The Western Kazakhstan Oblast is maintaining its positive development. Karachaganak Petroleum Operating BV is making a significant contribution to the socio-economic transformation of the region. Karachaganak is one of the largest fields in the world in terms of hydrocarbon reserves. The field has reached a record level of production, accounting for about 44% of total recoverable gas in the country, and about 14.5% of total liquid hydrocarbons production.
KPO’s contribution has great significance for the social reconstruction of the Oblast. It is estimated that to date, total investment into local infrastructure exceeds 178 million dollars. Under the Final Production Sharing Agreement, a document governing the relations between investors and Kazakhstan, the main priority is social support. This includes healthcare, education, culture and sport.
“Karachaganak is making a significant contribution to the sustainable development of the city of Aksai, the Burlin District, the Western Kazakhstan Oblast and the Republic of Kazakhstan as a whole,” KPO General Director Damiano Ratti says. “We are proud to note the results of the fruitful relationship with the WKO Authorities, state agencies and local communities”.
Before 2009, KPO annually allocated $10 million for social projects. From 2009, this amount has doubled. Successful completion of the Karachaganak – Uralsk pipeline could be called the most significant successful event of last year. KPO has resolved a longstanding problem in the region. Environmentally friendly fuel is now being sent to a few areas on the left side of the Ural as well as the southern part. Overall, it is being supplied to 76 social sites; and more than two thousand homes. For the countryside, especially in the steppes and in semi-desert regions, natural gas was an old dream. Gasification has also been a good incentive for the development of rural small and medium-sized businesses. This is not to mention that only local companies are being involved in the construction of public facilities.
“While choosing a contractor, we adhere to the principles of supporting local producers and to increasing local content,” says KPO Social Projects Manager Zhanibek Galiyev. “Construction firms are supported by partnerships developed in a spirit of mutual understanding. In all contracts, KPO gives priority to compliance with safety regulations”. “An important fact is that there have been no safety incidents associated with production in our facilities throughout the implementation of social programmes. Quality meeting international standards is an indispensable requirement, which should be observed in the process of design and production. We take care to ensure that high-quality building materials are used, with preference given to RoK producers”.
The education sector is also a main priority. Of nine facilities, four have been completed. The remainder will be put into operation by the first of September and by the end of the year. Investors commit themselves fully to providing equipment, furniture, office equipment and teaching aids. The final stage includes the construction of a 1,200-desk school, situated in the densely populated northeastern part of Uralsk.
“This is the third school we are building with KPO’s financing,” explains the Director of Zhayykselstroy Erdenbek Akhmetov. “The size of the building is 15,000 square metres. It consists of five sections. These hold 48 classes, a conference hall, a sports complex, a library, a dining room, and a medical centre. The school occupies four hectares of land. The day is drawing near when the school will be equipped and will open “turnkey". The first bell will ring on the first of September. We have been cooperating with KPO for over 10 years. They are a very demanding customer, and only qualified professionals are able to meet their requirements”.
The construction of education facilities is also being done in remote rural areas. For example, in the Ak Zhaik District, KPO has funded the construction of two schools – one in the Aksuat Village for 230 students and in the Saykuduk Village - for 198. This is a welcome event for the village residents, especially since the children had been attending a school that was built over half a century ago. “My daughter chose to become a doctor,” says the veteran. “She is currently working at the district hospital. Our family recently celebrated a joyous event. My granddaughter Danagul graduated from high school and received a red diploma with distinction. The new school for children will create better conditions. We hope there will be more high-performers. Our president has said only educated people can build a prosperous Kazakhstan. I and my fellow village residents are grateful for the leadership of Karachaganak, which has given our village such a wonderful gift”.
A long-awaited new home will open in the first of September in a village in the Koneketken Terektinsky District. The construction of a 198 desk school is also well underway. SCF Otdelstroy Ltd now is running 5 shifts to complete this process. Director Valentina Mikhno says, "The distance from the regional centre to the village is more than 150 kilometres, and only a third of the road is covered in asphalt. But all the materials are delivered to the facilities in a timely manner. KPO has strictly controlled schedules, which guarantee complete construction in less than one year. Training will be conducted as per the cabinet system, and physical education classes not only take place in the gym, but also on three special coated floors designed for elementary, middle and high school students”.
“An independent boiling room will guarantee the building will stay warm. The builders are now working with special diligence. Valentine Mikhno believes that for every facility intended for children, construction comes with a high risk. Each new school should also be pleasing to the eye. Otdelstroy intends to do the work on time, and with excellent quality.
All this work is completely congruous with the challenges posed by the president in his address to the people of Kazakhstan. The president pointed as priority achieving quality growth in human capital, and the need to adopt modern techniques and technologies into the learning process. The choice of social facilities needs to be agreed upon with KPO and the akimat as well as the advisory councils of the settlements. The company’s funds have been used to resolve the most pressing problems. An example is the reconstruction of the boiler in the tenth district of Aksai, which is the administrative centre of Karachaganak. A water supply system and an additional water line is being built in the city. The modernisation of public utilities in Aksai was also done with KPO money.
Thanks to close cooperation and dialogue between the local community and investors over the past years, a number of social projects have been completed: rural schools were built, dispensaries were renovated, and equipment for schools and health facilities was purchased. For example, in 2011, KPO came to the akimat of the West Kazakhstan Oblast with a proposal to implement several infrastructure projects in the rural villages in the Burlin District. Proposals were agreed upon with the advisory boards of these districts. Following the talks, US $ 2.5 million in funding was approved for the implementation of these infrastructure projects.
By the 20th anniversary of Independence, the Priurale Village school was rebuilt and opened once again in the Burlin District. Repair on the building, boiler systems, water and heat were completed in just a few months. Also, joint plans were created with the advisory boards to renovate schools in district area schools in the Uspenovka, Dmitrovo and Karachaganak townships. A rural clinic was also opened in the Berezovka Village. In addition, KPO funds procured equipment for houses of culture, education and healthcare institutions. KPO also purchased buses for the six schools in the district.
The increasing number of schools is encouraging. Each year, more and more children come to the area. The Uralsk registrar has long been with too little newlyweds. But soon the situation will change. The Wedding Palace being constructed with the assistance of KPO will become another great landmark of Uralsk. The palace is unique, especially in terms of architectural design. The theme is a wave of beauty and solemnity. Its rounded forms are associated with a wedding ring. The building is five thousand square metres in size. It is indeed a palace. Builders plan to deliver it ahead of schedule -- by the 21st anniversary of Independence. “I know of young people who have postponed marriage, because they are waiting to do it in the new palace,” says Chair of the Umit Uralsk Women's Union Aliya Raimkulova. “And I can understand them. In everyone's life, a wedding is an event that is remembered for a lifetime. And such a great start, in my opinion, should have a good continuation. I need to note that the projects our association has provided for many years in conjunction with KPO, are directly or indirectly aimed at strengthening the family. During the crisis years, KPO funded a course for unemployed women that we organised. Many of those that graduated, have succeeded in business, and can thus assure their families are prosperous.
The list of buildings financed by KPO in the past and this year is extensive. Thermal and electrical networks have been laid from a new gas turbine power station built in the suburbs of Uralsk. The road was repaired in Uralsk in Aksai and the regional centre, along with the construction of tennis courts and a 350-desk kindergarten. A family and medical clinic was set up in the remote Bisenov Village of the Bokeyorda District, a cultural centre in the Sara Homer Village, a music school in the Zhympity Village, and a school in the Ushagash Village. All of these projects are designed to solve the everyday problems of ordinary people in the country, and improve the quality of their lives. This is precisely the goal expressed in President Nursultan Nazarbayev’s address to the people of Kazakhstan.
KPO was the first in the country to publish reports on sustainable development. The consortium is seeking to create safe working conditions, to help people develop, and to live with dignity in a clean and healthy environment. The KPO Sustainability Report is a mirror of the company, which adheres to a policy of a constant weighted balance in its relations with the local community. Its basic principles are: staff - excellent working conditions and professional development, community - effective employment, the state - taxes and transfer of know-how.
