ENVIRONMENTAL PROTECTION

Environmental Protection

The Company employs stepped steel constructions with a specific infill material to reinforce the coastline against landslides and avoid contamination of the Caspian Sea. These are referred to as ‘Reno mattresses.’ A protective dam of 8.6 kilometers is being reinforced at the NGDU Zhylyoymunaigas Teren-Uzek and Zapadnaya Prorva mines. The quality of sea water and seabed deposits are monitored annually at seven control stations as part of the industrial environmental control program; the status of sea wells is evaluated weekly; and samples are obtained quarterly and certificates of inspection are provided.

The Company devotes large expenditures each year to reduce the environmental impact of production variables, with approximately KZT 17.2 billion spent in the last three years. The Company conducts annual environmental monitoring of the air, underground/surface water, soil, and radiation using both internal environmental laboratories and independent specialist organizations with appropriately equipped facilities and required permits/licenses.

To analyze the influence on the Caspian Sea environment, flood-prone and flooded wells are monitored. The Company collects radioactive equipment (tubing, scrap with varied diameters, etc.) from field sites for storage at a temporary radioactive waste storage yard every year to eliminate sources of radioactive contamination. To disinfect tubes and equipment, the company has been researching new technology and conducting trial testing.

It is common knowledge that downhole equipment is repaired near wells, resulting in soil pollution. Wellhead areas are being created with sewers at fields, in addition to other steps done to prevent contamination near wells. To eliminate historical contamination, the Company conducts regular efforts to treat, re-cultivate, and repair damaged sites. The most up-to-date methods and technology are being investigated, while acquisition of an environmentally friendly and efficient waste treatment unit, as well as the application of new technologies for reclaiming and restoring oil-contaminated fields, are both underway.