OREANDA-NEWS. May 29, 2013. Karachaganak Petroleum Operating B.V. (KPO) has announced the issue of the 2012 Sustainability Report.  The Report focuses on KPO’s performance in 2012 and reflects the company’s commitment to sustainable development.

The 2012 Report has been produced in line with the principles of the Global Reporting Initiative’s G3.0 Guidelines and the requirements of the B+ application level. The accuracy of the data in the Report has been independently verified by Ernst & Young LLP.

KPO General Director, Damiano RATTI, said: “World-class health, safety and environmental practices, robust corporate governance, the best available technologies in operations, and enhanced programmes for nationalisation, local content and social development are the sustainability principles embedded across the Company.”

“KPO is committed to the sustainable future.  Operating as a responsible corporate citizen, KPO works towards achieving a sustained success for the benefit of the Karachaganak Partners and the Republic of Kazakhstan”, added Damiano RATTI.

In 2012, KPO produced 139.5 million barrels of oil equivalent of stabilised and unstabilised liquid hydrocarbons, gas and fuel gas. 8.6 billion cubic meters of sour dry gas were re-injected to maintain reservoir pressure, which is approximately 49% of the total volume of produced gas.

The certification body annually holds surveillance audits in KPO for compliance of HSE Management System to the ISO 14001 and OHSAS 18001 standards. KPO management continuously strives to ensure safe work environment for its employees and urge them to adhere to safety rules in keeping safe. The HSE Card programme introduced in 2011 enables personnel to report hazards, safe or unsafe behaviour observed during work and to offer suggestions and ideas to improve HSE performance. In 2012, the lost time injuries indicator was lower as compared to 2011; nevertheless, zero incidents remain KPO’s firm target

Since 1997, KPO’s investments into environmental activities have exceeded USD 239.4 million. 

KPO fully supports initiatives of the Republic of Kazakhstan regarding transition to “a green economy”.  Last year the gas utilisation rate at Karachaganak totalled 99.87%, which is a world class achievement.

In 2012, the volume of gas flaring was a mere 0.13% of the total volume of gas produced, or 0.78 tonnes per thousand tonnes of extracted raw materials. A comparison of these figures with averages achieved by international and European oil and gas companies demonstrates KPO’s leadership in this area.

As the largest Employer in the region, KPO is fulfilling its obligations for the protection of employees’ health and for the creation of long-term jobs with competitive salaries.

Currently, national personnel of KPO occupy 69 per cent of managerial and 95 per cent of all supervisory and technical positions.  As a result of KPO’s nationalisation programme aimed at substituting expatriate employees with local professionals, today, local specialists make up 93% of total KPO staff.

Overall, since the Final Production Sharing Agreement became effective KPO has put over USD 168 million into training and development of Kazakhstani professionals using international experience, own educational resources, and through cooperation with well-known universities.

In 2012, the proportion of local content in KPO contracts for the supply of goods and services reached 56% or USD 335 million in monetary term.

As the result of this established partnership, a large number of new schools, kindergartens, hospitals, as well as social and community-purpose buildings were constructed in recent years.  Hundreds of kilometres of roads were also laid.  As of today, KPO’s investments into development of WKO social infrastructure have totalled over USD 270 million.

The above listed achievements demonstrate that KPO’s aspiration to leave a sustainable legacy behind is virtually integrated in all facets of the Venture.