ENVIRONMENTAL PROTECTION

2204-15

Environmental Protection

The Company uses stepped steel constructions with a particular infill material to protect the coastline from landslides and prevent Caspian Sea contamination. These mattresses go by the name “Reno mattresses.” At the Kazoil Kopa and Zapadnaya Prorva mines, a protective dam 8.6 kilometers long is being strengthened. As part of the industrial environmental control program, the quality of sea water and seabed deposits are yearly monitored at seven control stations; the status of sea wells is evaluated weekly; samples are obtained quarterly; and certificates of inspection are given.

The Company invests heavily each year to lessen the negative effects that production variables have on the environment, spending roughly KZT 17.2 billion over the last three years. The Company uses both internal environmental laboratories and independent specialist organizations with appropriately equipped facilities and necessary permits/licenses to conduct annual environmental monitoring of the air, underground/surface water, soil, and radiation. Flood-prone and flooded wells are observed in order to assess the impact on the Caspian Sea environment. In order to eliminate sources of radioactive contamination, the Company gathers radioactive materials (such as tubing, scrap with various diameters, etc.) from field locations for storage at a temporary radioactive waste storage yard each year. The business has been investigating new technology and performing trial testing to disinfect tubes and equipment.

It is well known that soil pollution occurs when downhole equipment is repaired close to wells. Along with other measures, wellhead areas with sewers are being built at fields to prevent contamination. The Company consistently makes efforts to treat, re-cultivate, and repair damaged sites in an effort to get rid of historical contamination. The acquisition of an efficient and environmentally friendly waste treatment unit as well as the implementation of new technologies for reclaiming and restoring oil-contaminated fields are both currently underway. The most recent techniques and technologies are also being investigated.