Use of water resources

Water is integral to all KGM processes. In its operations, the Company endeavours to reduce water consumption, increase the efficient use of water resources, build up water reuse and recycling, improve the quality of waste water and minimise the impact on natural water bodies.

The KGM Group’s water use activities are consolidated in the Corporate Centre, where the Company’s overall impact on the country’s water resources is analysed. The Corporate Centre also analyses achievements, problems, risks and identifies areas for improvement, objectives and tasks for further activities, performs a benchmarking of the water consumption dynamics and spacing.

In 2018, the Company adopted the corporate water resources management standard (hereinafter − the Standard) that will be gradually introduced in the Group during subsequent years. The Standard sets out KMG’s key water use principles − 8 Water Principles, systematises the water management approach of KMG’s subsidiaries and associated companies as well as helps increase the commitment of the Company’s managers and employees to saving fresh water.

The specific coefficient of water consumption for "Downstream" direction in 2019 amounted to - 2.27 m3 of water per 1,000 tons of oil produced.

The specific coefficient of water consumption for " Upstream " direction in 2019 amounted to 1.03 m3 of water per 1,000 tons of refined oil.

KMG is a vertically integrated company, which engaged in the production, transportation and processing of hydrocarbons. All processes require the use of a significant amount of water. Therefore, almost 90 million m3 of water is consumed annually for production process in the desert. KMG takes water from surface, underground sources, municipal water supply systems and the Caspian Sea.

The main receiver (and end point) of KMG enterprises is various specialized receivers: storage ponds, evaporation fields and filtration fields. These facilities are technical facilities designed for natural wastewater treatment and prevention of environmental pollution. Enterprises that do not have their own drives transfer wastewater for cleaning and disposal to specialized companies. Quality standards for discharged water, established by environmental legislation, are achieved through the use of mechanical and biological methods of wastewater treatment.

However, wastewater is not discharged into natural surface water bodies. Also, the RoK legislation prohibits the discharge of wastewater into natural surface water bodies.

Re-treated water is reused for washing vehicles, dust suppression and replenishment of fire systems. A significant amount of treated wastewater is used for the second time at refineries, where in 2019 3.2  million m 3 of treated wastewater was reused (in 2018 4.1 million m 3), mainly this water is used to feed recycled water supply units. The percentage of water reuse at KMG’s plants is 19 %.

For the first time, the data on water resources management at the end of 2019 was published on the CDP platform as part of the Water Safety Questionnaire.

Projects are being implemented aimed at reducing discharges and reducing water intake from natural sources.

Details of water use in KMG and the projects being implemented are available on pp. 68-72 of the Sustainable Development Report 2019.

And also in the CDP Water Security Questionnaire: Water Safety Questionnaire