagement with local authorities of Zharsuat rural district and discussion of flood prevention measures

Demolition Project of resettled Villages of Berezovka and Bestau

In 2024 KPO started the implementation of the Demolition Project of Berezovka and Bestau Villages resettled at the end of 2017 to Aksai and Araltal in Burlin District. According to Detailed Engineering Design (DED) of the Project prepared within 2022 – 2023 all the rubble from the territory of resettled Villages has to be transported to Aksai-based waste dump. However, the Ecological Conclusion for the mentioned DED for Demolition Project was withdrawn to make some new amendments to waste disposal part. The new Ecological Conclusion issued in October, 2024 included additional scope of activities on disposal and processing of domestic solid waste and construction waste. It is planned to complete the Demolition Project in the summer season of 2025.

New social investment project – Batys AgroHub.

In 2024 the Shell Kazakhstan and Eni Consortium which are the partner companies of KPO provided financial support for a 3-year social investment project on development of agrobusiness in Burlin District in West Kazakhstan Oblast where they jointly operate the Karachaganak Oil & Gas Condensate Field.

The Project’s name is Batys AgroHub and it is aimed at supporting local farmers in Burlin District to help develop agriculture and support economic growth in the region. The Batys AgroHub Project is implemented by the Eurasia Foundation of Central Asiain partnership with the Local Community Foundation. KPO provides administrative and logistical support to the Project. In November, 2024 a Memorandum of Understanding (MoU) was signed between Shell Kazakhstan, Eni, KPO and Eurasia Foundation of Central Asia which gave start to the Project.

On 24 – 25 December, 2024 Batys AgroHub training was held in Aksai, involving 36 participants from various communities of Burlin District. During the training the participants learned about the vegetables farming techniques and were provided with guidance for preparing grant applications. A total of 34 participants successfully completed the training and received Certificates. These certificates grant them eligibility to participate in the grant competition.

Public hearings / GRI 2-29, SDG 16.10 /

In 2024, the Burlin District Akimat, in collaboration with KPO, held public hearings on the draft report on potential impacts from the project “WMC Solid Industrial Waste Burial Landfill, the second stage of construction. KOGCF, WKO”. The hearing was attended by representatives of concerned state authorities, interested community, KPO, NIPIneftegas JSC design contractor.

At the public hearings, KPO and NIPIneftegas JSC representatives informed the participants of the public hearings about the planned work activities, possible environmental impacts during the construction and operation of the Landfill, and measures aimed at reducing such environmental impacts.

At the public hearings, questions were raised by participants regarding the project’s completion timeline and the potential environmental and public health impacts of the Landfill. Representatives from both KPO and NIPIneftegas JSC provided comprehensive answers to all questions raised.

The public hearing was considered to have taken place. Subsequently, the Environmental Authority issued a conclusion to KPO that the draft report on potential impacts from the project “WMC Solid Industrial Waste Burial Landfill, the second stage of construction. KOGCF, WKO” is in compliance with environmental legislation.

Why is it important to us?
/ GRI 3-3 /

Engagement with local communities to understand their needs and the local context is reflected in the principles of the KPO Sustainable Development Charter.

Building good relationships and maintaining a constructive dialogue with local government bodies and communities is essential for sustaining our ‘social license to operate’ in the West Kazakhstan Oblast.

By engaging with the local communities of the Burlin district during the implementation of construction projects, KPO aims to minimizing social and environmental risks associated with the Company’s activities at the Karachaganak field.

Zulfiya Muzafarova Community and Local Authorities Relations Manager