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Waste management

KMG’s operations inevitably involve the generation of production and consumption waste. The KMG group of companies is developing and implementing measures aimed at improving the waste management system, keeping records of generated and accumulated waste, including waste from contractors, and safely accumulating waste until it is restored or disposed of. In 2022, KMG's expenses for the recovery of generated and accumulated waste totaled KZT 14.37 bln.

The ratio of the amount of recycled waste to the amount of newly generated waste, t/t
The ratio of the amount of recycled waste to the amount of accumulated and newly generated waste, t/t

For the KMG Group of Companies, the total mass of waste in circulation for 2022  amounted to 1132,3 thousand tons, including 1097,3 thousand tons of waste classified as «hazardous» and 34,9 thousand tons «non-hazardous». Newly generated waste amounted to 419,5 thousand tons, 95% of which was disposed of or recycled.

The ratio of the area of contaminated land at the end of the year to the beginning of the year, ha/ha
The ratio of the area of reclaimed land to contaminated land during the year, ha/ha

Generation of Drilling Waste

In 2022, KMG's upstream companies generated 220,3 thousand tons of drilling waste. All drilling waste generated by the KMG Group’s upstream companies is transferred for disposal to specialized organizations. The methods of further waste disposal used by these companies include inertization, thermal method, chemical method, and biological remediation.

Elimination of historical pollution and treatment of oil-contaminated areas

The urgent task facing KMG today is the elimination of historical solid pollution and the cleaning of oil-contaminated areas. Studies has been carried out to take stock of historical pollution sites with the development of plans to address all types of historical pollution considering the profile of specific fields, regions, and climates. Also on August 6, 2019, the Ministry of Ecology, Geology and Natural Resources of the Republic of Kazakhstan and KMG signed a Memorandum on Environmental Protection Management, to support the disposal/recycling of oil waste at unorganized sludge and the cleanup of oil-contaminated lands in the Mangistau region. A working group in the organizations of the KMG group of companies was created to strengthen control and efficient organization of work on the elimination of oil waste and cleanup of oil-contaminated lands. On the basis of the inventories made, relevant oil-contaminated land reclamation projects have been developed and agreed upon with the state authorities, safe and efficient oil-contaminated waste disposal technologies have been selected and recommended within the projects, oil waste disposal facilities have been built, and relevant permits and licenses have been obtained.

In addition, although EMG and KBM are not included in the extent of obligations under the Memorandum, there is also work to remediate historical contamination, these companies have completed work in 2022 to clean up historical oil contaminated land within the contract areas. In 2022, 693.7 thousand tons of historical waste were disposed of at the facilities of KMG SDEs and the places of their disposal were reclaimed.

It is important to note that when choosing waste recovery methods, priority is given to modern waste recovery technologies, including technologies without secondary environmental pollution.

Closing and reclamation of work areas

Under the terms of certain contracts, and following the laws and regulations, KMG has legal obligations to dismantle and liquidate fixed assets and restore land at each of the fields. In particular, KMG's obligations include the gradual closure of all non-productive wells and definitive shutdown actions, such as the dismantling of pipelines, buildings and reclamation of the contract area, as well as decommissioning and environmental pollution obligations at the production site. The Company calculates asset retirement obligations separately for each contract. As of 31 December 2022, commitments to liquidate oil and gas assets amounted to 88,163 million tenge (as of 31 December 2021, it was 67 million tenge). The processes of reclamation and liquidation of contract areas are regulated by the Code of the Republic of Kazakhstan dated December 27, 2017 No. 125-VI «On Subsoil and Subsoil Use». According to the Code of the Republic of Kazakhstan «On Subsoil and Subsoil Use»:
- The liquidation of the consequences of subsoil use is carried out in accordance with the approved subsoil user who received positive conclusions of expert examinations of the project for the liquidation of the consequences of subsoil use provided for by this Code and other laws of the Republic of Kazakhstan
- Conservation of a subsoil plot is carried out in accordance with an approved subsoil user who received positive conclusions of expert examinations of the project for the conservation of a subsoil plot provided for by this Code and other laws of the Republic of Kazakhstan.
- Technological facilities are liquidated or conservated in accordance with an approved subsoil user who has received positive conclusions provided for by this Code and other laws of the Republic of Kazakhstan, and examinations of the project for the liquidation or conservation of technological facilities, except for certain categories of wells provided for in the rules for conservation and liquidation during the exploration and production of hydrocarbons, approved by the authorized body in the field of hydrocarbons, the liquidation or conservation of which is carried out in accordance with the liquidation and conservation plan.
The requirements for the works on the liquidation of wells are established in the rules for conservation and liquidation when hydrocarbons prospecting and production and uranium mining, approved by Order from the Minister of Energy of the Republic of Kazakhstan dated May 22, 2018 No. 200. It is registered with the Ministry of Justice of the Republic of Kazakhstan on June 19, 2018 No. (Chapter 4. Liquidation of oil, gas and injection wells of different purpose when hydrocarbons prospecting and production).

Oil trunk lines

In accordance with the Law of the Republic of Kazakhstan «On the Trunk Pipeline», dated July 4, 2012, «KazTransOil» JSC has a legal obligation to liquidate the truck pipeline after the end of the operation and the subsequent implementation of measures to restore the environment, including land reclamation. The provision for the obligation to decommission pipelines and land reclamation is estimated based on the cost of dismantling and reclamation works calculated by KMG. As of 31 December 2022, the carrying amounted to 40.6 million tenge (as of December 31, 2021: 34.5 million tenge).