KMG and its subsidiaries adhere to the principle that the health and safety of employees takes precedence over operational performance. The Company’s health and safety policy is based on the commitment of top management in this area and aims to involve every employee in creating a safety culture. The Company’s management is committed to zero tolerance for accidents and for the use of alcohol, drugs and psychotropic substances and traffic accidents. The Company is committed to complying with both national laws and the requirements of international and national standards. KMG pays particular attention to ensuring a high level of occupational safety according to global standards and best practices.

By the end of 2022, the number of fatalities decreased by 67 % compared to the previous year (from 3 in 2021 to 1 in 2022). The number of people injured in occupational accidents has increased by 12.5 % compared to the previous year (from 32 in 2021 to 36 in 2022). The hours worked for 2022 were 99.97 million man-hours (for 2021, 102.31 million man-hours). The most common types of accidents were: exposure to moving objects, falling objects and road accidents.

In 2022, there was one occupational accident amongst the Company’s employees where one employee died (as a result of a rupture of the Aktau-Zhetybai water pipeline of Water Production and Transportation Administration LLP, Mangystau Oblast).

The number of road accidents increased by 9 % (from 22 in 2021 to 24 in 2022), the number of fires decreased by 83 % (from 6 in 2021 to 1 in 2022).

Lost time injury and fatality accident rates

The Company keeps records within KMG Group and for contractors, contractor data is not included in accident and fatality figures.

Process Safety Management

As part of the implementation of the Corporate Process Safety Management Standard at KMG Group and improvement of the industrial safety culture at KMG SDEs, KMG held workshops at the Corporate Centre and at the premises of major KMG SDEs (Ozenmunaigas JSC, Mangistaumunaigas JSC, Embamunaigas JSC) for CEOs and engineering and technical employees of KMG SDEs responsible for industrial safety issues (128 employees participated in total).

These workshops included awareness-raising on process safety/barrier management based on international oil and gas industry best practice (TCO) and International Association of Oil & Gas Producers (IOGP) recommendations.

In addition, practical examples of preventive barriers to operational safety for each of KMG’s business areas (tailored to their specific operations) were discussed.

In the final part of the workshops, the main tools (ways) to check and assess barriers in KMG SDEs (based on existing methods, programs and practices) were discussed and the roles and responsibilities of KMG and SDEs’ staff in process safety/barrier management were identified.

In 2023, it is planned to continue working in this direction and to start implementing the IOGP Process Safety Fundamentals Recommendations in KMG SDEs.

Transport Safety

Today, the Company has over 5,000 vehicles and special machines, most of which are operated in major cities and towns in heavy urban traffic, which increases the risk of accidents caused by third parties. For example, of 24 accidents occurred in 2022, 15 accidents were caused by other road usrs.

As part of ensuring transport safety, preserving human life and health in the operation and maintenance of vehicles, preventing accidents and reducing the potential risks of injury to Company employees, work is being carried out on a continuous basis to improve transport safety:

• Car front collision simulators (Convincer) have been purchased to raise awareness among the Company’s employees on the need to use seat belts and to reduce injuries in accidents. A practical demonstration of the Convincer enables employees to become aware of the need to use seat-belts.
• In 2022, 1,345 Company employees were trained in defensive driving according to the international standards of RoSPA (The Royal Society for the Prevention of Accidents, a British non-profit organisation founded in 1916 with the aim of saving lives and preventing serious injury).
• Embamunaigas JSC introduced an automated vehicle monitoring system as part of its Travel Management Project. Monitoring is carried out by collecting and processing data from GPS terminals and includes functionality for monitoring geolocation, deviation from route, speed, sudden acceleration and braking, seat belt use, daytime running lights and other indicators.
• Based on the results of the accident analysis, an “Action Plan to Improve Transport Safety” was developed, containing a set of preventive measures aimed at improving the safe operation of vehicles and promoting a safe driving culture within the Company.
• As part of preparations for the autumn-winter period in September 2022, measures for safe traffic during the autumn-winter period have been developed and sent to the SDEs for implementation.
• Transport safety workshops attended by managers and responsible engineers and technicians of the Company’s SDEs were held. The workshops presented an analysis of the immediate and systemic causes of road accidents that have occurred in the Company and contractors, and information on the results of internal and external controls to ensure transport safety at facilities.

Fire safety

In 2022, there was 1 fire without casualties in KMG Group (in 2021, there were 6 fires, of which 2 were major fires with casualties (3 dead and 1 injured) and significant material damage). The damage caused by the fire amounted to KZT 195,000.

The following main systemic causes have been identified as a result of the investigation into the circumstances and causes of fires:

• The fire has been caused by a violation of the rules for the installation and technical operation of electrical equipment.

To prevent and avoid fires and ignitions in KMG Group, the following preventive fire safety measures have been taken:

In 2022, short-term and organisational and technical measures (of continuous implementation) of the Comprehensive Fire Safety Action Plan for 2022–2024 for KMG Group were implemented in SDEs, funds were provided for the implementation of medium- and long-term measures to ensure fire safety.

Guidelines have been sent to SDEs to improve the level of fire protection of facilities.

During the year, fire drills, exercises and training sessions were held in all SDEs, with the participation of representatives of the Ministry of Emergency Situations, the Ministry of Energy, Samruk-Kazyna JSC and other stakeholders. Also, drills were held at the KMG Corporate Centre.

In May 2022, fire safety inspections were carried out at the facilities of 15 SDEs, and recommendations were made to improve the fire safety of production facilities.

In December 2022, regional (Astana, Zhanaozen, Aktau, Atyrau) fire safety workshops attended by 203 employees, including management and engineering personnel were held in SDEs.