OREANDA-NEWS. June 26, 2012. Karachaganak Petroleum Operating B.V. (KPO) has announced the publication of the 2011 Sustainability Report. The Report focuses on KPO’s performance in 2011 and reflects the company’s commitment to sustainable development, reported the press-centre of KPO.

KPO General Director, Damiano RATTI, said: “As a business, KPO measures its contribution to sustainable development by its success in minimising impacts and maximising opportunities linked to its presence. It does this by considering the long-term consequences of its decisions and engaging with stakeholders in a constructive dialogue while maintaining strong governance and transparency.

“At KPO we strive to continuously improve safety and environmental performance, production efficiency, and local capability through nationalisation, development of Kazakh talents and use of local goods and services.

“The success of Karachaganak has become possible due to strong collaborative partnerships between the Republic of Kazakhstan, local community and Karachaganak Partners. Last year, we reached a major agreement with the Republic that represents a new major milestone in our partnership, and a new landmark on the road to further development of Karachaganak for the benefit of the project partners, the government and people of Kazakhstan”, said Damiano RATTI.

In particular, in 2011, KPO produced over 138 million barrels of oil equivalent. A major milestone was a successful completion of the Fourth Stabilisation Train at the Karachaganak Production Complex with a total investment exceeding USD 1 billion.  The works were conducted by 14 Kazakhstani contractors employing almost three thousand people with USD650 million spent in the Republic of Kazakhstan.

Throughout 2011 KPO has continued the implementation of an annual HSE Plan focusing on leadership, contractor management, hazard awareness and risk control, monitoring and review, and road safety. In 2011, KPO greenhouse gas emissions decreased from 83.9 to 83.5 tonnes of CO2 per one kilo tonne of hydrocarbons produced. Flaring reduction remained a key area with only 0.08 per cent of the total gas flared. Overall gas utilisation achieved by KPO in 2011 made up 99.92%, which is a world-class performance.

Last year, KPO successfully extended certifications for the Occupational Health and Safety Management System and Environmental Management System against the OHSAS 18001 and ISO 14001 standards.

Implementation of the KPO ten-year Nationalisation Plan has continued. Last year, national employees of KPO filled 100 per cent of skilled and clerical positions, 95 per cent of professional and supervisory and 69 per cent of managerial positions.

KPO’s commitment to local content development has resulted in awarding contracts worth over USD 387 million to 341 Kazakh companies for the provision of goods, works and services. In 2011, Kazakh Content in Karachaganak venture made up 38 per cent, or USD 268 million.

In 2011, KPO invested more than USD 30 million into social infrastructure and philanthropy projects. 

The Uralsk Gas Pipeline connecting community settlements from the Karachaganak field to Uralsk was successfully completed.  This important social project will ensure stable gas supply to more than one hundred thousand residents of five districts of the Western Kazakhstan Oblast. Other projects included construction of the heating networks in Uralsk, construction of water pipeline Aksai-Akbulak, reconstruction of the Boiler house in Aksai micro-district #10, a school in Priuralnoye village as well as construction of music school in Zhympity village.

The above listed achievements demonstrate that KPO’s aspiration to leave behind a sustainable legacy is imbedded in virtually all facets of the Venture, thus becoming part and parcel of Karachaganak’s ethos. The Report has been independently verified by Ernst & Young LLP and is available from the company website, www.kpo.kz.