The creative resource of the region

May 30, 2013, Kazakhstan Pravda by Lyudmila Korina

The oil and gas sector has been and remains one of the most promising sectors of the economy. According to the agreements signed with production companies, they must contribute to the development of the areas in which they operate.

An example of this is the consortium - Karachaganak Petroleum Operating BV, which has been steadily meeting its responsibilities, including for the social reconstruction of the region.

As is well known, big things are seen at a large distance. With the arrival of foreign companies, the Karachaganak production process has been completely modernised. It is estimated that during the duration of the FPSA, more than US $17 billion was invested into the development of the field.

Technologies that are the last word in the oil industry have made it possible to achieve record results. Last year, 44% of the country’s total recoverable gas was produced along with more than 14% of its liquid hydrocarbons.

As the annual report on sustainable development notes, the key principles for KPO’s operations is to ensure industrial safety, occupational health and environment protection, the use of modern corporate governance methods, increase Kazakhstani content, improving training programmes for nationalisation and social support.

Social projects have been implemented ever since 1998. During this time, the regional centre was transformed and has become more beautiful. The people of the Ural are always proud of facilities ordered by the foreign partners. All of these are built with a level of quality meeting international standards.

The region’s history is inextricably linked with social construction for which KPO has invested a total of US $ 270 million. For example, the Kazakh Drama Theatre was the first in the country to be built from the ground up during the independence years.

The restored Ural Ostrovsky Drama Theatre and the Garifolla Kurmangaliyev Oblast Philharmonic have become the city’s greatest landmarks. Pupils at the children's village will always be grateful to the investors. They get a new home, and a new family, even though artificial. What could be more important?

At the Ice Arena, which has approximately a thousand seats, both trainings and national and international competitions are held. The special floor coating makes it possible to hold large exhibitions in the large hall.

KPO has financed the construction of a swimming pool, and a stadium.  It repaired roads and laid pipelines. Each year, it allocates $ 10 million for social projects, and this amount has doubled since 2009. It is also important to note that only Kazakh construction companies are hired with the funds.

“When choosing a contractor, we adhere to the principles of supporting local producers and increasing local content,” says Manager for Social Projects at KPO Zhanibek Galiyev. “With construction firms, we support partnership in a spirit of mutual understanding. All contracts prioritise safety compliance”.

“It significant there have been no accidents associated with the implementation process. An indispensable requirement is international standards level of quality. This should be observed in both design and work. We make sure quality construction materials are used. Notably, preference is given to Kazakhstani companies”.

“In the past year, 13 social and infrastructure projects were implemented successfully. Education is always a priority issue. Last year that could be considered a breakthrough in this regard. Five secondary schools were constructed and repaired for a total of US $ 19.25 million”.

The construction of educational facilities has continued in the current year. Moreover, investors have fully assumed their responsibility for the provision of furniture, office equipment and teaching guides.

The largest school - with 1,200 desks, has opened in Uralsk. It is built in the most densely-populated northeastern part of the oblast centre, which has been called the new town.

“This is the third school we are building using KPO’s funds,” explains Director of Zhaiykselstroy Erdenbek Akhmetov. “The size of the building is 17,000 square metres. It is composed of five blocks, which have 48 classrooms, a conference hall, a sports complex, a library, a dining room and a medical centre.

All conditions are provided for learning and extra-curricular activities. KPO is a very demanding customer and only professionals of the highest caliber can meet their requirements. Therefore, our employees are constantly improving their skills.

The ceremony to open the school was a memorable celebration. It was said it would be a shame to study poorly in such a school. Educators and the parents of the students thanked the oblast leadership, Karachaganak and the construction workers for such a wonderful gift to the children.

Education facilities are constructed in remote rural areas as well. For example, in the Ak Zhaik District, KPO financed the construction of two schools in the Aksuat and Saykuduk villages. Each was built to hold 198 desks. The school in Aksuat has already opened.

This was a long-awaited event for the village residents, because earlier, the children had attended a school that built half a century ago. The new building makes possible the application of modern educational technology. Bolashak LLP performed the construction.

According to Director Kaidar Koschanov, cooperation with KPO was a real school of excellence for his team. As per an order from KPO, the company also built a house of culture in the Sary Omir Village of the Terekty District. Now the firm is participating in a tender for the construction of the Kadyr Myrzaliev House of Creativity in Uralsk.

During the past academic year, a school with 200 desks became the cultural centre for the distant village of Koneketken in the Terekty District, which also built using KPO’s funds. The customer strictly monitored the construction timeline. SKF Otdelstroy LLP completed it in less than a year at an excellent level of quality. The training is conducted here using a cabinet system.

Physical education is not confined to the gym, but is conducted at three different sites with specially-coated floors. They are designed for junior, middle and senior classes. In the winter, an autonomous boiler provides reliable warmth to the building.

The construction of the music school in the town of Chingirlau is continuing and equipment is being replaced at operating schools. In April of this year, kitchens and dining rooms are being re-equipped at rural schools in the villages of Berezovka Uspenovka, Zhanatalap, Zharsuat, Karachaganak, Dimitrova, Priuralne and Bestau. Uralsk is a leader in the country in terms of the number of children enrolled for preschool education.

This work is ongoing. New buildings in Uralsk are being erected, including a 350-desk kindergarten. Finishing work is now taking place at the site. As Business Development Manager of the Building Initiative, Rinat Ishchanov stated, all facilities are being built by KPO’s order with an outstanding level of performance.

But those designed for children require an even greater responsibility. Everything should be pleasing to the eye. The Boloshak people have high hopes the partnership with Karachaganak will continue in the future.

Karachaganak Petroleum Operating BV funded the construction a total of 17 educational institutions in the West Kazakhstan Oblast. Increasing the number of schools and kindergartens has been disconcerting and precise, because more and more children are being born every year.

The Uralsk Registration Office has already become "too small" for newlyweds. As a result, a Celebrations Palace had to be built. Altair LLP worked to build this social facility.  Director Sergei Potichenko spoke of it with undisguised pride.

“The project is unique, because there are no such buildings in Kazakhstan. It is really a palace; beautiful both inside and out. It was not easy to build, because we totally ruled out the use of standard solutions for the design and decoration. But we have enough experience. Therefore, we not only met the deadline, but finished ahead-of-schedule.

KPO coordinates the selection of social projects with the regional akimats and the advisory boards of settlements. Demand is fully consistent with proposals, and the funds are used to solve problems.

It is from such exchanges that the reconstruction of the boiler room in the Tenth Micro-district of Aksai, the administrative centre of the field, was done. Also, a water intake and additional water branch system were constructed.

The modernisation of public utilities was also executed using KPO’s funds. Social reconstruction will continue to be a priority in Aksai and the Burlin District, which is near the field.

A significant contribution is being made to the infrastructure of the oblast centre. Uralskstroyinvest LLP specialises in providing services for the production of building materials, paving roads, and laying railways and pipelines.

“The projects that have been completed in the course of our cooperation with KPO have allowed us to get great experience in the construction of facilities of various levels of difficulty,” explains Director Alexei Bezyanov.  “Thanks to this collaboration, we have been able to significantly improve our skills, in particular in the areas of ​​quality and work safety.

The list of new buildings that were financed by KPO last year is extensive. In 2013, the construction of a tennis complex and a cultural house in the remote Kaldygaity Village of the Karatobe District is continuing.

Designs and specifications for the construction of the Uralsk Football Arena and the Palace of Youth and Students are being prepared. To help the region – it does not only need new facilities and the reconstruction of infrastructure. It is requires broad charity efforts.

“For many years, the Karachaganak investors paid out vouchers for the treatment of the elderly at the Ak Zhaik Sanatorium," says Chairman of the Regional Council of Veterans Myrzagali Mukhambetov.

“With their funding, the children of the Burlin District relax at the Talap camp.  "And, of course, we cannot help but be gladdened by the social changes that are taking place in our province with the active support of KPO.

Karachanak Petroleum Operating BV’s social projects are designed to improve quality-of-life. This purpose was included in president's December message to the people of Kazakhstan.