Environmental Protective Measures Plan

To achieve the goals set in the area of environment protection, KPO annually develops Environmental Protective Measures Plan (hereinafter as the EPMP).

In accordance with the RoQ Environmental Code regulations, KPO provides the Licensing authority with the EPMP for permit`s validity period to obtain an Environmental Emissions Permit. The Plan’s measures focus on ensuring the environmental safety, improving environmental protection methods and technologies, rational use of natural resources and maintaining compliance with the ISO 14001 and ISO 50001 international standards.

In 2019, KPO performed its operations according to the obtained Environmental Emissions Permits and developed EPMPs as presented in table below. The 2019-2020 Environmental Protective Measures Plans were scheduled according to the validity terms of the permits obtained.

KPO Environmental Protective Measures Plans and Permits issued for 2019-2020

No.

Environmental Protective Measures Plans agreed for 2019

Valid Permits for 2019

Authority Agency issued the permit

1

2019 KPO EPMP for the Karachaganak Field (KOGCF)

Environmental Emissions Permit No. KZ68VCZ00223819 dated 27.12.2018 (effective period: 01.01.2019 — 31.12.2019)

Republican State Enterprise Committee for Environmental Regulation and Control of the RoQ Ministry of Energy

2

2016-2020 KPO EPMP for the KPC-Bolshoi Chagan-Atyrau export condensate pipeline (West Qazaqstan Oblast (WQO)

Environmental Emissions Permit No. KZ68VDD00021755 dated 12.08.2015 (effective period: 01.01.2016 — 31.12.2020)

WQO Akimat, WQO Administration of Natural Resources and Nature Use Control

3

2016-2020 KPO EPMP (Atyrau Oblast)

Environmental Emissions Permit No. KZ87VDD00021510 dated 07.08.2015 (effective period: 01.01.2016 — 31.12.2020)

Atyrau Oblast Akimat, Atyrau Oblast Administration of Natural Resources and Nature Use Control

In 2019, the total actual costs of the environmental measures implemented at the KOGCF amounted to KZT 9.64 bln, i.e. 66% funds spent and 109% scope of work of the activities planned was completed. The 2019 target costs for KOGCF amounted to KZT 14.53 bln. Variance between the 2019 target and actual costs results from the partial expenditure under the ‘Air pollution control’ section (59%), meanwhile 120% of scope of work was completed. Using the up-to-date equipment for well operations the Company managed to reduce air emissions by 11 thous. tonnes instead of expected 8 thous. tonnes though spent less funds than planned.

Results of KPO`s Environmental Protection measures implemented in 2019:

Air emissions

  
  • Use of high pressure separators during the test and clean-up of 11 wells helped reducing the amount of air polluting emissions by 7,986 tonnes versus the expected 6,770 tonnes;
  • Use of high pressure pump for pumping oil at 13 wells helped reduce the amount of air polluting emissions by 402 tonnes from expected 404.3 tonnes;
  • Use of hydrocarbon-based fluid for the reservoir operations (Lamix or Deisel) helped to reduce the amount of air polluting emissions by 722 tonnes from expected 394 tonnes.
 

Land reclamation

  
  • In 2019, 63.3 ha of land disturbed because of well operations and construction activities was reclaimed.
 

Waste and wastewater management

  
  • 849.2 tonnes of municipal and production waste not suitable for recycling, which was 13.3% more compared to 2018 (736.5 tons), was sorted and sent for incineration in General Purpose Incinerator (GPI);
  • The following was sorted and sent for processing and reuse as recyclable materials:
    • 100.3 tonnes of waste paper, which is by 4.6 % more compared to 95.6 tonnes in 2018;
    • 10.8 tonnes of scrap metal, which is by 21% more compared to 8.5 tonnes in 2018;
    • 30.4 tonnes of plastic, which is by 17% more compared to 25.2 tonnes in 2018;
    • 7.5 tonnes of glass waste, which is by 4.6 % less compared to 7.8 tonnes in 2018;
  • In 2019, the total volume of treated liquid waste amounted to 6,207.72 tonnes.
  • In 2019, the transfer of accumulated waste from the Solid Waste and Spent Drilling Mud Site to the Solid Waste Burial Landfill continued. 3,758 tonnes of waste was treated throughout the year.
  • In 2019, 38 545 m3 of treated wastewater was reused for technical needs, most of which used for making drilling muds. This volume amounted to 8.9% of the volume of consumed industrial water from Konchubai gully. Thus, the Company reduces the intake of fresh water for industrial needs.