SUSTAINABILITY REPORT 2023

Our Communities

KMG contributes to the socio-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 assistance to the employees of KMG Group, strives to support domestic manufacturers by signing the off-take agreements. 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.

Ozenmunaigas JSC allocated KZT 1.7 billion for development of social infrastructure in Zhanaozen city and Karakiya District of Mangystau Region

Embamunaigas JSC allocated KZT 783 million for the construction of a 280-seat kindergarten in Besikti Village, Atyrau Region.

Mangistaumunaigas JSC allocated KZT 140 million to the Akimat of Mangistau Region for social and economic development of the Region.

Karazhanbasmunay JSC allocated KZT 230 million for infrastructure development in Mangistau Region.

Kazgermunai JV LLP allocated KZT 2.3 billion for the construction of Schoolchildren Palace for 350 people in Kyzylorda Region.

Kazakhoil Aktobe LLP allocated KZT 206 million for the social and economic development of Aktobe Region and development of its infrastructure, and Kazakhturkmunai LLP allocated KZT 189 million, and KZT 85 million for the development of Mangistau Region.

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 Samruk-Kazyna Trust projects from the 2023 budget is 46 projects totalling KZT 7.2 billion, of which 4 projects have been implemented, taking into account the needs of KMG:

  • IQanat Educational Fund Public Fund – IQanat-Zharkyn Bolashak project to the amount of KZT 300 million, 50 students of schools in Zhanaozen became holders of educational grants to study at IQanat High School Burabai;
  • Bilim Foundation Public Fund – the Zharkyn Bolashak project to the amount of KZT 378.3 million – 177 students of Zhanaozen became holders of educational grants to study at colleges across the country, 2 graduates of the project were employed;
  • Mangystau Centre for Local Initiatives Public Fund – the Strengthening the Material and Technical Base of the Outpatient Clinic in Akshukur Village, Tupkaragan District, Mangystau Region by purchasing an X-ray machine to the amount of KZT 36.5 million;
  • Twenty one children’s sports grounds were constructed in two settlements of Mangistau Region: in Zhetybai and Zhanaozen for the period of 2022–2023 to the amount of KZT 1 billion.

Also, KMG subsidiaries – Ozenmunaigas JSC, Karazhanbasmunay JSC, Mangistaumunaigas JSC, Kazakhoil Aktobe LLP, Kazgermunai LLP, Pavlodar Oil Chemistry Refinery LLP, PetroKazakhstan Oil Products LLP – provided charitable assistance to various local communities in Atyrau, Mangistau, Aktobe, Kyzylorda, Turkestan, Pavlodar Regions to the amount more than KZT 1.1 billion.

General Corporate Events

KMG Group holds corporate events on an annual basis to consolidate its workforce. Events such as Sports and Athletic Contest and Uzdik Maman are held to promote healthy lifestyle and improve professional skills.

In 2023, the Sports and Athletic Contest among KMG SDEs was held in Aktau. This time the traditional annual event was dedicated to the 60th anniversary of Mangistaumunaigas JSC. Over 500 employees from more than 20 KMG SDEs took part in the competition, which took place from 10 to 14 July 2023. All of them had previously passed the qualifying stage in 8 groups, where about 3,000 employees from more than 30 KMG SDEs took part. Employees played for awards in 11 sports: mini-football, volleyball, football, chess, table tennis, swimming, arm wrestling, togyz-kumalak, arkan tartu, asyk atu, cybersport. Also, from 18 to 20 August 2023, Astana hosted the superfinal of the VIII Sports and Athletic Contest among the employees of the Companies of Samruk-Kazyna Group, dedicated to the 15th anniversary of the Fund. Large-scale competitions were held in 11 sports. 845 participants defended the honour of their companies in individual and team sports. According to the results of the competition, the first place was awarded to KMG. It should be noted that for the second year in a row, the Super Cup of the Sports and Athletic Contest among the Fund’s portfolio companies went to KMG. The slogan “One Team – One Goal!“ reflects the main idea of this event, which helps to strengthen corporate culture and ties within the team, encourages all participants to unite to achieve high results. Most SDEs of KMG Group have created conditions for mass sports activities of employees (rent of gyms, availability of gyms at the fields, etc.), which ensures wide involvement of employees in sports activities. Intra-workshop and inter-workshop sports competitions are held on a regular basis.

Uzdik Maman Professional Contes

The Uzdik Maman Professional Contest is held annually among employees of subsidiaries. In 2023, the Contest was held from 13 to 17 September in Aktau at the production base of Karazhanbasmunai JSC for 17 professions:

  • Oil and Gas Production Operator
  • Oil and Gas Well Diagnostics Operator
  • Formation Pressure Maintenance Operator
  • Oil Treatment Operator
  • WO Crew
  • WL Crew
  • Process Equipment Repairman
  • Electric and Gas Welder
  • Electrician
  • Chemistry Lab Technician
  • Process Unit Operator
  • Compressor Unit Operator
  • Process Pump Operator
  • Turner
  • Car Driver
  • Cementing Unit Operator
  • Instrumentation Fitter

The Contest was held in two stages: the first stage was held at the level of KMG SDEs, in which 2,470 employees of KMG SDE participated. The winners of the first stage in the number of 157 people from 19 KMG SDEs who won first place prizes were admitted to the second stage of the Contest at KMG level. The theoretical part of the Contest was held in the form of online electronic testing organised by Samruk Business Academy, a private institution. In the practical part of the Contest, the contestants competed at the competition sites of Karazhanbas field for each profession. The closing ceremony of the Contest was held at Rixos Water World, the winners of KMG’s Contest were awarded Uzdik Maman medals and diplomas, and a festive concert was held by employees of KMG’s SDEs.

Also, a representative of KazGerMunai JV LLP became a finalist of the Uzdik Maman-2023 Contest of Samruk-Kazyna JSC.

In addition, in 2023, representatives of Pavlodar Oil Chemistry Refinery LLP in the nominations “Process Unit Operator“ and “Compressor Unit Operator”, at the invitation of Gazpromneft, took part in the Best in Profession-2023 Contest held in Omsk at Gazpromneft-Omsk Refinery on 28-30 August 2023. Representatives of various companies took part in the Contest: Gazpromneft-ONPZ JSC, Slavneft-YANOS PJSC, Gazpromneft-MNPZ JSC, NIS, Poliom LLC, ANPZ LLP, SIBUR JSC, etc. The Contest consisted of various tasks: testing on profession, HSE, practical case study on computer simulators, gas hazardous works, first aid, solving practical tasks on profession and fire relay race. Representatives of the teams performed in pairs, but individual points were scored. Despite the lack of experience in this Contest, our representatives showed quite a high level of qualification, losing only slightly to their rivals and taking fourth place in each nomination.

In August 2023, KazTransOil JSC also participated in the International Professional Contest for the title “Best in Profession“ between workers of leading professions of Transneft PJSC, Gomeltransneft Druzhba JSC: Commercial Oil Operator; Pipeliner; Electric And Gas Welder; Chemistry Lab Technician; Process Equipment (Process Unit) Repairman; Instrumentation Fitter; Electrical Equipment Repairman; Oil Pump Station Operator.

Development of Corporate Culture in KMG

In 2023, the Company started work on the renewal and development of corporate culture. The corporate culture was diagnosed using 3 methods: online survey, in-depth interviews with top management, focus group discussions. Based on the results of the screening, the current and target culture profile was determined, employee engagement, commitment to the Company and its values were assessed, and feedback on business process improvement was collected. Based on the obtained data and employees’ feedback, recommendations on corporate culture development and an action plan for 2023–2024 on the transition from the current to the desired culture profile were developed. To establish feedback within the Company, the management met with the employees of the Corporate Centre on the implementation of the strategy and development of the Company’s corporate culture, the work is being done to implement changes in the organisational environment and create favourable working conditions, and to establish internal communications within the Company. A strategic session was held with top management on the implementation of culture, and a series of strategic sessions on the development of the Company’s values was also held. Based on the results, 4 values (safety, efficiency, responsibility, team) were proposed and are being agreed upon by the Company’s management. All these initiatives are aimed at increasing employee involvement in the Company’s issues and efficiency in achieving the strategic goals of KazMunayGas. In 2024, work is planned to broadcast the Company’s values and behavioural models, and a pilot project to develop corporate culture is planned to be implemented in Ozenmunaigas JSC and Embamunaigas JSC.