Use of water resources

Ensure availability and sustainable management of water and sanitation for all.

Problem of water supply is very acute in Kazakhstan, and although does not suffer national water supply deficit, serious regional deficit is observed in the country. The industry is on the second place on water withdrawal after the agriculture, and annual increase of water withdrawal is provided by oil and gas extraction and processing industry*. In regions with deficit of fresh water oil and gas extraction can be accompanied by operating, reputation and economic risks, as well as operational and commercial problems in the result of tightening of normative standards, regulating water consumption, and as a consequence, increase of appropriate costs. Taking into account the fact that most subsidiary and dependent entities of KMG perform their activity in regions, where water is valuable and deficit natural resource, correct, timely and overall assessment of water resources utilization is very important for the company.

Activity of companies of KMG Group in terms of water resources utilization is consolidated in corporate center, where integral action of the company on water resources of the company is analyzed. Nowadays single forms of data submission are developed in the KMG, allowing detailed and in-depth assessment both impact of each company of the group on water resources in presence regions, and to extrapolate this impact in the scale of Group of companies. KMG corporate center also analyzes achievements, problems, risks and determines areas for improvement, purposes and tasks for future activity, performs comparative analysis of dynamics and spatial distribution of water consumption. Audits of production facilities are performed annually, visiting treatment and intake facilities of the company. Information on water resources utilization in Group of companies KMG is also analyzed in the context of comparison with various foreign and international companies of oil and gas industry by means of reporting to IOGP and IPIECA associations in accordance with the requirements of these associations (guidance, standards and methods). The company explores possibilities of application and introduction of new practices and water-efficient processes for the purpose of load reduction on water resources.

All companies of the Group strictly observe standards and requirements of water and environmental legislation of the Republic of Kazakhstan for the purpose of environment protection and non-admission of valuable natural objects pollution.

Understanding of importance of issue on sustainable use of water resources is increasing annually both among top management and at management level of structural subdivisions. As a consequence, more and more attention is paid to present aspect: corporate standard on water resources management is developed in Group of companies, functional group for discussion and solution of problems, related to water resources, was created, consisted of different subsidiaries; presentation concerning challenges and prospects in part of water resources utilization and protection in the company will be executed on Labor Protection and Environment Forum for the first time for directors general of the Group’s companies in 2018.

*Economic tools analysis in the area of water and sanitation in the Republic of Kazakhstan / Edited by Doctor of Economics, professor B. K. Yesekina – Astana, 2016 – p. 88

Total amount of withdrawn water by source

Total water withdrawal of Group of companies KMG was 84,5 mln  m3 in 2017, which is on 4 % more, than in 2016 (81,3* mln m3 in 2016). Water withdrawal has increased mainly by areas processing (1,5 mln m3) and transportation (1,9 mln m3) due to increase of number of installations on oil refineries and number of sub-subscribers, which buy water in KTO.

Water withdrawal by business areas

Total volume of water withdrawal by following sources in thousand m3:

Source/year

2014

2015

2016

2017

Surface sources

32,478

31,663

31,707

36,813

Underground sources

20,907

23,006

23,077

22,875

Municipal water supply systems

5,072

2,686

2,656

3,249

Sea

28,168

20,987

20,275

21,369

Waste waters of other enterprises

0**

41

93

87

*In sustainability report for 2016 total volume of water withdrawal was specified as 78 mln m3 and the difference in 3 mln m3 is due to the fact that inappropriate data on water volume, transferred by KTO to companies of the Group KMG during 2016 for recalculation of total water withdrawal inside the company, was submitted (11 mln m3 instead of 8 mln m3).

** This parameter was not controlled in specified year

Water withdrawal by Group of companies KMG broken by sources, mln m3

Waste waters, as part of water withdrawal, are available only on Pavlodar Refinery (87 thousand m3 in 2017) – it accepts wastes of other enterprises on its treatment facilities. Accounting of rain water, collected directly, is not maintained in such companies.

Water resources in the Company are used for following principal needs: production, drinking and household and steam production, water withdrawal for heat power plants (for oil refineries). Part of withdrawn water is transferred to other consumers without utilization, and many operations are associated with technical losses of water during transportation and utilization.

The most water-consuming area is Exploration and Production – 2,13 m3 of water was consumed in 2017 for extraction of 1 ton of RWC. 0,86 m3 of water was consumed for oil refining per 1 ton of processed RWC.

Most part of water (more 80 %), consumed of production needs, was injected for pressure maintenance, remained 20 % is consumed for such production needs as oil refining, hydraulic fracture, well workover, charge of fire-extinguishing system etc. Water transfer to other consumers, performed by KTO, in which jurisdiction is water supply line Astrakhan– Mangyshlak, is on the second place on water consumption.

Water resources utilization by type of operations, thousand m3

Total number of water sources, affected by the water withdrawal of the organization by type:

Main surface sources of water withdrawal for Group of companies KMG are the Caspian Sea (21,4 mln m3), Volga and Kigach rivers (29,4 mln m3), Ural river (5,2 mln m3), Irtysh river (1,9 mln m3) and Pyatimarskiy water reservoir (321 thousand m3). The Caspian Sea and Irtysh River are not listed in the List of water objects of special state significance, approved by the resolution of the Government of the Republic of Kazakhstan on January 21, 2004. Ural River is not listed in this list, however, Agreement on preservation of ecosystem of the basin of trans-border Ural River was signed between the Government of the Republic of Kazakhstan and the Government of the Russian Federation in October 2016 in Astana city, which in its turn is based on the Convention on the Wetlands of International Importance Especially as Wildlife Habitat dated February 2, 1971 and on Convention on protection and utilization of international watercourses and international lakes dated March 17, 1922.

Pyatimarskiy water reservoir with water-surface area 5 000 ha and located on the territory of Pyatimarskiy rural district on Kushum river, was entered to the list of local fishery waters (Resolution of Akimat of the West-Kazakhstani oblast № 176 dated June 16, 2017).

KMG also carries out exploration and production of hydrocarbons on the deposit “Urikhtau” – oil and gas condensate deposit, located in Mugalzharskiy region of Aktyubinskaya oblast. Most part of the deposit is in sands Kokzhide, which is known for fresh water resources.

Sands Kokzhide are the largest underground water deposit on stocks in the West Kazakhstan and unique on quality of fresh water. Rare endemic plants, listed in the Red Book of Kazakhstan, can be met on the territory.

Underground waters Kokzhide are listed in the List of geological, geomorphological and hydrogeological objects of national natural-reserved fund of the republican and international importance (Resolution of the Government of the Republic of Kazakhstan № 1212 dated November 18, 2010).

Total water withdrawal,

thousand m3

Volume of reused water, thousand m3

% of reused water of total water withdrawal

Volume of circulating water,

thousand m3

% of circulating water of total water withdrawal

84,541

4,331

5,12

296,649

351

Companies of the KMG Group reused 4,3 mln m3 of water in 2017. Generally, effluent reuse is applied on oil refineries, where waste water after mechanical and biological cleaning on specialized treatment facilities is removed to receiving vessels (containment ponds), and partially returned to the refinery for further utilization. Such water is used for charge of water circulating systems in installations, and also for charge of fire-extinguishing system, planting watering and other needs. Percent of water reuse on refineries of the KMG is 35 % (of volume of water withdrawal by area Processing).