Energy efficiency

KPO assumes responsibility to preserve favourable conditions for life-sustaining activity of future generations and make contributions in achieving the goal to decrease energy intensity and de-carbonization of the economy of the Republic of Kazakhstan. Ensuring energy resources extraction, while transitioning to low-carbon technologies, is one of the challenges that we face. Our current targets require continuing energy efficiency activities and their assessment, including application of the best available technologies, energy-efficient equipment and environmentally friendly materials.

In order to minimize energy efficiency risks and impact of the Company, we have set a number of targets. The results of their implementation are presented further in the text.

Energy Management System

The ISO certification contributes to enhancement of the KPO reputation as a reliable partner to the Republic of Kazakhstan that takes appropriate actions to meet both regulatory requirements and international standards.

In July 2023, KPO has successfully conducted a certification audit against the ISO 50001:2018 standard. Following the audit, the KPO Energy Management System was recognized as corresponding to the international standards.

In accordance with the ISO 50001:2018 requirements, KPO Energy Policy was developed to be used as the guiding principles to determine and evaluate the energy efficiency goals and targets. The KPO Energy Policy is an integral part of the long-term field development plan and contributes to achievement of strategic goals and targets of the Company.

KPO supports a trend on personal approach to eco-friendliness, green thinking and conscious consumption. Company has implemented and apply the “Green office” concept to ensure more efficient application of the existing procedures of environmental and energy management.

KPO Green Rules focus on driving forward the personnel’s willingness to change and be inspired to take action and reduce not only individual but also Company’s impact on the environment. These Rules contain clear and simple instructions for all KPO and contractors’ personnel and visitors on how to contribute to the improvement of the environment.

Energy consumption

KPO carries out an annual energy review and energy efficiency monitoring as part of the energy efficiency measures. Following the review, in 2023 KPO experienced an increase of energy intensity by 2.7 % against 2022 that was due to Turnaround activities at the Karachaganak Field facilities and start-up of the 4^th Gas Injection Compressor in 2022.

In 2023, the energy consumption totalled 1,189,548 tonnes of coal equivalent compared to 1,109,277 tonnes of coal equivalent in 2022. Table 37 shows the energy consumption volumes broken down by energy type.

Tab. 37. KPO energy consumption in 2021–2023

In 2023, the KPO energy intensity indicator was 1.13 GJ /tonnes of hydrocarbons, which was below the average energy intensity indicator of the companies that submitted their reports to the IOGP¹³ (1,5). The outcomes of this comparison analysis provide the basis for identifying areas of significant energy consumption and possibilities for improving Company’s energy characteristics, and also determining energy policy, setting efficiency goals and targets and working out energy saving and energy efficiency measures. 

Graph24.Dynamics of energy intensity, 2021–2023

Energy efficiency activities

In 2023, KPO continued implementation of scheduled activities in accordance with Energy Saving and Energy Efficiency Plan for 2022–2026. The Energy audit being carried out every five years is planned for 2025.

In accordance with the approved Plan for Energy Saving and Energy Efficiency improvement the following activities were completed in 2023:

• The work continued on replacing lamps with LED ones at production facilities and utilities areas. In 2023, 990 lamps were replaced in the Company facilities. The estimated savings in electrical power consumption per year from the replacement of lamps was about 266, 045 kW*h. In the period of 2019–2023, 12,564 lamps were replaced and around 1,651,845 KW/h saved.
• The work continues on improving the fuel gas reporting process.
• The work continues on implementation of the Green Office Project Plan in KPO offices.
• The opportunity of using renewable power sources for power supply of KPO administrative building was assessed.

Also, in 2023 as part of the Green Strategy, a number of studies were carried out, variety of options evaluated for achieving Energy concept goals, in particular, options of implementing energy efficiency activities were reviewed, including the use of BAT and installation of energy saving equipment.

Improvement of environmental awareness and culture

“Green thinking” is actively promoted amongst KPO employees and contractors. Activities raising environmental awareness and culture stimulate more careful attitude to the Company resources and raise personnel loyalty to the introduction of green technologies and practices.

In 2023, KPO carried out a number of activities among the employees and contractors as part of the Programme on improvement of environmental awareness and culture.

On 2nd June 2023, the VI Uralsk Green Forum (UGF) was held in Uralsk. The participants discussed the topic ‘New Trends in the ESG and Sustainable Development Principles Integration’. The Forum was attended by more than 170 participants, including representatives of the RoK Public Chamber of the Majilis (Parliament), companies – natural resources users, environmental associations, experts, environmental and “green” transformation specialists, national and regional media, and students.

“Sustainable business development and ESG fundamentals” workshop was held as part of the VI UGF, where such topics as political economy of the climate change agenda, management of sustainable development risks, corporate governance and sustainable green funding were discussed. Video is available by this link.

On 22nd December 2023, KPO held the workshop for contractor organisations on the theme “The RoK Environmental Code. Relationship between the contractor organisation and the Operator. Contractor’s compliance with the RoK Environmental Code requirements”. The workshop hosted over 100 attendees.

In 2023, the KPO Environmental Concept has been developed, – the Company’s strategic vision for achieving the environmental goals until 2037. The Concept has outlined the Company’s activities in minimizing its environmental impact.

To achieve the set environmental targets within the established time frame, the KPO Environmental Work Programme was developed, where the activities and specific tasks for further ensuring the maximum possible environmental impact mitigation and sustainable development of the Company were defined.

In 2023, on occasion of the Safety & Environment Day KPO participated at the “Eni Award 2023“ and received a special “Eni Safety & Environment Award”. The Environmental Award 2023 was presented for the effective implementation of the Water Use Reduction and Optimisation Project in the Field.

In July 2023, a training video was released on the KPO electronic system for managing environmental aspects registers EnvAR. This system is available to every KPO user for review and use as a reference guide on all environmental aspects and existing control measures to minimize the environmental impact.

In 2023, over 250 KPO employees took part in Uralsk and Aksai clean-up and improvement campaigns. Such events promote reassessment of people’s attitude towards waste and minimization of its generation.

Green Office Project

Since 2020, the Company has launched the “Green Office” Project, the goal of which is to create a conscious concern for the environment and to minimize the environmental footprint of the Company’s offices.

The Green Office Project Implementation Plan was issued in 2023. The Plan highlights short-term and long-term measures aimed at water and energy conservation, separate waste collection (SWC) and refusal from plastic disposable tableware and the goal of “Zero Plastic Waste by 2030”. As a result of these activities, consumption of disposable tableware was decreased by 75 % compared to 2019 in the Company’s offices rented in Uralsk and Aksai.

The issued Green Office Guideline provides for recommendations to save natural resources used in the offices, to create favourable micro-climate for employees and to introduce ecological infrastructure.

In 2023, as part of the promotion of the Green Office Project and Leadership and Safety Culture Programme to minimize the use of plastic disposable tableware in the Company’s offices, the Safety, Environment & Asset Integrity Directorate presented environmentally friendly sets of tableware to all KPO employees.

In the electronic version of this Report, readers may watch the video “Say “No” to paper cups” and presentation about the “Green Office Project”.