Why is it important to us?

Operational tasks at the Karachaganak field and the works on the implementation of further expansion projects are mainly performed with the aid of the KPO contractors. On average, over 17 thousand employees from Qazaqstani contractor and subcontractor organisations are engaged in the Karachaganak Project. Accordingly, the successful implementing of the set tasks and reaching the performance indicators depend on how properly the employment relations are built both in KPO and within the collectives of contractor and subcontractor companies involved.

In order to mitigate any potential risks for security and social instability, KPO takes every possible effort to ensure integrity of operational facilities and security of all personnel at the Karachaganak field including contractors.

Business principle:

In our interactions with business partners, we seek to listen and respond to them honestly and responsibly.

Business principle:

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

Work with contractor organizations in 2022

Conflicts and Security

Industrial relations

Continuous monitoring and analysis of the current situation in the labour collectives are performed to prevent any violations of rights of the workers from contractor and subcontractor organisations, to identify and correct any potential factors, as well as root causes and conditions bringing about day-to-day social non-conformities, infringement of the legitimate rights of the employees. Such factors as absence of acceptable day-to-day social conditions or observation of legal regulations in the contractor and subcontractor organisations may contribute to such risks.

Around 17 thousand employees from 151 contractor companies furnishing services at the Karachaganak field are being monitored by the Industrial Relations Section.

In the course of monitoring violations of labour rights KPO seeks to ensure an integrated and prompt review of all applications/complaints and to provide timely resolution of all issues. Such monitoring includes due consideration and analysis of opinions from all sides, reasonable measures to protect and reclaim labour rights of employees in accordance with the legislation of the RoQ, the Industrial Relations Policy and contractual commitments, including:

  • Continuous monitoring of day-to-day social conditions, provided by contractors, full and timely payments of wages, provision of PPE, etc.;
  • Organising subject forums and conferences dedicated to relevant themes (HSE, social welfare, etc.);
  • Co-operation and engagement of competent labour protection authorities in the settlement of conflict situations, as well as awareness-raising and educational events;
  • Fixing the minimum salary size for provision of services in the amount of KZT 830 per hour after deduction of all compulsory payments. Implemented upon expiry of contractual commitment terms under the effective agreements;
  • Succession/transfer of skilled personnel from the existing contractor (whose contract term expires) to a new one. This implicit practice helps to maintain the employment level in the region and to uphold the socially stable environment in the period of service contract terminations.

Besides, as a part of the efforts to maintain the stable social environment in the contractor organisations, KPO developed and introduced a general monthly salary bonus in the amount of KZT 60 thousand, net of tax, and the prompt implementation of this measure improved financial situation of over 15,000 employees from contractor and subcontractor organisations. The general salary increase introduced as from 01 February 2022, was chosen to demonstrate equal attitude to all beneficiaries, but with substantial focus on the category of workers with the lowest wages. This decision was agreed in a meeting with engagement of the WQO Akim, Vice Minister of Energy, General Director of “PSA” LLP and General Director of KPO.

In 2022, employees of the Industrial Relations Section made 236 trips visiting over 545 work sites and compact accommodation premises, including six joint audits with the contract holders. 34 sessions of the tripartite district commission were held to discuss identified risks in the contractor and subcontractor organisations. As part of the monitoring process KPO also registers the number of Collective Agreements in the contractor companies because they serve as an indicator of compliance with the employees’ rights for freedom of association and collective bargaining. 32 contractor companies had Collective Agreements in place in 2022.

In total, 190 complaints/applications on different subjects from contractors’ employees were received and addressed in 2022. 92 % of the applications had to do with the salary payment and remuneration issues (the growth of such applications was due to the introduction of the general salary increase in the amount of KZT 60 thousand), 6 % of the applications were related to HSE matters and 2 % were dedicated to the provision of day-to-day social conditions. Apart from the written applications, the Industrial Relations Section is also processing from 2 to 20 daily phone calls and holds meetings with employees from contractor and subcontractor organisations. In general, as a result of the monitoring, audits and processing of received applications, actions on improvement of living and labour conditions were taken in 52 contractor companies monitored by the Industrial Relations Section. This, in its turn, contributed favourably into maintenance of the stable moral and psychological atmosphere in the working collectives.

Compliance with the declared labour conditions and day-today social welfare is monitored as a part of the fulfilled activities to prevent infringement of the labour rights. An integrated approach is used in the process of the above-mentioned activities: each application/complaint is analysed to ensure fullness of information.

In 2022, in relation to re-vaccination of the local population against the COVID-19 in Qazaqstan, the Industrial Relations Section held a number of online meetings with representatives of Health Department in order to exchange information on positive vaccination effects with the contractors.

Tab. 22. Examples of contractor’s applications to the KPO Industrial relations section

Examples of applications


An application from a contractor’s employee to KPO regarding unsatisfactory labour conditions provided by the employer: the workers’ inventory was in a critical condition.

As a result of an inventory check, the employer had to provide a new inventory for performance of works to the employees.

An application from a contractor’s employee about unsatisfactory living conditions in a hostel: non-observation of the sanitary-epidemiological norms, the residential area not conforming to the number of residing employees, safety breaches – absence of a smoking area, irregular collection of solid domestic wastes.

As a result of an audit, the company providing accommodation services moved the employees to other rooms complying with the sanitary-epidemiological norms, provided supplementary rooms for the employees, arranged a smoking area in compliance with the safety norms and organised the regular collection of solid domestic wastes.


Following the results of activity of the Security and Industrial Relations Department in 2022, 1 049 violations were found 94 % of which were related to strategy on ensuring protection of people in the event of H2S incidents while the rest involved Material and Asset Movement Control, Policy on Prohibition of the Use of Alcohol, Drugs, Psychotropic and Toxicomanic Substances (their analogues) in KPO and violation of border of the Field perimeter. Significant number of violations is the result of activity undertaken to prevent persons not following H2S Strategy from entering the Field.

33 internal investigations were conducted. These included seventeen applications which were submitted to law-enforcement agencies.

During 2022, KPO has revealed and prevented cases of unauthorized removal / relocation of KPO and contractors’ assets worth approx. KZT 118 mln.

Employees of the security company providing complex security services on the export pipelines have rendered assistance to the WQO law-enforcement agencies in detaining persons who illegally crossed the RoQ Border.

The use of the new Sintela security software has significantly increased overall monitoring quality, including more precise threat identification and improvement of patrolling.

In the Sustainability Report 2021 we informed on the increased security actions taken at the KPO operational facilities during force-majeure and state of emergency in Qazaqstan in January 2022. In addition, it is worth noting that considering the high employment rate of the Burlin district and the WQO residents at KPO, the Company primarily targeted at prevention of the destabilization of public order and acted in direct interaction with law-enforcement agencies and public authorities.

To minimize security risks and the Company’s impact resulting from its activities, we have determined several targets which implementation results are presented below.

Tab. 23. Our targets in security

Our 2022 targets

Target achievement

Actions taken in 2022

Targets for 2023

Ensure zero illegal taps in the KPO export pipelines


Regular monitoring of the export pipelines was provided by mobile patrol teams and the Sintela monitoring and notification system.

Ensure zero illegal taps in the KPO export pipelines

Install metal detectors and automatic breath test systems at the security check points of Unit-2, Unit-3 and KPC red zones in order to prevent unauthorized removal of assets and monitor physical condition of personnel

In process

Issue regarding installation of metal detectors is at the stage of approval by Unit Managers and in parallel market research to identify potential providers.

Issue regarding installation of metal detectors and door frame metal detectors shall be agreed with all Unit Managers and start process of equipment purchase and installation

Continue training on Human Rights and Security Principles (HRSP) for security personnel


As of end 2022, the training covered 100 % contractor security personnel.

Conducting the HRSP training has been included in the terms of 100 % contracts for providing security services.

Continue training on Human Rights and Security Principles (HRSP) for security personnel, as well as for new personnel

Complete the tender for a provider and installer of the security systems at KPC, Unit-2, Unit-3 and EOPS. Proceed with the project implementation.

In process

In 2022, contract for purchase and installation of equipment as per Security Management System project, Phase 2 wasn’t awarded due to low number of technically acceptable bidders.

  • Design documentation is to be updated;
  • Revise and update Phase 2 implementation strategy considering changes to the RoQ legislation requirements in terms of environmental assessment and relaxation in the requirements to perimeter lighting.

Define the scope of work covered by the Security Management System project at the facilities: Bolshoi Chagan OPS, Pilot Camp and Eco Centre

In process

  • Detailed designing of Security Management System at Bolshoi Chagan OPS is being developed.
  • Scope of work for detailed designing of Security Management System at Pilot Camp is under tender.
  • Scope of work for detailed designing of Security Management System at Eco Centre is at the stage of Terms of Reference completion.
  • Complete detailed designing of Security Management System at Bolshoi Chagan OPS facility;
  • Commence detailed designing of Security Management System at Pilot Camp;
  • Run a tender for designing of Eco Centre.
  • Continue replacement of simple electronic cards with electronic chip cards;
  • Identify and purchase required quantity of readers for further implementation of the project.

In process

Due to delay of electronic cards delivery by provider the process of replacement of vehicle passes simple cards with electronic ones was suspended.

Complete replacement of vehicle passes simple cards with electronic ones before the end of June 2023.