The reporting meeting of Chair of Board with the staff upon the results of 10 months of Y2018 was held in «Embamunaygas» JSC (hereinafter ‘‘EMG’’ or ‘Company’)

29 November, 2018

The Company top management, the management team and employees of departments and administrative staff (hereinafter AMS) and production structural divisions (hereinafter PSD or Agency), heads of shops and departments of social policy of each division, leaders of trade unions of PSD and Company participated in the reporting meeting.

Anuar ZHAKSYBEKOV, the Chair of ‘EMG’ Board, expressed his thanks to all Company employees for dedicated service and excellent achievements in sphere of labor protection, having emphasized that for past nine months there was no fatality, no incidents registered.

- That is our common achievement! As I emphasized several times that the industrial indices are not so important for the Company as the fact that each employee back home alive and healthy after work!, - mentioned the Head of ‘EMG’ in his reporting talk.

As reported by the Head of Company for mentioned period in ‘EMG’, the oil was produced in amount of 2 million 398 thousand tons, the plan of oil transfer accomplished in amount of 2 million 371 thousand tons. The production of associated petroleum gas made up 135,96 million m3, which exceeds the planned amount for 1,38 million m3. The expecting completion of plans on production and transfer of oil for Y2018 is within a level of planned indices.

The Head of Company in detail spoke on production indices of each PSD, accomplishment of plans on Capital Construction, automation of technological process, implementation of new projects and technologies, implementation of Program on construction of intrafield vehicle roads, having mentioned the large and well co-ordinated work of all production block of ‘EMG’ and each Agency in particular. The work results of key departments of AMS were viewed in detail, the problems and their solutions were raised and the exactly instruction were given to coordinating leaders on each issue.

- The Company continues implementing the Program on modernization of material-technical base of social infrastructure. New dormitory at Kenbay oil field and two canteens at Kisymbay and S. Balginbayev oil fields were entered into operation in current year. The Company provides the employees with competitive salary and significant benefits package. For 9 months of Y2018 under Collective Agreement, ‘EMG’ had accomplished the commitments before the employees for total amount – about 258 million tenge. It includes the payments on various kind of support of holders of pension for health care to annual labor vacation, one-time payment on the occasion of baby delivery, entering the retirement, payment on pregnancy and baby delivery, medical insurance of employees and members of their families, expenses of parents for kids holidays in health improvement camps and more. The employees have a right individually select where they want to rest ad recover their health. The Company covers the expenses on sanatorium-resort care of employees, - emphasized A. Zhaksybekov in detail on social questions.

Special focus was given to implementation of HR Policy. For 10 months of current year over  4300 employees of the Company passed through training on mandatory training coursed on Safety, 874 engineering employees upgraded their qualifications, 816 local employees (citizens of Emba) passed though training and re-training -, out of them  - 60 employees, due to optimization of non-major professions. The Program on generation of staff reserves and dual education is successfully implemented. From Y2015 through November Y2018, 74 trainees (the students of Atyrau University of Oil and Gas and High College of APEK Petrotechnique) passed industrial education and internship within last program. All trainees were assigned the qualification "3rd grade Operator on well study". 19 students obtained the second specialty "Operator of dehydrating and desalting units" and 20 – on profession "Operator of oil production". 37 students, who obtained the highest marks upon results of testing, were hired to the Company.

220 employees of ‘EMG’ of pre-pension age and having problems with health used the unique program implementing in the Company on early retirement (from 58-years age with payment of monthly allowance in amount of 48-50% from fixed official salary for up to 5 years). The Program is designed for support of employees who devoted lots of years of life to Emba. The Head of Company also emphasized the conditions of labor and executive behavior, having focused, that the most part of disciplinary sanctions were given to employees for failure or improper execution of official powers, negligence, lack of control from part of leaders of middle management, violations in adherence to safety issues.

In accordance with contractual commitments the Company participates in development of Atyrau oblast infrastructure. Annually the monetary means are transferred for this purpose into a budget. In Y2018, over 1,8 billion tenge is transferred for financing of social project.

- As you see, the Company executes the extensive work in all direction and I thank all staff for endeavors in future development of Emba! At the same time I focus that only 2 months are left to the end. We are entrusted with a serious task to achieve a record for our matured fields - 2 895 tons of oil. And I believe that together with our professional and cohesive staff we will successfully obtain with this not simple task, - resumed А. Zhaksybekov.

Corporate movie about values of the Company and the offers of employees were taken within the reporting meeting with staff.

Public relations department

Contacts for media:

Aigul ERTLEUOVA A.Ertleuova@emg.kmgep.kz, tel: 8 (7122) 99-32-09

Reference information:

“Embamunaygas” JSC – affiliated company of the “E&P “KazMunayGas” JSC. Officially, the foundation of “Embamunaygas” JSC start from 1922 -  since the foundation of “Embaneft” trust to develop Dossor and Makat fields. Main activity of the company: geological exploration, development of oil and gas fields, oil and gas production, oil and gas processing. “Embamunaygas” JSC consists of 6 operational structural units in Atyrau and 4 regional units in Atyrau oblast: “Zhaikmunaygas”, “Dossormunaygas”, “Kainarmunaygas”, “Zhylyoimunaygas”, “Embamunayenergo” company and “Equipment technical maintenance and warehouse management”. Company supplies produced oil for export and to internal market. In the internal market, oil is supplied to oil processing plants in Kazakhstan. Export of oil is conducted via two main routes: along Caspian Pipeline Consortium (CPC) and Uzen-Atyrau-Samara (UAS) pipelines. Sales gas sale is performed through the RoK national operator in the sphere of gas and gas supplies – “KazTransGas” JSC. For the last five years, “Embamunaygas” JSC have paid to republican and local budgets around 833 billion of tenge, for the development of regional infrastructure 4,3 billion of tenge were allocated. “Embamunaygas” JSC performs its activity in accordance with the international standards ISO 9001, ISO 14001, OHSAS 18001, ISO 50001.