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 decarbonization 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 faced with. Our priority targets require continuing energy efficiency activities and their assessment, including application of the best available technologies, implementation of fast-track projects, 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 consumption 

KPO carries out an annual energy review and energy efficiency monitoring as part of the energy efficiency measures. Following the review, in 2024 KPO experienced less than 1 % increase in energy intensity against 2023 that was due to start-up of the 4th Gas Injection Compressor in 2024.

In 2024, the energy consumption totalled 1,252,863 tonnes of coal equivalent compared to 1,189,548 tonnes of coal equivalent in 2023. Table No. 37 shows the energy consumption volumes broken down by energy type.

In 2024, the KPO energy intensity indicator was 1.14 GJ /tonnes of hydrocarbons, which was below the average energy intensity indicator of the companies that submitted their reports to the IOGP¹² (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 determining energy policy, setting efficiency goals and targets and working out energy saving and energy efficiency measures. / GRI 3-3 /

Energy Management System / GRI 3-3 /

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 August 2024, KPO successfully completed the surveillance audit against the ISO 50001:2018 standards. 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 integrated into the HSE Policy to be used as the guiding principles to determine and evaluate the energy efficiency goals and targets. KPO Integrated HSE Policy is an integral part of the long-term field development plan and contributes to achievement of strategic goals and targets of the Company. / GRI 2-23 /

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 efficiency activities

In 2024, KPO continued implementation of scheduled activities in accordance with the Energy Saving and Energy Efficiency Plan. 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 2024:

• The work continued on replacing lamps with LED ones at production facilities and utilities areas. 423 lamps were replaced in the Company facilities in 2024. The estimated savings in electrical power consumption per year from the replacement of the lamps was about 78,590 kW*h. In the period of 2020–2024, 8,202 lamps were replaced and around 1,346,755 KW/h saved.
• The work continues on implementation of the Green Office Project in KPO offices aimed at energy and water saving, as well as refusal from plastic disposable tableware.
• KPO process facilities were assessed against the Best Available Technologies (BAT) requirements in the field of energy saving and energy efficiency. Based on the assessment results, recommendations have been developed to bring KPO facilities into compliance with the BAT requirements currently in force in Kazakhstan.
• The opportunity of using renewable energy sources for power supply to buildings was assessed. One of the options considered was allocating a budget for implementation of a pilot project involving installation of solar panels to supply electricity to the emergency response station.
• A feasibility study of the GHG reduction opportunities for offset projects was carried out.
• This year, 73 employees have been trained on various topics related to energy saving, sustainable development, carbon neutrality and other aspects of energy efficiency.

Also, in 2024 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.

Promoting environmental awareness and culture

“Green thinking” is actively promoted amongst KPO and contractors’ employees. 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 2024, KPO carried out a number of activities among KPO and Business Partners’ employees as part of the Environmental Culture and Awareness Enhancement Program.

On 20^th September 2024, VII Uralsk Green Forum dedicated to the theme “Climate change: Challenges and Prospects of Using Advanced Technologies” was held in Uralsk. The Forum was attended by officials of the President’s Office, the Ministry of Ecology and Natural Resources and the Ministry of Energy, the WKO Akimat, members of the WKO Maslikhat, representatives of natural resources user companies, industry and specialized associations, agencies, experts, republican and regional media. As part of the Forum, awards were presented to Business Partner and KPО employees who had most distinguished themselves in the field of environmental protection and sustainable development.

Moreover, to identify, attract and promote the positive experience of eco-friendly traditions, customs, and practices of the families of KPO and Business Partners’ employees, the company held a video contest “Ecology and My Family.” Winners of the contest were awarded as part of the VII International Environmental Forum, Uralsk Green Forum.

The VII International Environmental Forum “Uralsk Green Forum” ended with a joint tree planting – a collaboration with the Forum participants and the “Solnechnyi Uralsk” Charity Foundation. The report is available at the link.

As part of the Environmental Culture and Awareness Enhancement Program, training videos were released on the Environmental Management System and Environmental Indicators for 2023. Over 1,700 employees completed the training.

In 2024, over 100 KPO employees took part in Uralsk and Aksai clean-up and improvement campaigns. Such campaigns promote reassessment of people’s attitudes towards waste and minimization of its generation.

In November 2024, KPO participated in the 29^th UNFCCC COP 29 conference. As part of the COP 29, the International Methane Emissions Observatory (IMEO) presented its annual report, which recognised that the operators of the Karachaganak field, Eni and Shell, were awarded the highest Gold Award for their level of methane emissions reporting. In addition, KPO confirmed its compliance with the OGMP 2.0 Gold Reporting Pathway, bringing it closer to achieving the key 2025 goal of becoming an OGMP 2.0 Gold reporting standard.

Green Office Project

Since 2020, the Company has been launching 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.

In 2024, the following measures were implemented as part of the Green Office Project Implementation Plan:

• Installation of flow restrictors on faucets and reduction of water flow in faucets in the WC of some offices.
• Installation of sensors in all WC to switch on/off the lighting in the leased buildings, replacement of old meters with new ones, and continuous monitoring of meters and electricity consumption.
• Insulation of walls, replacement of windows with new ones, replacement of window seals and upgrading of heating systems and radiators to reduce heat loss.
• Amending new contracts to reflect water and energy conservation requirements.

As a result of the activities, consumption of disposable tableware was decreased by 44 % compared to 2023 in the Company’s offices rented in Uralsk and Aksai.

“Say No to Plastic Cups” video and “Green Office Project” video presentation were released as part of the Green Office project’s informational support popping up on computer screens throughout the year.