Annex

INFORMATION ON GRI INDICATORS

Information on indicators GRI 102-18, 102-19, 102-20, 102-21, 102-22, 102-23, 102-24, 102-25, 102-26, 102-27, 102-28, 102-29, 102-30, 102-31, 102-32, 102-33, 102-34, 102-35, 102-36, 102-37, 102-38, 102-39, 201-1, 201-2, 201-3, 201-4 is available in JSC NC “KazMunayGas” 2017 Annual Report by the following link.

Materials utilization by mass and volume

All materials used in production activity of exploration well, as well as their types, mass and volumes are stipulated by technical and working projects and permission for application in accordance with the environmental legislation of the RoK and legislation in the area of civil protection and technical regulation.

Satpayev

Total number of used materials was 3,699.219 including: fuel and lubricant materials – 2,161.329 ton, chemical agents and materials – 1,537.89 ton.

Atyrau refinery

Utilized material including mass or volume

Indicator

Basic materials

Non-renewable materials

Measurement unit

Quantity

1.

Raw materials

Raw materials

+

ton

7,723,647.00

2.

Materials, related to production process

Catalyzers and adsorbers

+

ton

366

 

 

Reagents

+

ton

1163.765

3.

Semi-finished products

Gasoline components: standard catalyzate isomerizate coking gasoline stable gazoline Combined gasoline and diesel fuel hydrotreating unit Diesel fuel components: straight run kerosine-gasoil fraction АТ+АВТ hydrotreated diesel oil mixture 20-SN-003+004

+

 

 

4.

Materials, used for packing

Paper sacks for sulfur prepacking

+

pcs.

43,796.00

Note: there are no renewable materials in Atyrau refinery LLP.

KMTF

Oil:

  • diesel fuel – 7,155.611 ton;
  • gazoline – 24.649 ton;
  • heavy oil – 1,889.529 ton;
  • lubricating materials – 0.857 ton.

Natural gas – 169,336.00 m3.

PKOP

Title

2017

Raw material processing

4,685,631 ton

 

Reagents consumption in 2017

Reagents name

2017

Aluminium sulfate

8,300 kg

Aqueous ammoniaС-100

25,204 kg

Ammopohos

6,350 kg

Demulsificator DISSOLVAN V 3359

4,972 kg

Dichloroethane

854 kg

Corrosion inhibitor DODIGEN-481 С-100

1,823 kg

Corrosion inhibitor DODIGEN 2808

350 kg

Corrosion inhibitor HELAMIN 9012H

9,030 kg

Corrosion inhibitor HELAMIN HS 190H

1,320 kg

Scale inhibitor НОРАМЕР 2200

12,880 kg

Hydrochloric acid (Oct.-March)

21,337 kg

Hydrochloric acid

14,700 kg

Copper sulfate

2,020 kg

Methyldiethanolamine

76,247.7 kg

Technical caustic soda

495,311 kg

Ethylene tetrachloride

89,379 kg

Additive N-methylaniline

6,310,253 kg

Lubricity additiveHiTEC 4140А

14,075 kg

Reagent BIOSPERSE-250

1,275 kg

Ammonium nitrate

6,110 kg

Sodium carbonate

7,156 kg

Regeneration salt С9005 DEPRUST

10,850 kg

Stiffness stabilizer Ameroyal 363

3,758 kg

Ether methyl-tertio-butyl

2,945,032 kg

Pavlodar refinery

Basic materials

Non-renewable materials

Measurement unit

Quantity, 2017

Raw materials

+

ton

4,746,923

Catalyzers and adsorbers

+

ton

117.906

Reagents

+

ton

634.9

Plastic sacks for sulfur packing

+

pcs.

473,740

KazGPZ

727.494 mln m3 of associated-petroleum and natural gas was accepted for finished-product output.

Renewable materials are not used in “KazGPZ” LLP for production of goods.

OMG

Acids – 1,059.969 ton; biocides – 95.346 ton; bactericides – 1,036.228 ton; argilla stabilizers – 2,561.922 ton; corrosion inhibitors – 149.011 ton; gelling agents – 85.4501 ton; surfactant species –714.197 ton.

Processed raw and consumable materials are not used in KMG Group.

Information about produced goods and their composition

Make cities and human settlements inclusive, safe, resilient and sustainable.

Atyrau Refinery

Gasoline AI-80-К2 (TS 38.001165–2014)

№ i/n

Indicator name

Regulatory document

Rate

 

 

TR TS 013/2011

TS 38.001165–2014

Fact, annual average

2

Plumbum mass concentration, mg/dm3, no more

GOST R 51942–2010

5

5

absence

8

Sulphur mass concentration, mg/kg, no more

GOST R 51947-92

500

500

311

12

Benzole volume ratio,%, no more

GOST 29040-91

5

1.79

Gasoline AI-92-К2 (TS 38.001165–2014)

№ i/n

Indicator name

Regulatory document

Rate

 

 

TR TS 013/2011

TS 38.001165–2014

Fact, annual average

2

Plumbum mass concentration, mg/dm3, no more

GOST R 51942–2010

5.00

5.00

absence

8

Sulphur mass concentration, mg/kg, no more

GOST R 52660–2006 (EN ISO 20884:2004)

500

500

106

12

Benzole volume ratio,%, no more

GOST R EN 12177–2008

5

5

2,08

Gasoline AI-95-К2 (TS 38.001165–2014)

№ i/n

Indicator name

Regulatory document

Rate

 

 

TR TS 013/2011

TS 38.001165–2014

Fact, annual average

2

Plumbum mass concentration, mg/dm3, no more

GOST R 51942–2010

5

5

absence

8

Sulphur mass concentration, mg/kg, no more

GOST R 52660–2006 (EN ISO 20884:2004)

500

500

51

12

Benzole volume ratio,%, no more

GOST R EN 12177–2008

5

5

2.15

Gasoline АИ-98-К2 (SUPER-98 leadless) (GOST R 51105-97)

№ i/n

Indicator name

Regulatory document

Rate

Fact, annual average

 

TR TS 013/2011

GOST R 51105-97

 

2

Plumbum mass concentration, mg/dm3, no more

28828-90

5

absence

5

Sulphur mass concentration, mg/kg, no more

GOST R 52660–2006 (EN ISO 20884:2004)

500

500

39

6

Benzole volume ratio,%, no more

GOST 29040-91

5

5

1.36

Diesel fuel ДТ-З-К2 (ДЗЭЧ-0,05-40 environmentally friendly) (TS 38.1011348–2003)

№ i/n

Indicator name

Regulatory document

Rate

Fact, annual average

 

by TR TS 013/2011

by TS 38.1011348–2003

 

6

Sulphur mass concentration: %, no more

GOST R 51947–2002

0.05

0.041

 

Sulphur mass concentration: mg/kg, no more

 

500

410

Pavlodar Refinery

Indicators

Gasoline К2

Gasoline К4

1. Sulphur mass concentration, mg/kg

90

40

2. Benzole volume ratio, %

3.4

0.8

3. Plumbum mass concentration, mg/dm3

absence

absence

Benzol, lead and sulphur content for 2017 by Group of companies KazTransGas:

there are no benzol, plumbum and sulphur in structure of gas, extracted from Amangeldinskaya group of deposits.

Information on addresses of main subsidiaries and dependent entities

Level 1

Interest

Address

KazMunayGas Exploration Production JSC

63 %

Astana, 010000, Kabanbay Street, 17

“KazTransGas”

100 %

Astana, A. Bokey Khan Street, building 12

“KazTransOil” JSC

90 %

Astana, Esil region, Kabanbay batyr Avenue, house 19, block Б

Atyrau Refinery LLP

99.53 %

Atyrau, Kabdolov Street, 1

Pavlodar Refinery LLP

100 %

Pavlodar, Khimkombinatovskaya, 1

“PKOP” LLP

99.43 %

Shymkent, Kapal Batyr 5 km 160011

Environmental indicators

Environmental expenses

Expenses

2014

 

2015

2016

2017

 

 

 

 

mln KZT

mln USD

mln KZT

mln USD

mln KZT

mln USD

mln KZT

mln USD

Expenses related to waste management, emission and discharges clearing, total

10,996.7

61.4

7,661.7

34.6

14,185.8

41.5

15,861.5

49

Waste disposal and processing

4,793.3

26.7

1,858.1

8.4

2,330.6

6.8

4,323.2

13

Emissions and discharges clearing

2,304.9

12.9

2,515.1

11.3

3,778.3

11.0

4,880.3

15

Expenses for development and confirmation of document package on greenhouse gas emissions

450.8

2.5

79.9

0.4

52.6

0.15

33.4

0.1

Depreciation of appropriate equipment, materials and services, required for its operation and technical maintenance, personnel expenses related to appropriate activity

2,430.7

13.6

2,942.9

13.3

7,506.6

22

4,291.9

13

Ecological insurance

238.0

1.3

238.0

1.0

365.5

1.1

99.0

0.3

Expenses for liquidation of environmental damage, including expenses for oil spill response

1,079.1

6.0

27.8

0.1

152.1

0.45

1.3

0.004

Expenses for compensatory measures in the area of environment protection

n/a

n/a

n/a

n/a

n/a

n/a

2,232.2

7

Expenses for prevention of environmental impact and Environmental management, total

1,303.4

7.3

1,354.6

6.1

1,394.7

4.08

3,021.9

9.3

Staff for employees education and training

21.7

0.1

9.7

0.04

246.3

0.7

1,028.6

3.2

External services for environment management system

15.1

0.08

11.2

0.05

7.8

0.02

754.8

2.3

Management systems external certification

24.9

0.1

38.8

0.2

33.5

0.09

 

 

Staff for general activity in the area of Environmental management

5.3

0.03

4.3

0.02

2.1

0.006

11.5

0.04

Research and developments

351.5

1.9

376.1

1.7

263.1

0.76

807.0

2.5

Additional expenses for introduction of cleaner technologies

4.2

0.02

6.5

0.03

0.0

0.0

0

0

Additional expenses for “green procurements”

7.6

0.04

5.1

0.02

6.1

0.01

58.0

0.2

Other expenses, related to environmental management

873.0

4.9

903.0

4.1

835.6

2.5

362.1

1.1

Environmental payments (standard)

 

2014

2015

2016

2017

 

 

 

 

mln KZT

USD

mln KZT

USD

mln KZT

USD

mln KZT

USD

Atmospheric emissions due to APG flame combustion

2,074

11,574,306

3,340

15,063,365

4,325

12,655,820

3,886

11,917,244

Atmospheric emissions (without APG flame combustion)

860

4,779,375

1,087

4,902,359

1,064

3,113,478

1,217

3,733,852

Water pollution

51

284,614

38

171,379

40

117,048

43

131,125

Waste disposal

431

2,405,268

514

2,318,135

412

1,205,595

178

547,228

Environmental payments structure per 2017, mln KZT

Environmental indicators

 

Extraction

Transportation

Processing

 

 

 

 

 

 

 

 

 

2014

2015

2016

2017

2014

2015

2016

2017

2014

2015

2016

2017

Greenhouse gas emissions

 

 

 

 

 

 

 

 

 

 

 

 

Greenhouse gases direct emissions (CO2, mln ton)

2.4

2.9

2.8

2.7

0.8

0.6

0.7

0.7

2.6

2.6

3.1

3.2

Greenhouse emissions intensity (ton CO2 per 1000 ton HCS)

110

120

115

110

181

181

219

221

APG combustion

 

 

 

 

 

 

 

 

 

 

 

 

Flame combustion (mln ton CO2)

0.5

0.7

0.7

0.7

 

 

Number of combusted gas per unit of extracted HCS (ton per 1000 ton of extracted HCS)

9.0

12.0

12.0

11.0

 

 

Flame combustion (mln m3)

0.2

0.3

0.3

0.3

 

 

Power capacity

 

 

 

 

 

 

 

 

 

 

 

 

Energy consumption (mln gigajoule)

41.4

40.7

39.1

33.2

32.3

37.4

42.4

40.2

43.0

Specific consumption of utilities(Gigajoule per ton of extracted HCS)

1.80

1.73

1.62

3.0

2.9

3.0

Pollutant emissions

 

 

 

 

 

 

 

 

 

 

 

 

Sulfur oxides (SOx) (thousand ton SO2)

4.8

7.0

9.0

7.8

0.4

0.3

0.4

0.2

8.7

9.4

7.5

6.8

Nitrogen oxides (NOx) (thousand ton NO2)

3.7

5.5

6.1

6.3

3.3

2.7

3.2

3.5

6.1

5.0

3.5

3.9

Spillages

 

 

 

 

 

 

 

 

 

 

 

 

Illegal tapping – volume (thousand ton)

Illegal tapping – quantity

1

12

14

3

6

Oil spillages – volume (ground) (thousand ton)

4.5

1.6

1.7

Water

 

 

 

 

 

 

 

 

 

 

 

 

Total amount of water withdrawal (mln m3)

49.1

50.6

49.6

49.4

28.6

29.1

29.2

30.9

8.9

10.6

10.7

12.2

Water discharge – volume (mln m3)

0.9

0.8

0.8

1.1

1.2

1.02

1.2

1.4

6.0

6.28

6.8

6.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Wastes

 

 

 

 

 

 

 

 

 

 

 

 

Hazardous (thousand ton)

82

221

195

273

7.3

6.8

8.8

8.9

52

119

38

41.2

Unhazardous (thousand ton)

20

9.1

6.7

2.7

8.1

6.4

6.6

3.4

20

12

11

6.6

Total wastes (thousand ton)

103

230

202

276

15

13

15

12.3

72

132

49

47.8

*among them drilling wastes, ground (thousand ton)

284

353

151

186

* among them drilling wastes, sea (thousand ton)

2.0

2

0

2.05

Levels of environmental sensitivity of natural resources of the Caspian Sea

Level of environmental sensitivity

Definition

1

2

Aquatic vegetation

 

High

For plankton – within the period April–October in shoaling zone with depth 3-5 m

For macrophytes – during the growing season (May–June) in zone of pseudo-littoral and in shoaling zone to depth 4 m with large abundance of species

Medium

For plankton – within the period April–October in zones with depths from 5 m to 9 m.

For macrophytes – July–November in pseudo-littoral and in shoaling zone to depth 4 m with large abundance of species, April–May – in the same zone, but with low concentration of plants

Low

For plankton – March and November in shoaling zone with depths 3-5 m

April–October in zone of pseudo-littoral and in shoaling zone with depth to 3 m

For macrophytes – April–November – in areas of seas with depth 4-9 m

Maximum

For plankton – December–March in areas of seas

For macrophytes – December–March in area of the Caspian Sea

Benthos

 

High

During spring reproduction (May – middle of June) on shallows of the North-East Caspian with depth 3–7 m

Medium

1. On the same areas, than high, but from June to August

2. In the area of the North-East Caspian from August to September

Low

1. During spring reproduction (May – middle of June) in zone of pseudo-littoral (0-2 m) and on shallows (at least 3 m)

2. On the same areas, as at spring, but from October to November

Minimum

December – March in the area of the Caspian

Fish

 

High

For sturgeons: during spring spawning (March 10 – June 30) in the area between Volga and Ural at distance up to 20 km from prominent parts of deltas, on the area between Ural and Emba – to 15 km from coast line.
For herrings (big-eyes and north-Caspian shads, Dolginskaya herrings) – at shallows (1 – 3 m) of the North-East Caspian during spawning and spawn development during the period from March – middle of June.
For ordinary (red eye, soma) – in bays with grass filtration during spawning and spawn development (May – June)

Medium

On the same areas, than high, but for other areas of sea.

In zone of high sensitivity – summer – autumn

Low

On shallow water areas, different from high sensitivity areas, with depth to 7 m within the period from July till November

Minimum

On areas with depth > 7 m, and period from summer to autumn

In the area of the North-East Caspian from December till February

Birds

 

High

For swans and ducks – during nesting and moult (April – July 15) in reed bed

For sandpipers – during nesting (April 1 – July 15) in reed bed

Medium

For swans and ducks – during high sensitivity on areas with less concentration of birds or on areas in dense reed bed during moult completion (July 15 – end of the August).
For sandpipers – during nesting, but on areas with lesser concentration of birds (in rare reed bed)

Low

For swans, ducks and sandpipers – on areas outside nesting area during all periods of stay

Minimum

For swans and ducks – at winter

For other birds – at winter and during the period, different from nesting

Seals

 

High

From October till March – in the waters of the Caspian Sea on island and ice grounds during reproduction and molting with high concentration of animals

Medium

From April till May on island and ice grounds with small concentration of animals

From June till September on sand spits, islands, sand islands, with mass haul-out sites of animals during feeding

Low

The same as medium, but for part of population on border of the area with rare concentration

Minimum

For areas of seas, where individual species can be met

Limits, admissions, standards and methodologies, used in the report

Section “Environmental balance”

GRI 103-1, GRI 103-2 и GRI 103-3, specified in this section, are applied to indicators GRI З01-3, 302-1, 302-3, 302-4, 303-1, 303-2, 303-3, 304-1, 304-2, 304-3, 304-4, 305-1, 305-4, 305-5 305-7, 306-1, 306-2,306-3, 306-4, 306-5, 307-1, 308-1, 308-2, OG4, OG5, OG6, OG7, 403-1, 403-2, 403-3, 403-4. In case of specific character of subject management, GRI 103-1, GRI 103-2 and GRI 103-3 are described in details in appropriate sections.

Environmental expenses

Border KMG Exploration Extraction JSC (“Ozenmunaygas” JSC, “Embamunaygas” JSC, “Karazhambasmunay” JSC, “Kazgermunay” LLP JV, “Kazakh GPP” LLP, “OzenMunayServis” LLP), “Kazakhturkmunay” LLP, “Kazakhoil Aktobe” LLP, “Mangistaumunaygas” JSC, “KazTransOil” JSC, “KazTransGas” JSC, “KazMunayTeniz” LLP MNE, “NMSC “Kazmortransflot” LLP, “Oil Construction Company” LLP, “Oil Services Company” LLP, “Satpayev Operating” LLP, “Urikhtau Operating” LLP, “KMG Systems & Services” LLP, “KazMunayGas – processing and marketing” JSC (“Atyrau refinery” LLP, “Pavlodar refinery” LLP, “PetroKazakhstan Oil Products” LLP, “KMG-Onimderi” LLP, “JV “CaspiBITUM” LLP).

Energy resources use

Borders of this section include 15 SDE, which are subjects of SER (State Energy Register), which reflect energy-consuming enterprises of the Group. Data on consumption of fuel and energy resources etc. is direct consumption, if otherwise is not indicated. Information is disclosed separately by business areas “Oil and gas extraction”, “Oil and gas transport” and “Oil and gas refining”.

“Oil and gas extraction” – “Ozenmunaygas” JSC, “Embamunaygas” JSC, “Kazgermunay” LLP JV, “Kazakh GPP” LLP, “OzenMunayServis” LLP, “Kazakhturkmunay” LLP, “Kazakhoil Aktobe” LLP.

“Oil and gas transport” – “NMSC “Kazmortransflot” LLP, “KazTransGas” JSC, “KazTransOil” JSC.

“Oil and gas refining” – “Atyrau Refinery” LLP, “Pavlodar refinery” LLP, “PetroKazakhstan Oil Products” LLP, “JV “CaspiBITUM” LLP.

Water resources use

Borders: “Kazakhoil Aktobe” LLP, “Kazakhturkmunay” LLP, “Mangistaumunaygas” JSC, “Embamunaygas” JSC, “Ozenmunaygas” LLP, “Kazgermunay” LLP JV, “Karazhambasmunay” JSC, “Kazakh GPP” LLP, “Urikhtau Operating” LLP, KazTransOil” JSC, “KazTransGas” JSC, “NMSC “Kazmortransflot” LLP, “Atyrau Refinery” LLP, “Pavlodar refinery” LLP, “PetroKazakhstan Oil Products” LLP, “JV “CaspiBITUM” LLP, “KMG-Onimderi” LLP, “Satpayev Operating” LLP, “N” Operating company” LLP, “Zhambyl Petroleum” LLP, “OzenMunayServis” LLP, “Oil Construction Company” LLP, “Oil Services Company” LLP – these subsidiaries and dependent entities are main operating assets of the KMG and render sufficient impact on use of water resources of Kazakhstan.

Biodiversity conservation and environmental monitoring

Borders of indicators by biodiversity (except GRI 304-3) over only production activity (internal borders – SDEs, where production activity had happened: Satpayev, Zhambyl, Kansu, Urikhtau, KOA) in environmentally sensitive regions (external borders – local communities, Kazakhstani sector of the Caspian Sea, including Novinskiy state nature reserve, Kenderli-Kayasanskaya conservation area, Ustyurt state nature reserve, state integrated nature reserve of local significance “Kokzhide-Kumzhargan”).

Our contribution to biodiversity conservation

Borders 304-3: SDEs with equity share more 50 %, except “PetroKzakhstan Oil Products” LLP, included in present report.

Our operations at sea

Borders: SDEs with equity share of KMG more 50 %, performing production operations in Kazakhstani sector of the Caspian Sea (internal), sea areas of Kazakhstani sector of the Caspian Sea and local communities (external).

Climate change and air quality

Borders of the section cover following large subsidiaries and dependent entities of the KMG, which are the most important sources of air pollutant emissions: “Kazakhoil Aktobe” LLP, “Kazakhturkmunay” LLP, “Mangistaumunaygas” JSC, “Embamunaygas” JSC, “OzenMunayServis” LLP, “Kazgermunay” LLP JV, “Karazhambasmunay” JSC, “Kazakh GPP” LLP, “Urikhtau Operating” LLP, KazTransOil” JSC, “KazTransGas” JSC, “NMSC “Kazmortransflot” LLP, “Atyrau Refinery” LLP, “Pavlodar refinery” LLP, “PetroKazakhstan Oil Products” LLP, “JV “CaspiBITUM” LLP, “KMG-Onimderi” LLP, “Satpayev Operating” LLP, “N” Operating company” LLP, “Zhambyl Petroleum” LLP.

Associated Petroleum Gas Utilization

The boundaries of the section cover following subsidiaries and dependent entities of KMG, where fifty or more percent of voting shares (equity shares) are directly or indirectly owned by KMG on the right of ownership or trust management, as well as legal entities, which activities is controlled by KMG: “Kazakhoil Aktobe” LLP, “Kazakhturkmunay” LLP, “Mangistaumunaygas” JSC, “Embamunaygas” JSC, “Ozenmunaygas” JSC, “Kazgermunay” JV LLP, “Karazhanbasmunay” JSC.

Information on companies in extraction sector, where processes, related to associated petroleum gas extraction and beneficial use, are occurred, is specified in this section.

Wastes management

Borders: “Kazakhoil Aktobe” LLP, “Kazakhturkmunay” LLP, “Mangistaumunaygas” JSC, “Embamunaygas” JSC, “Ozenmunaygas” LLP, “KazGerMunay” LLP JV, “Karazhambasmunay” JSC, “Kazakh GPP” LLP, “Urikhtau Operating” LLP, KazTransOil” JSC, “KazTransGas” JSC, “NMSC “Kazmortransflot” LLP, “Atyrau Refinery” LLP, “Pavlodar refinery” LLP, “PetroKazakhstan Oil Products” LLP, “JV “CaspiBITUM” LLP, “KMG-Onimderi” LLP, “Satpayev Operating” LLP, “N” Operating company” LLP, “Zhambyl Petroleum” LLP, “Ozenmunayservice” LLP, “Oil Construction Company” LLP, “Oil Services Company” LLP – these subsidiaries and dependent entities are main operating assets of the KMG and render sufficient impact on use of water resources of Kazakhstan.

Plumbum, benzol and sulfur content in fuel

Borders: “Atyrau Refinery” LLP, “Pavlodar refinery” LLP, “PetroKazakhstan Oil Products” LLP, “KMG-Onimderi” LLP, “JV “CASPIBITUM” LLP, “KazTransGas” LLP.

Compliance with environmental requirements

Border of the section cover following large subsidiaries and dependent entities of KMG, where fifty or more percent of voting shares (equity shares) are directly or indirectly owned by KMG on the right of ownership or trust management, as well as legal entities, which activities is controlled by KMG: “Kazakhoil Aktobe” LLP, “Kazakhturkmunay” LLP, “Mangistaumunaygas” JSC, “Embamunaygas” JSC, “Ozenmunaygas” LLP, “Kazgermunay” LLP JV, “Karazhambasmunay” JSC, “Kazakh GPP” LLP, “Urikhtau Operating” LLP, “KazTransOil” JSC, “KazTransGas” JSC, “NMSC “Kazmortransflot” LLP, “Atyrau Refinery” LLP, “Pavlodar refinery” LLP, “PetroKazakhstan Oil Products” LLP, “JV “CaspiBITUM” LLP, “KMG-Onimderi” LLP, “Satpayev Operating” LLP, “N” Operating company” LLP, “Zhambyl Petroleum” LLP.

Indicators of safety and labor protection

Borders: present indicators on safety and labor protection include data of KMG assets with equity share more 50 %, except “PetroKazakhstan Oil Products” LLP, included in present report.

Preparation and training by HSE

Borders: CC JSC NC “KazMunayGas” (Block HSE).

Business area “Exploration, extraction”:

JV “Kazgermunay”, “Kazakhoil Aktobe” LLP, “Kazakhturkmunay” LLP, MNE “KazMunayTeniz” LLP, “Zhambyl Petroleum” LLP, “Mangistaumunaygas” JSC, “N” Operating company” LLP, Urikhtau Operating” LLP, “Satpayev Operating” LLP.

Business area “Transportation”:

“KazTransOil” JSC, CO JSC “KazTransGas”, “Intergas Central Asia” JSC, “KazTransGas Onimderi” LLP, “Amangeldy Gas” LLP, “KazTransGas Aymak” JSC, “Asian pipeline” LLP, Gas pipeline Beineu – Shymkent, “NMSC “Kazmortransflot” LLP, “KMG Systems & Services” LLP.

Business area “Processing and marketing”:

CO “KazMunayGas – processing and marketing” JSC, “Atyrau Refinery” LLP, “Pavlodar refinery” LLP, “PetroKazakhstan Oil Products” LLP, “KMG-Onimderi” LLP, “JV “CASPIBITUM” LLP.

Business area “Service”:

“KazMunayGas-Service” LLP, “Air company “Euro-Asia Air” JSC, “TenizService” LLP, “KMG Security” LLP, “KMG Drilling&Service” LLP, “Oil Construction Company” LLP, “Oil Services Company” LLP, “Oil Transport Corporation”LLP, “Munaytelekom” LLP, “Mangistauenergomunay” LLP, “Research and Development Establishment of production and drilling technologies “KazMunayGas” LLP.

Consumer health and safety

Borders of “KazTransGas Aimak” JSC, “KMG-Onimderi” LLP.

Oil spill prevention

Borders: SDEs, performing production operations on grounds, with equity share more 50 %, except “PetroKazakhstan Oil Products” LLP, listed in present report.

Water resources utilization

Water withdrawal, water consumption and wastewater disposal are analyzed in accordance with the requirements of IOGP and IPIECA reporting. Forms of submission of environmental information, received from SDEs, were developed based on these requirements. Information on measurement methods, metering devices and technological features of water resources utilization in fields and oil refineries is also taken into account besides numerical information.

Pavlodar Refinery buys steam from municipal Heat Power Plant. Condensate return to HPP is about 30 %, accounting of returned condensate is maintained by metering devices. Remaining condensate is accounted by calculation method as part of water withdrawal of Pavlodar Refinery, since 2016. Consequently, direct water withdrawal from natural sources is considered for Atyrau Refinery and PKOP, and withdrawal from municipal water supply systems plus indirect water withdrawal from Irtysh River through municipal HPP without return of condensate and chemically purified water for Pavlodar Refinery.

Company KazTransOil supplies Volgian water to users of dry Atyrauskaya and Mangistauskaya oblasts of Kazakhstan by water conduit Astrakhan – Mangyshlak. More 90 % of withdrawn water KTO transfers to other water users without utilization. KTO transferred 8,1 mln m3 of water to Group of companies KMG in 2017. Consequently, it is not necessary to take into account water, transferred to other KMG companies, in order to get total value of water withdrawal by the whole Group of companies, corresponding to physical phenomenon. Also, amount of actual water withdrawal by Group of companies will not be equal to amount of water withdrawal by business areas.

Following regulatory documents of the RoK are used for monitoring this parameter: codes, decrees, resolutions etc. Environmental measures are carried out by all listed water objects in accordance with the regulatory requirements; permissions for water withdrawal are obtained in the authorized body. Monitoring of air, soil, surface water and atmosphere is carried out on a quarterly basis. Monitoring wells were drilled for monitoring and prevention of groundwater pollution.

Reused waters are volume of waste water, which were cleared (mechanical/biological) and reused for the needs of the enterprise (system charge, watering, washing of transport etc.). They are measured directly by measuring devices (meters).

Recycling waters are hypothetic volume of water in water circulation systems at oil and gas refineries, which passed a certain number of cycles in installation. It is calculated as total volume of run-around system, multiplied by number of cycles, passed by this water over a period of time (in this case, for 2017). In fact, this is a hypothetical amount of water which would be required for operation of all installations at the refinery, if there was no water-circulation system. Therefore, percentage of the recycling water of total water withdrawal is less informative.

Recommended percent of water reuse from total water withdrawal by area Recycling is 35 % for publication in the Report, as it conveys the physical picture of the process more accurately, reflects actual technical capabilities of the Company on treatment and reuse of waste waters.

Section “Social responsibility”

Section covers subsidiaries and dependent entities if the KMG, where fifty and more percent of voting shares (equity shares) directly or indirectly are owned by the KMG on the right of ownership or trust management, as well as legal entities, which activity can be controlled by the KMG.

Abbreviations

NGVRS

NGV refill station

FFS

Fuel filling station

AR

Atyrau Refiner

ANS

Aktaunefteservis Limited liability partnership

JSC

Joint-stock company

HEI

Higher education institution

GMI

The Global Methane Initiative

SDE

Subsidiary dependent entities

RVA

Road vehicle accident

ENU

Gumilyov Eurasian National University

ICA

“Intergas Central Asia” JSC

KazGPZ

“Kazakh gas refining plant” LPP

KazNTU

Kazakh National University named after K. I. Satpayev

KBTU

Kazakh-British Technical University

KIMEP

Kazakhstan Institute of Management, Economics and Strategic Research

KMG

“KazMynayGas NC” JSC

KMT

Limited liability partnership Marine oil company “KazMunayTeniz”

KOA

Joint-stock company “Kazakhoil Aktobe”

CNG

Compressed natural gas

KPI

Key performance indicators

KTO

Joint-stock company “KazTransOil”

OSR

Oil spill response

mln

Million

MMG

Joint-stock company “Mangistaumunaygas”

IFRS

International financial reporting standards

NC

National company

EIA

Environmental Impact Assessment

OMG

“Ozenmunaygas” JSC

UN

United Nations

LPE

Labor protection and environment, industrial and fire safety, environmental protection, emergency prevention

SDR

Sustainable development report

PJSC

Public joint-stock company

PKOP

PetroKazakhstan Oil Products JSC (Shymkent Refinery)

APG

Associated Petroleum Gas

PPCP

Pavlodar Refinery

RoK

The Republic of Kazakhstan

IAS

Internal Audit Service

BD

Board of directors

MM

Mass media

LLP

Limited liability partnership

FER

Fuel and energy resources

RWC

Raw hydrocarbons

WF

Wage fund

ES

Emergency situation

EMG

“Embamunaygas” JSC

FAR

Fatality Accident Rate

GRI

Global Reporting Initiative ( Sustainability Reporting Guidelines)

IAOT

International Association Oil Transportation

IOGP

International Association of Oil and Gas Producers

LTIR

Lost-time Injury Rate

OSRL

Oil Spill Response Limited

Questionnaire of involved stakeholders in 2018

List of external organizations, which representatives took part in questionnaire on relevance assessment for Sustainability development report for 2017:

1

“Research institute “Production and drilling technologies” LLP

2

“Institute of economic research” JSC

3

KAZENERGY Association

4

“Oil and gas information analysis center” JSC

5

PriceWaterhouseCoopers Advisory LLP

6

Renewable energy association of Kazakhstan

7

PI “Youth policy issues administration of Astana city”

8

Federation of Labor Unions of the Republic of Kazakhstan

9

RPE RK “Atameken”

10

ZAO Deloitte&Touche CIS

11

JSC NC “Astana Expo-2017”

12

Karachaganak Petroleum Operating b.v.

13

PI “Department for Architecture and Urban Development of Astana city”

14

Investment committee of the Ministry of Investments and development of the RoK

15

Department of natural resources and environmental control of Atyrauskaya oblast

16

Committee of geology and subsurface use of the Ministry of industry and development of the RoK

17

United Nations Development Programme

18

Kazakhstani environmental management association for sustainable development

19

“KING” JSC

20

Ernst & Young