KPO duties and liability

January 24, 2014, Arman Kusainov, specifically for “Vlasti”

“Karachaganak Petroleum Operating B.V.” annually allocates $ 20 million into social projects implementation; these investments have an impact on social reconstruction in the West Kazakhstan. The list and priority of facilities are determined by the oblast authorities with community involvement. Construction of absolutely all social projects of KPO is being conducted by Kazakhstani contractors only, which, in its turn, gives a powerful pulse to the development of small and medium-sized businesses in the region.

At the end of the previous year KPO initiatives were honoured at the National Competition for Social Responsibility “Paryz”, where the company won Silver Paryz Award in the Best Social Project category for the construction of a secondary school for 1200 pupils in Uralsk. It should be noted that at the expense of KPO, kindergartens, schools and hospitals are not just erected in the West Kazakhstan oblast. However, the Company performs their full outfitting with the most modern equipment, furniture, office appliances and teaching aids. The constructed school covers an area of 15 thousand square meters. The building consists of five blocks comprising 48 classrooms, computer and linguistic labs, workshops, a classroom for conducting basic military training, a sports complex, a library, a canteen and a first-aid room. It comprises everything required for high-quality education, including a workshop for conducting arts and crafts, a medical staff room, a library, language labs, a classroom specifically equipped for basic military training, a canteen, and other specialized premises.

“For us, this award is an evidence of high recognition of the Company’s contribution to sustainable development of the region, — said KPO General Director Damiano Ratti when receiving silver ‘Paryz’. — While achieving high performance indicators, the Company aims at ensuring maximum efficiency from the development of the Karachaganak field for the region and country. Successful implementation of social projects was made possible due to our fruitful cooperation and partnership developed with the West Kazakhstan oblast authorities”.

This point of view is shared by Marat Karimov, deputy akim of the region. He said that at the expense of the companies developing the Karachaganak field, 13 medical institutions, 6 gasification facilities, and 17 schools had been built in Preuralye. A complete list of social projects, where KPO acts as a project owner, covers multiple pages. Previously, $ 10 million was committed to social projects annually. Presently, this amount was twice increased.

Since 1998, when investors began their activities at Karachaganak, the total amount of KPO investments into social sector had exceeded $ 565 million, including the construction of the gas pipeline “Karachaganak-Uralsk”, which was commissioned at the end of 2011.

The Company is implementing a number of projects aimed at supporting the local community. Thus, KPO traditionally organizes summer holidays in the “Talap” recreation camp for children from rural areas of Burlin district near the field. Funding of sports development in WKO is a priority. KPO makes a significant contribution to improving its infrastructure. The first large-scale project in this area commissioned in 2001 was the construction of the Ice Rink. It is the largest sport hall in the region with an ice arena of 1800 square meters, a gym and fitness facility, a summer tennis court and a mini football ground. In a relatively short time ice can be covered with a special coating, which allows exhibitions and forums to be held there.

Another high-demanded social project of KPO is a swimming-pool. Since 2005 the only Children and Youth Aquatics Swim School in the region has been functioning here.

Currently, KPO implements the next large-scale project. An indoor tennis court is being built in a new district of the city where residential construction is effectively conducted. “The project provides for four indoor and four outdoor courts, as well as recreation area, basketball, volleyball and children’s playgrounds, landscaping with automatic irrigation system,” — said Zhanibek Galiyev, the KPO social projects manager. This sports complex will also meet the highest standards and will suit for international competitions.

“It is encouraging that the KPO project has been honoured with a high award and acknowledged the best in the country, — said Marat Karimov, the oblast deputy akim. — Moreover, when summing up the results of ‘Paryz’ competition, numerous aspects have been considered, that is, the quality of construction and the level of outfitting. And our cooperation will continue”.

Vlasti Statement:

The Karachaganak oil and gas field in the West Kazakhstan oblast, the development of which is performed by an international consortium “Karachaganak Petroleum Operating B.V.” (KPO) is one of the largest in the world. Today Karachaganak produces 44% of the total amount of recoverable gas in Kazakhstan and more than 14% of liquid hydrocarbons. This is one of the largest international projects in the Republic of Kazakhstan with a total investment amount of over $ 17 billion.