ECONOMIC PERFORMANCE
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
Supporting the KAZAKHSTAN'S Economy
NC KazMunayGas JSC ensures the reliable functioning of the oil and gas sector, supports the regions in which it operates, and implements sustainable development projects. The Company creates long-term economic value for stakeholders through investment activities, stable financial results, tax payments, job creation, social projects, and support for domestic producers.
Development of the Oil and Gas Sector
KMG ensures the stable development of the country’s oil and gas sector, contributing to the growth of energy resource production and refining. In 2024, the Company achieved the following:
Oil and condensate production (+1.3 % compared to 2023)
Oil transportation (+4 %)
Natural and associated gas production (+1 %)
Bitumen production
One of KMG’s strategic areas is the development of petrochemicals, aiming to produce high value-added products. In 2024, polypropylene production at KPI amounted to 249 thousand tonnes, a 37 % increase.
Fiscal Contribution
KMG is one of the largest taxpayers in the country. In 2024, the Company paid KZT 1.08 trillion in taxes, supporting government programs and national economic development.
Information on tax policy and tax payments is available on the Company’s website.
Investment Activity
KMG continues to actively invest in key segments of the oil and gas industry, infrastructure, and sustainable development projects. As of the end of 2024, the value of KMG’s investment portfolio is estimated at KZT 51.3 trillion, with KMG’s share amounting to KZT 19,390 billion. These projects have a multiplier effect on Kazakhstan’s economic development.
The Company also generates returns for its shareholders, a significant portion of which includes the state and citizens of Kazakhstan. Since its IPO, the share price of KMG has increased by 60 %.
See more in the section “Investment Activity”.
Job Creation and Social Support
KMG remains one of the largest employers in the country. The Company employs approximately 50,000 staff, and this number reaches 80,000 when including contractor personnel. Beyond job creation, KMG implements employee social support programs that contribute to professional development and overall well-being. Particular attention is given to developing young professionals by providing training and career growth opportunities.
See more in the section “Human Capital Management”.
Contribution to Regional Development
KMG actively supports the regions where it operates by investing in socially significant facilities and infrastructure. In 2024, KZT 3.7 billion was allocated for regional development and infrastructure support. As part of these efforts, the Company funds the construction of critical regional economic infrastructure, educational and sports institutions, and takes part in local community development.
See more in the section “Our Communities”.
Support for Domestic Producers
KMG promotes the development of Kazakhstani businesses through long-term offtake contracts, ensuring stable demand for local products and supporting import substitution. In 2024, the Company’s subsidiaries and dependent entities signed 137 offtake contracts totaling KZT 58.7 billion.
See more in the section “Supplier Engagement”.
Development of Sustainable Projects
KMG is actively implementing projects in the field of renewable energy sources (RES), supporting Kazakhstan’s transition to a low-carbon economy. Key initiatives include the construction of a 1 GW wind power plant with an energy storage system in the Zhambyl region and a hybrid power plant in the Mangystau region, which will combine electricity generation from renewable sources (wind, solar) and a gas-fired power plant (hereinafter referred to as GPP) with a capacity of 247 MW. These projects will increase the share of clean energy in the country’s energy balance.
See more in the section “Climate Change and Low-Carbon Development”.
KMG is not only the country’s leading oil and gas company, but also a key economic player, contributing to Kazakhstan’s stable and sustained long-term development. Through investments, revenues and tax payments, job creation, and support for social initiatives, the Company contributes to economic growth, improved public welfare, and regional development. At the same time, economic objectives are aligned with environmental and social impacts, ensuring the sustainable development of both the industry and the Kazakhstani economy as a whole.