Kazakhstanskaya Pravda

By Ludmila KORINA

Karachaganak in Priural’e is considered the locomotive of the economy. There are reasons for this. The oil and gas condensate field is a lot of investment, thousands of workplaces and operations at the level of international standards. KPO constantly participates in the social reconstruction of the region.

The consortium was awarded for this continuity. On the eve of the Day of the Oil and Gas Industry Worker the Ministry of Energy and Mineral Resources awarded KPO with the certificate “Social Projects”. According to Exclusive Magazine annual survey of public opinion “The Rating of Reputation of Oil and Gas Companies” KPO and Chevron had the first place. At KIOGE 2006 KPO won prize “The Peoples’ choice”.

The Oblast residents always had their hopes with Karachaganak. But it has had a hard life. The beginning of development coincided with the time of the collapse of established connections. It caught a second breath when the investors came. It is always hard to get used to new things. But as the President said many times, in those years the cooperation with foreign companies was the only right choice.

Soon it became obvious that Karachaganak project not only has importance for stable and sustainable development of the economy, but also is a convincing example in the successful partnership with western companies. Now WKO has achieved the Kazakhstani highest growth of industrial production.

In Uralsk, the cluster of Oil and Gas Machine Building is formed. The plants that worked as portion of military industrial complex were able to live due to the orders of Karachaganak. Economic diversification allowed finding new niche and produce demanded products.

Cooperation with the oil and gas sector continues to be profitable and promising. The Uralsk plant - Metallist went bankrupt, and now on the plant West Kazakhstan Machine Building Company operates successfully.

The implementation of the state housing construction programme is ahead of schedule. The construction companies were able to develop due to participation in the field construction. During the second phase of project Karachaganak was a huge construction site. Existing capacity from Soviet times were modernised, well overhaul was conducted, new gas and liquids processing facilities were commissioned.

Over 600 km long Karachaganak-Bolshoi Chagan-Atyrau export pipeline was built. It connected the field with CPC and gave access to international markets to Karachaganak oil. A railroad, power station was built at the field. Then almost 20 000 people worked at Karachaganak. 80% were local specialists. Over 500 Kazakhstani companies won tenders and concluded contracts for supply of goods and services.

Another aspect is high requirements which are made to the quality indicators. The level of qualification of specialists who went through the school of professionalism of Karachaganak is not questioned. For construction companies cooperation with foreign companies is a sign of reliability. And today reputation for any company has importance, because it turns into profits.

Investors support small and medium size business, which also affected the development and entrepreneurial initiative and development of medium class. The main the areas of this significant work in KPO were determined. First of all it is micro-loans.

What is more important is the education of beginning entrepreneurs and re-qualification of unemployed. One of the successfully implemented projects is the business incubator in Aksai. Almost a year ago Burlin District Akimat, where the field is located, West Kazakhstan Association of Entrepreneurs DAMU and KPO united efforts in order to create favourable conditions for those who decided to open business.

According to the DAMU Chairman, all newly established producers are demanded, and have a chance to grow. Auto service, sewing shop, barber’s shop, shop, foreign language courses… This is just a starting stage. Soon the business centre offered support to rural residents. KPO allocated loan able funds for the development of entrepreneurial operations in settlements near the field. Special care is provided to these villages. Natural gas was connected here in the first turn. Support is provided in renovation and equipment of school, Houses of Culture. Now loans allow to operation with stability to farms, the number of cattle grows, bakeries open, as well we cafes, sweet shops. DAMU has great plans.

It is planned to hold educational seminars, consultations on marketing and planning, provide legal support, and support in gaining access to the newest business technology. The business incubator accompanies its proteges from the beginning to the time when the businessperson can develop production. Other people will come to their place, and the chain reaction of support to the beginners will continue.

It is noteworthy that the support to rural residents is built on long term basis. The funds for microloans are allocated since 2003.

The purpose grant for the education of farmers was provided to West Kazakhstan Agrarian Technical University. The education is provided not only inside WKATU, but also there is field training. A group of consultants from the University underwent a special training at the Saratov Agrarian University. Educated agriculture gives a good economic result. Now in the conditions of becoming WTO member, the application of modern and scientific technology in agriculture, cattle breeding, agricultural processing is necessary.

The most visible results were achieved in the social reconstruction of the region. Annually KPO invests USD 10 MM into social development. Uralsk residents are proud with their Ice Palace, for 1500 visitors.

Various sports competitions of national and international level are held. There is an ice skating school. The Oblast largest hall can be transformed into a site for shows, concerts and exhibitions. The real cultural centre is the Kazakh Drama Theatre. This is the first Theatre in the country built anew in the years of independence. Schools, stadiums, swimming pools, gas pipelines, roads – the list of social projects is huge.

Only local construction companies are used for its implementation. KPO social programme specifies priority areas, which are implemented in accordance with the Oblast administration. These are education, healthcare, culture.

On September 1 the first bell rang in the new school built for the investors’ funds in one of the Uralsk microdistricts. It is for 1300 students and complies with the most modern standards. Two gyms, physics and chemistry rooms, equipped with modern equipment, large classrooms – with all conditions for learning, extracurricular operations.

An urgent problem is solved. In North-Western district of Uralsk new blocks are built. Children learning in Kazakh had to attend schools in other districts. Now they do not have for doing this. This is the third school in Uralsk, whose construction was funded by KPO. Each school is an example of high quality construction work.

The contribution into the modernisation of the healthcare base is huge. First order attention is provided to the support of medical institutions from the very beginning of the consortium operation in Priural’e. The renovation, or even the construction anew was done at the Aksai and Kazatal district hospitals. The formerly not used sanatorium was re-equipped into a modern cardiological centre.

The Oblast heart disease hospital was also reconstructed. Therapeutist complex and polyclinic were renovated. The surgical complex allows going to a new level of medical servicing. It was commissioned last year. This cost KPO USD 5 MM.

The conditions created in the hospital were demonstrated to the scientists from Kazakhstani and Russian capitals. The international seminar “New Technologies in Practical Medicine” was held. The guests spoke highly of the opportunities of highly precise equipment produced by famous world companies. This year funded by KPO renovation of two more buildings of the hospital was carried out.

With the help of foreign companies the main problems of Aksai were solved, namely the step-by-step replacement of the entire water and heating supply system of. A lot of work has been done with application of the most modern materials, ensuring high reliability. The power for water pumping was enhanced; and a new water tower was built. Taking into account further growth of population new communications facilities were built. Heating points operation was improved, treatment facilities were built.

The project cost USD 20 MM. They say that the country’s image is determined by the attitude to old people and children. Every year veterans and schoolchildren of Burlin district rest in the sanatorium AK Zhaiyk located on Ural River bank. The stay is funded by the field management. Beautiful nature, great medical servicing, curing qualities of Ak Zhaiyk mineral water – all these fill with energy and health.

Culture in Priural’e is funded well. Its contribution is done by Karachaganak. financial support is provided during renovation and re-equipment of Houses of Culture. Library funds are replenished. The Kurmangaliyev Philharmonic, the Ostrovsky Oblast Drama Theatre was both reconstructed. The street on which the theatre is located was improved. It became one of the favourite recreation places for city dwellers.

Philharmonic orchestra directed by the talented and famous violinist Marat Bisengaliyev is now based in Uralsk. KPO is the general sponsor of all three Uralsk international competitions of young violinists. The orchestra had new voice when the company gave it new musical instruments made by famous European masters. KPO also funded the equipment of an office studio. It has the most modern recording equipment. The orchestra already issues several discs, which were sold worldwide.

Every three years, the consortium changes its management. This time, KPO General Director Paolo Campelli who represented Eni, was replaced by Roger Fox, who has been with BG for almost 25 years. But the social policy remains unchanged. KPO is proud of one more award, which was given for the significant contribution into social reconstruction of the region and support of its sustainable development. This work continues into the future.