PetroKazakhstan Kumkol Resources AO: Doors Open Day

Last week PetroKazakhstan Kumkol Resources organized a media tour for representatives of a number of national, regional, oblast, and local media around its production and social facilities based in Kyzylorda and South Kazakhstan Oblasts

During the tour the journalists got familiarized with the company production achievements, social programs in the scope of corporate social responsibility.

First point in our itinerary is Kyzylorda City Childcare Center. The orphanage was established in 1920, and now 34 infants of age from one month to four years are being raised here. PKKR sponsors this establishment for 15 years in a row. For example, funding for repair (new doors, windows, and summer playgrounds) was allotted. The company constantly pleases the kids with presents and takes part in children’s matinees. For this time, on the eve of the Children’s Day the PKKR employees presented a minibus to the Childcare Center, as well as sweets and fluffy toys.

As Fang Jiazhong, PKKR CEO, assured us, the company would continue to support the region’s population by its sponsorship projects.

MGulnaz Anasbayaeva, Chief Doctor of the Childcare Center, and Sapar Rakhmensheyev, Deputy Health Administration of the Oblast, thanked the PKKR senior management for such a wonderful present. A minibus is vital for such institution.

Then the presentation on the PKKR activity took place in Arai – Sunrise, the children’s summer recreation camp. Mr. Fang told us about his company’s achievements and plans.

The event was attended by Markhabat Zhayimbetov, the Deputy Oblast Akim. It was noted during the meeting that 736 well are established by the company in its fields, and 495 of them are producing wells. Last year, 16 exploratory and appraisal wells were drilled, overall oil production volume was 6.2M tons, and despite the financial turmoil, PKKR reached its performance goal in this regard.  Over the last three years, the company increased its licensed territories for exploration by eight times. Three promising fields were discovered: Eastern Kumkol, Northern Nuraly, and Kolzhan, which would provide for significant increase in the PKKR’s recoverable reserves. Generally speaking, more field exploration work is done now. Since 2009, over 95 % of the associated gas is being utilized. This year, the company plans to build oil field facilities in the NW Kyzylkiya, expand its group unit in Kumkol, surface the Kyzylorda – Kumkol road section, and modernize its oil fields’ infrastructure.

It is the priority for PKKR to establish safe working conditions, protect its employees and residents of the company production facilities’ area, and to maintain its environment as clean as possible. For this purpose, PKKR developed its labor safety and security management system, which covers all required policies, procedures, and instructions, as well Industrial Safety Declaration for its facilities. Safety trainings are conducted on regular basis; production facilities put into operation in the past two years were attested for proper labor conditions; cold waste storage area reconstruction is completed; and liquid cold waste was completely disposed of.

As far as social projects are concerned, last year a new memorandum of cooperation was signed between the Kyzylorda Oblast Akimat and the PKKR AO for the total amount of KZT 450M. Last year, the company invested extra KZT 161M into social projects’ implementation. PetroKazakhstan continues to support the talented youths. Based on the 2009 contest results, 13 young students were awarded educational grants to study in the Oil and Gas Institute of China and best Kazakhstani universities.

PetroKazakhstan is one of the major taxpayers in the Republic of Kazakhstan. Taxes paid by the PKKR production units constitute most of the Kyzylorda and South Kazkahstan Oblasts’ budgets.

Mr. Zhayimbetov, Deputy Oblast Akim, thanked the PetroKazakhstan management for its significant contribution in the social and economic development of the region.

During the meeting, a new Collective Agreement was signed between the PKKR management and the company’s Trade Union Committee. The new Collective Agreement provides for improvement of labor safety and social working conditions for company’s employees. It is worth noting that PetroKazakhstan always does everything that is needed in this regard.  Now 1730 employees are working in PKKR, and monthly environmental index is being calculated for 1427 employees. Moreover, together with the employees’ vacation over KZT 210M is being allotted annually as support funding for health improvement. Extra payment for hazardous work conditions is provided to 264 employees.  Last year, the company management provided additional material aid (around KZT 7M) to its employees on different grounds: decease of employees, their close relative, road accidents, etc. Moreover, PKKR pays for education of its employees studying at distance learning institutions, the company employees’ kids studying at higher and specialized education institutions also get material aid.

A lot of attention is paid to improvement of accommodation of employees living in the rotational villages. At Aryskum field such village was expanded to accommodate 200 employees more, and at Kyzylkiya – to 50 employees. Since last year, the company rents four modern comfortable Toyota air-conditioned buses to transport its employees to the sites.

PKKR is taking care about healthy lifestyles for its employees, too. Employees and their families residing in the city do sports in the company fitness center. Gyms and playgrounds are available in all rotational villages. PKKR plans to build a new sport facility in one of its fields, as well as greenhouses to raise fruits and vegetables.

Thanks to new Collective Agreement, employees’ labor conditions will only improve.

As noted by Mr. Chen Dayou, Vice President, Public Affairs and Government Relations, one of the company’s social projects is Arai Sunrise recreation camp, fully funded by the company: annually KZT 98M is being allotted to support the camp. Each summer 1080 kids can recreate here, and 40% of them are the company employee’s children.

By the way, the camp already opened its season, and Junior Achievement public foundation representatives continue educating the high-schoolers coming here from all around Kazakhstan in basics of economy and entrepreneurship.  Arai Sunrise has 19 clubs, and teenagers’ choice is arts and crafts. The journalists saw kids attend clubs of bead-plaiting, crochet work, clothes styling, wood-carving, carpet weaving, pottery, syrmak embroidery, painting and other clubs that help kids develop creative powers and taste.

Ride to Kumkol

Next day, journalists visited Kumkol field (200 km from Kyzylorda). The rotational village has many facilities to offer its employees: the club, the gym (where they can work out or play ping pong), pastry shop, billiard room, library, museum, sports ground, where tournaments are being held from time to time. One can even go fishing at a local pond (the fish caught is usually set free back to the water of the same pond, where it is bred).

It is noteworthy that the company employees remember those who established the organization they are working for now, and the bust of Murat Salamatov, who in his time was the CEO of Yuzhneftegas enterprise, is installed in the premises of the rotational village.

Then we had a press conference, and Zhu Fumin, Director, Field Operation, told journalists that the company operated in the fields of Kumkol, Southern Kumkol, Kyzylkiya, Aryskum, and Maibulak. Oil produced in the last three fields is being transported via pipelines and oil carriers to Kumkol. PetroKazakhstan plans to produce oil at Northern Nuraly, Eastern Kumkol, Southern Kyzylkiya, and North-Western Kyzylkiya.

Kumkol has initial water separation plant, gas utilization workshop, gas booster station, complex preparation and oil pumping unit, water injection unit for processing of oil, gas and water, as Mr. Zhu Fumin told us. PKKR is one of the first Kazakhstani companies that implemented gas utilization programs. Kumkol gas via pipelines is delivered to the gas utilization workshop, where gas is being processed in the gas turbine plant to produce electricity. Gas left in the gas turbine plant is being re-injected. Gas utilization units are installed in Aryskum, Kyzylkiya, and Maibulak fields.

The journalists visited the above facilities equipped with modern tools, saw workers produce oil and take measures to protect the subsurface structure. For example, water separated from oil is being re-injected.

As we were told by the company employees, the gas utilization program helps to solve a range of important environmental issues: burning and emission of gas is prevented, oil outflow and surface pollution probability is being reduced, and fire security is being significantly increased. Over the past five years, PetroKazakhstan implemented a number of important projects on collection, transportation and re-injection of associated gas. In general, the PKKR production capacities provide for associated gas utilization by production of electricity, gas re-injection, utilization of gas to supply oil-preparation units. USD 80.2M was invested in the gas utilization project implemented at Kumkol.

For the purpose of field and infrastructure development, a number of projects were implemented, including construction of collector array in the fields, intra-field automobile roads, oil storage reservoirs, and well drilling and completion. Over the past year, PKKR sold over 1.9M tons, 1.24M tons of that amount was sold in the domestic market, and 704,000 tons were exported. Each year, PetroKazakhstan takes part in the program of low-rice diesel fuel supply to agricultural producers during spring and autumn agricultural works.

Our next stop is Baldauren kindergarten in Zhanakorgan District opened nine years ago under sponsorship of PetroKazakhstan Kumkol Resources AO. During all that time the company employees support this institution. Funding was provided to pay salaries to teachers, buy food products, toys, necessary tools, capital overhauls.  Thanks to PKKR, kindergarten’s heating system was completely renovated, and the premises were surrounded by metal fence. Every year, kids going to school get schoolbags full with school items. The company presented GAZel minibus, color television, two video tape recorders, Yamaha synthesizer and music set.

Asan Kozhakov, Director, Strategic Communications, PKKR, greeted the kids with the forthcoming Children’s Day, wishing them and their teachers good health and happiness.

Bekmyrza Yelamanov, Zhanakorgan District Akim, and the kindergarten employees thanked the PetroKazakhstan management for their support, while Baldauren kids performed a show to their guests. That day we have visited sunny Turkestan to see the grand architectural monument, Khodja Akhmet Yassuyi Mausoleum, ancient mosque, oriental bath, gates, and museum. Then, in evening, our group went to Shymkent.

A Book of Good Deeds

On our second day in the South Kazakhstan Oblast, we had a guided tour around PetroKazakhstan Oil Products TOO production facilities – Refinery that is situated near Shymkent. Here we saw the control room, loading racks, reservoirs and other equipment. The facility was built in 1985 and five years ago China National Petroleum Company (CNPC) acquired 100% of the Refinery shares. Considering its favorable geographical location and technical capacities, the Refinery has all that is needed to sell its product both in the domestic and export markets.

Shymkent Refinery rate capacity is 5.25M tons of crude annually.  The Refinery processes oil delivered from the PKKR and other companies, and is in charge of 35% of the total volume of Kazakhstani petroleum product, being one of the three Refineries of the country.

Then Jiang Shi, PKOP Vice President, answered our questions on company operations during the press conference. As of today, the company manufactures several brands of high quality gasoline and diesel fuel, vacuum gasoil, mazut, jet fuel, and LPG.  High quality of PetroKazakhstan products is ensured by modern refining process and high quality of Kumkol oil. Last year, the Refinery processed over four million tons of crude oil.

PKOP is paying a lot of attention to safe and reliable production line, and therefore boasts zero fatality and injuries rates. The company management keeps taking measures to minimize production waste and environmental damage. Last year, the company invested KZT 2.9 billion in the improvement of technical capacities of the production facility and occupational safety. This year, capital overhaul of existing units will start.

PKOP continues its active involvement in the corporate social responsibility projects. Each year, a memorandum of cooperation is being signed between the South Kazakhstan Oblast Akimat and PKOP. This tear, KZT 150M is being allotted by the company to social projects’ implementation. By the way, PKOP is the biggest South Kazakhstan Oblast taxpayer.

As far as HR policy is concerned, it is focused on attraction of local specialists and organizations as a priority, with jobs being created both to residents of the city and neighboring regions. Today, PKOP employs 1310 people plus over one thousand contractor workers. The company trains its employees and sponsors study programs, as Mr. Jiang Shi told journalists.

After the press conference, opening of new canteen was held in the PKOP premises. The company management does everything to make employees comfortable.

Good deeds of PetroKazakhstan AO are highly appreciated in the South Kazakhstan Oblast.  Now annual charitable event “Kazakhstani Women against Poverty” has started there aiming to create jobs for women from large and low-income families. The event was organized by the Women Affairs and Family and Demographic Policy Committee under the auspices of the South Kazakhstan Oblast Akimat and the South Kazakhstan Oblast Center for Women and Children Support. PKKR has also contributed to the event, handing over the sewing equipment to the NGOs of Saryagash, Maktaaral, Suzak Districts of the South Kazakhstan Oblast, as well as to the cities of Kentau and Arys. Using the equipment, the women will be able to start their own sewing businesses.

Mr. Kozhakov, PKKR’s Director Strategic Communications, congratulated women on this event and wished them all the success. The vent participants thanked PetroKazakhstan representatives for their care.

Lots of time will be spent to read the thick book of PKKR’s good deeds, as it contains hundreds of pages listing people and organizations that received aid from the company. It is noteworthy that the company employees are constantly caring about children. For example, we visited kids of Sairam orphanage # 4, who are very lucky as the company is their guardian for 15 years already. Now the institution raises 150 orphan kids aged 7 – 17.

The kids met the PetroKazakhstan employees as their old friends, with ovations. Judging by the solid quality of furniture and ambiance, smiling and smart kids, everything is all right here.

“PetroKazakhstan Kumkol Resources always helps us”, says Khanbibi Abdukadyrova, director of the orphanage, who everyone knows as Big Mama. “The company gave us a bus, computers, furniture, gym equipment, toys, children’s clothes.  It keeps bringing joy in the life of our kids. We are so thankful to PKKR management. Children are our future and it is just great that there are people who care.

For this time, the company presented an expensive video-camcorder to kids, who now have a pretext to start a new club.

“We want your future be bright, your dreams come true, and happiness knock on your door”, said Mr. Kozhakov to kids. “If your dreams come true, you will live up to our hopes, and this what we will be grateful to you for.

The kids pleased the guests with an interesting concert with original song and dances.

The last organization we visited was the Oblast Youth House, where the company employees met teachers and their students.  We realized that PKKR did another good deed here: to keep young girls out of streets, PetroKazakhstan donated three sewing machines last year, and now girls use them to start their business.

Over the cup of tea, we had an informal talk; teachers and students told us about their life, work, and plans. Students want to find a good job, establish stable future, and hope that the company will help them. Well, only too normal and the company already has something in mind about that. As a souvenir of the meeting, generous company representatives gave a color television to the kids.

Generally, the media tour was interesting and informative. The media representatives caught a close-up view of the PKKR production achievement and social projects.  Surely, the company is not going to stop and in the future it is will contribute more to the public good.

/Serik  Bizhanov/