Our communities

We contribute to the development of the regions of presence and maintain an ongoing dialogue with key stakeholders on all substantive issues.

The allocation of significant funds for the development of the region of production presence is provided for Contracts for subsoil use of the company’s subsidiaries. Companies transfer funds to local executive bodies, which allocate funds, based on the needs of local communities. The company plans to introduce an impact assessment of this activity.

We carry out systematic work on interaction with the population. We provide social assistance to needy strata of the population; contribute to the development of local infrastructure.

Oilfield services companies, located in Mangistauskiy region, may have a potential negative impact on local communities. Due to loss, these companies are taking measures to reduce the number, which could negatively affect the labour market in the region. At the same time, most of the released personnel (about 70 %) can be employed in contract organizations.

Interaction with the public and meetings with local communities on environmental issues is carried out through public hearings on EIA projects before any economic activity, construction or reconstruction and modernization of production facilities. In cooperation with the Orhusskiy Centres, consultative meetings are held with the local community and public organizations.

Annually more than 100 public hearings are held in the Group of companies KMG.

Moreover, KMG supports interaction with all stakeholders to improve the emergency response system, involving local communities in the development of response plans. If production work is carried out in the waters of the Caspian Sea, direct participation and involvement of local communities in the development of plans is carried out only during the compilation of project materials (public hearings). Whole system of emergency response of the forthcoming project is disclosed during the hearings with the participation of population, public organizations and state bodies.

The Akimats of rural and settlement districts (21 districts of South Kazakhstan, Zhambylskaya and Almatinskaya oblasts) conducted explanatory work with land users/owners of land plots, whose land plots are in the protection zone and in zone of minimum distances of the Gas Pipeline (areas A, B, C) with the delivery of notices for the safe operation of the gas pipeline. (2015 – 104 meetings, 2016 –104 meetings, 2017 – 104 meetings).

Regular briefings and meetings of the population are held with the participation of representatives of the local executive bodies, emergency authorities and the Ministry of Internal Affairs for the safe use of gas in everyday life.

The Group provides timely information about the activities, environmental impact and health effects of the organizations of the Group to the public in the media. Weekly summaries/reports on ecology and nature management are published. The local and national media publish articles on the environmental activities of the Group’s enterprises.

In addition, the population has the opportunity to provide feedback through feedback on the company’s official website, hot lines, mail. Public organizations and private individuals have the right to appeal to authorized and judicial bodies in accordance with the procedure established by law.

In the KMG Group, there is no significant negative environmental impact on local communities of production facilities. The impact of production facilities on the environment and public health is within the limits of permissible standards, approved by the authorized bodies in draft emission standards. Emissions, discharges and disposal of waste are carried out on the basis of permits for emissions into the environment.

All production processes are carried out in a safe manner and in compliance with legal requirements.

During the accounting period, one significant (longterm, from 2015 to 2017) litigation in “Asian Gas Pipeline” LLP was noted on land use issue during the construction of “C” line of the Kazakhstan – China main pipeline. The land user did not agree with the proposed amount of compensation. The claims of the Partnership are satisfied. Currently, there is an enforcement proceeding to return the amount, previously charged from the Partnership.

Due to the construction of the Deep Conversion Complex (DCC) on Atyrau Refinery, only 194 real estate objects were transferred to the sanitary protection zone (SPZ) of the plant, 188 of which are subject to resettlement (according to paragraph 5 of Section 5 of the Sanitary Regulations and norms of the Republic of Kazakhstan, approved by the Order of the Minister of National Economy of the Republic of Kazakhstan No. 237 dated March 20, 2015):

  • 133 land plots in regions of village Peretaska and Khimposelok;
  • 3 dormitories (55 apartments) on Z. Cabdolov Street.

The construction project of DCC at the Atyrau refinery is included in the state and sectoral programs: GPIIR 2015–2019, the Republican Industrialization Map 2015–2019. Within its framework, it is planned to increase the production of high-octane gasoline, jet fuel and diesel fuel, depth of oil refining, achievement of standards for motor fuels K4, K5. Construction of new modern processing facilities for the processing of heavy oil residues is required for this.

Currently, the implementation of plan of measures for the resettlement of residents, falling under the territory of the sanitary protection zone of the Atyrau refinery, is being continued. The work on resettlement will be completed in the 1st quarter of 2018.

Case history

JSC “Ozenmunaygaz” annually allocates 900 million KZT to social programs fund for the development of infrastructure in Zhanaozen (700 million KZT) and Karakiyanskiy district (200 million KZT). Thus, 2,700 million KZT was allocated within the period of 2015–2017:

  • Construction, expansion and repair of roads – 1 054 million KZT;
  • Improvement of intradomestic territories – 117 million KZT;
  • Assistance in employment in Zhanaozen, ensuring creation of new jobs – 400 million KZT;
  • Construction of open beach – 263 million KZT;
  • Reconstruction of the tuberculosis hospital – 116 million KZT;
  • Creation of social jobs – 200 million KZT;
  • Acquisition of apartments for low-income workers – 464 million KZT;
  • Acquisition of transport for health care and local police service – 86 million KZT.