Our Communities

KMG contributes to the social and economic development of the regions of its presence. The Company actively communicates with the local governments and maintains a constant dialogue with key stakeholders, actively works on developing and training young qualified experts, provides social support to the employees of KMG Group of Companies, strives to support domestic manufacturers by signing the off-take contracts. Under the contracts for subsoil use and the Comprehensive Development Plan, KMG’s enterprises finance socially significant facilities, the construction of sports complexes, the social and economic development of the region, etc.

The subsoil use contracts of KMG’s subsidiaries provide for the allocation of significant amounts of money to develop the regions of production presence and provide social assistance to the social groups living in need, as well as on the basis of agreements and memoranda entered into with the regional Akimats, SDEs of KMG transfer funds to the local executive authorities, which distribute the funds based on the needs of local communities. In addition, KMG fulfils its obligations in a timely manner in accordance with the Comprehensive Development Plan of Zhanaozen City. For these purposes, in 2022, the amount exceeding 12 billion tenge has been allocated within KMG Group, including the major portion of the contribution to the development of Atyrau and Mangystau Oblasts, which falls on Kashagan BV, which is a 100 % subsidiary of KMG since 2022, including:

Ozenmunaigas JSC allocated 1,700 million tenge for the development of social infrastructure in Zhanaozen City and Karakiya District;
Embamunaigas JSC allocated 831 million tenge for the construction of schools in Kulsary Town of Zhylyoy District and in Atyrau City;
Kazgermunai JV LLP made allocations in the amount of 149 million tenge for the social and economic development of Kyzylorda Oblast and its infrastructure.
On the basis of the agreement signed with the Akimat of Mangystau Oblast, Karazhanbasmunay JSC transferred 480 million tenge for the social and economic development of the region and its infrastructure.
Kazakhoil Aktobe LLP allocated 169 million tenge for the social and economic development of Aktobe Oblast and its infrastructure, Kazakhturkmunay LLP allocated 46 million tenge and, in addition, in pursuance of the Contract, Kazakhturkmunay LLP transferred 44 million tenge to the Akimat of Mangystau Oblast.
Funded by Kashagan B.V., social projects in the amount exceeding 8 billion tenge were completed in the reporting period – improvement of microdistricts, construction of a student dormitory for 500 people in Aktau City, construction of a 3-storey 60-apartment residential building in Kulsary Town (Atyrau Oblast). Also, in 2022, the projects were launched such as the construction of a family medical outpatient clinic for 50 visitors in Bereke Microdistrict, construction of an additional building for 80 children of the regional children’s rehabilitation centre, construction of a kindergarten for 160 children in Orleu Housing Estate (Taskala-2 Village) of Atyrau City, construction of 3-storey 60-apartment residential buildings in Miyaly Village of Kyzylkogy District, construction of 3-storey 60-apartment residential buildings in Makhambet Village of Makhambet District, construction of 3-storey 60-apartment residential buildings in Akkystau Village of Atyrau Oblast; the construction of the Schoolchildren Palace for children and teenagers in Aktau City, which has begun in 2021, is continuing.

Sponsorship and charity

The Company’s charitable and sponsorship activities are carried out through ‘Samruk-Kazyna Trust’ Social Project Development Fund, which is the Single Charitable Operator of the Group of Companies of Samruk-Kazyna JSC.

The charitable activities of Samruk-Kazyna Trust are aimed at helping people, communities in the social and medical sectors, developing the media and cultural community, developing human potential, strengthening labour relations, interethnic relations, investing in a sustainable development of society, and supporting regional business initiatives.

The portfolio of projects comprises 43 projects out of the budget of 2022 for the total amount of 10.4 billion tenge of which 4 projects have been implemented / are being implemented taking into account the needs of KMG:

Zharylkau PF – the project “Strengthening the material and technical base of secondary schools in Zhanaozen City” in the amount of 168.9 million tenge;
IQanat Educational Fund Public Fund – the project “IQanat-Zharkyn bolashak” in the amount of 253 million tenge;
Bilim Foundation PF – the project “Zharkyn bolashak” in the amount of 292.5 million tenge; and
Facilities Construction Company CF – the project “Construction of sports grounds in Zhanaozen City and Zhetybay Village” in the amount of 1.01 billion tenge.

In 2022, the Management Board of the Fund approved the Rules for planning, considering and preliminarily approving charitable assistance (charitable project) by the organizations being members of the Group of Companies of Samruk-Kazyna JSC, on the basis of which a certain limit on charity is provided for KMG and its subsidiaries, whereby in 2023, KMG develops the Rules for providing charitable assistance to KMG and its subsidiaries and dependent entities.

In 2022, by the resolutions of the Board of Directors of the Fund, the social projects were included in the Charitable Program of Samruk-Kazyna JSC at the expense of:

Ozenmunaigas JSC:

for the construction of the Schoolchildren Palace in Zhanaozen City of Mangystau Oblast with an estimated capacity of 500 children per shift, in the amount of 8,224,545 thousand tenge; and
for the construction of universal sports complexes in Zhanaozen City (with a capacity of 400 visitors per day). The construction of the complexes has begun in 2021 and is in progress. The cost of facilities is 1 billion tenge. The funds are disbursed during 2022 in the amount of 895 million tenge.

Embamunaigas JSC:

for the construction of a correctional office building for 150 disabled children in Zhylyoy District of Atyrau Oblast in the amount of 591,832,863 tenge; and
for the construction of 4 multifunctional sports grounds in Dossor and Makat Villages of Makat District, Mukur Village of Kyzylkogy District, Akkystau Village of Issatay District of Atyrau Oblast, in the total amount not exceeding 706,228,840 tenge.

Also, KMG’s subsidiaries – Embamunaigas JSC, Mangistaumunaigas JSC, Ozenmunaigas JSC, Karazhanbasmunay JSC, Kazakhoil Aktobe LLP, Kazgermunai LLP, Pavlodar Petrochemical Plant LLP, PetroKazakhstan Oil Products LLP, and Ural Oil and Gas LLP – provided charitable assistance to the local communities in Atyrau, Mangystau, Aktobe, Kyzylorda, Turkestan, and Pavlodar Oblasts and West Kazakhstan region and the city of Astana, in the amount of about 2.5 billion tenge.

Communication with contracting organizations and ensuring social and labour rights of employees of contracting organizations

KMG has approved the Regulations on communication with contracting organizations to ensure labour guarantees for their employees (hereinafter – the Regulations).

For the purpose of fulfilment of obligations by the Contracting Organizations in the field of labour relations, 21 SDEs of KMG have introduced the requirements of the Model Regulations into contractual obligations.

100 % of contracting organizations in 21 SDEs are screened for social requirements at the conclusion of a contract. While performing works (rendering services) under the contract, the Contractor undertakes to strictly comply with the requirements of the labour laws of the Republic of Kazakhstan, including those regarding the procedure for concluding employment contracts, requirements for their content and form, admission to work only after the conclusion of an employment contract, the duration of work and working hours, shift work and rotation system of work organization, night work and overtime work, rest of employees, minimum amount of salary and guarantees with regard to remuneration, the procedure and timing of salary payment, as well as providing its employees with appropriate social and living conditions.

Corresponding structural subdivisions (Industrial Relations Groups – IR Services) have been formed in SDEs of KMG. The activities of these subdivisions are aimed at monitoring and control in the field of compliance with labour laws, providing social and living conditions.

In 2022, the IR Services of KMG’s SDEs conducted 179 inspections for compliance with the Regulations by contracting companies. In order to ensure social stability in Mangystau, Atyrau, and Pavlodar Oblasts, since the beginning of 2022, KMG has been working to reduce the salary gap between our SDEs and their contracting organizations. To this end, the following measures have been taken:

salary of employees of contracting organizations is increased;
it is decided to annually index the contractors’ salaries by the inflation rate, by analogy with the salaries of a customer; and
guaranteed social benefits for employees of contracting organizations have been introduced.

The works performed are agreed upon with the Interdepartmental Headquarters in charge of solving problems in Zhanaozen City, Atyrau and Pavlodar Oblasts.

SDEs of KMG in Mangystau Oblast signed 158 additional agreements with contracting organizations providing for these changes and, accordingly, an increase in rates of services. The measures taken to increase salaries cover more than 19 thousand employees. The salaries are increased by about 35-40 % on average. In money equivalent, the value of additional agreements signed amounts to 37.2 billion tenge.

12 additional agreements were signed for Atyrau Oblast (AR). The measures taken to increase salaries cover more than 1.3 thousand employees. The salaries will be increased by 13-76 % on average. In money equivalent, the value of additional agreements signed will amount to 3.5 billion tenge.

29 additional agreements were signed for Pavlodar Oblast (PPCP). The measures taken to increase salaries cover more than 2.4 thousand employees. The salaries are increased by 14-56 % on average. In money equivalent, the value of additional agreements signed amounts to 5.9 billion tenge.

General corporate events

Within KMG Group of Companies, the corporate events are held on an annual basis to consolidate the workforce of KMG Group. In order to promote a healthy lifestyle and improve professional skills, events such as Sports and Athletic Contest and Uzdik maman are held.

In 2022, the Summer Sports and Athletic Contest of KMG was held in Atyrau City with the participation of SDEs of KMG

More than 1,600 people from 33 enterprises participated in the Sports and Athletic Contest, who were divided into groups. The Sports and Athletic Contest was held in two stages: the first qualifying stage in eight groups distributed by SDEs location was held until 18 July 2022. The final part was held in Atyrau City during the period from 8th to 12th of August 2022.

About 400 representatives of subsidiaries and dependent entities participated in the final part.

The competitions were held in the following sports: mini-football, volleyball, basketball, table tennis, tennis, chess, swimming, togyzkumalak, lasso-tartu, and track-and-field athletics.

In the finals of the Sports and Athletic Contest of Samruk-Kazyna JSC, KMG won the super cup of the Contest.

Uzdik maman professional skill contest

In 2022, during the period from the 3^rd to 7^th of October, the Contest was held at Akshabulak and Nuraly fields of Kazgermunai JV LLP with the participation of the representatives of 17 SDEs of KMG in 13 non-professional occupations: operators of oil and gas production, well survey, formation pressure maintenance, oil treatment, processing plants, workover and well service crews, wrench turners, electric and gas welders, electricians, chemical analysis laboratory assistants, compressor unit operators and lathe operators.

The winners of the internal contests of KMG’s subsidiaries, who won the first-place prize, participated in the KMG’s Corporate Contest.

The theoretical part of the Contest was held in the form of online electronic testing. For practical tasks, the Regulations were drawn up, the equipment, tools, and workplaces used were examined and agreed upon by the KMG’s Contest Commission. The practice was evaluated by the jury members, who were selected from among the production personnel being employees of KMG’s enterprises.

The winners were awarded solemnly in the Drama Theatre named after Bekezhanov with the performance of the musical performers of Kyzylorda Oblast.

The winners of the Contest, who took the first places, were awarded with Uzdik maman medals and diplomas. The winners of the first place were invited to the solemn meeting of KMG with the participation of the Chairman of the Management Board of KMG devoted to the Day of the Republic of Kazakhstan. In total, there were more than 230 participants in the event, including 120 contestants.

OUR PEOPLE AND DEVELOPMENT OF THE REGIONS OF PRESENCE