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 2021, KMG's expenses for the recovery of generated and accumulated waste totaled KZT 12.9 bln.
63% of waste is recovered by biological methods, 16% of waste is recovered by thermal methods, and other significant ways of waste management include recycling, disposal at a landfill, and reuse; all waste is recovered with the involvement of specialized organizations on a contract basis. For the KMG Group of Companies, the total mass of waste in circulation for 2021 amounted to 1,032.0 thousand tons, including 964.2 thousand tons of waste classified as «hazardous» and 67.8 thousand tons «non-hazardous». Newly generated waste amounted to 413.1 thousand tons, 93% of which was disposed of or recycled.
Generation of Drilling Waste
In 2021, KMG's upstream companies generated 158.6 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.
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. Based on the conducted work, relevant projects for the reclamation of oil-contaminated lands were developed and agreed upon with the State authorities, and within these projects, safe and effective technologies for the disposal of oil waste were selected and recommended, and schedules were drawn up for the reclamation of oil-contaminated lands through 2024.
In the period 2019-2021, the volume of recovered oil waste amounted to 1.4 million tons, including 1 million tons under the Memorandum. MMG, OMG, and KBM plan to complete all clean-up of historical pollution by the end of 2024, EMG and KTM plan to complete clean-up of historical oil-contaminated lands within the contract areas by the end of 2022. KTO reclaimed historically polluted lands in sections 984–985 km of the main oil pipeline Uzen-Atyrau-Samara with an area of 48 hectares.
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.
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 2021, commitments to liquidate oil and gas assets amounted to 63 billion tenge (as of 31 December 2020, it was 65 billion 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.
Trunk (Main) oil pipelines
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 2021, the carrying amount of the KMG Group's provision for the obligation to decommission pipelines and reclamation of the Company's land was KZT 35 billion (as of 31 December 2020: KZT 114 billion).