BG And The Republic of Kazakhstan: Joint Efforts Create Serious Investments
BG is one of the leading investors in Kazakhstan. It came to the country in the very beginning of 1990s. At the moment we have three major projects in the country. We have 32.5% of interest in the giant Karachaganak field where Karachaganak Venture operates, 14.29% in North Caspian Project with recently selected Eni’s Agip Caspian Sea bv as the operator of the North Caspian PSA, which includes the Kashagan discovery and 2% in the Caspian Pipeline System where CPC operates.
For the last few years BG has invested about $1 bn in the development of Karachaganak project, exploration activities in the North Caspian and construction of the CPC System.
According to the latest data at the moment there are more than 10,000 people working in Karachaganak Project of which over 85% are local employees and there are about 800 people involved in exploration on the North Caspian Project and among them about 60% are locals.
At the moment our operators are making all possible efforts to train local personnel for more responsible positions and in the nearest future the number of local personnel working on these projects will reach the most favourable proportion for the country.
We are delighted to say that the number of local suppliers of goods and services is also growing. In 2000 Karachaganak venture made purchases from 420 local providers of goods and services comparing with about 218 providers in 1998, meanwhile the amount of money spent for that grew from $59 mln to $528 mln. And we are anticipating that this figure will be even higher in 2001.
We are looking forward to making more and more purchases from Kazakhstani companies and providers of services to comply the agreements in which BG is involved.
In addition to the direct investments BG believes it is vital to be part of and contribute to the local communities in countries where we operate. We seek to make a real and positive difference to community activities by supporting projects, which address country needs.
We do this for the following reasons:
• our sustained commercial success is only possible if the communities we serve are also thriving;
• contributing socially benefits our company’s reputation;
• we want BG to be accepted by the community as the long-term partner of choice.
We focus on giving people skills, so that they can develop a role in their community.
We aim to:
• support the development of Kazakh business through using local products and services because this makes sense both economically and socially;
• support locally based community projects within the areas of local business operations;
• promote the greater involvement of all social segments of the community.
Among all social projects we have the following:
• number of social programs lead by the Karachaganak Project (KPO bv) equals to the amount of $10m each year:
- special infrastructure projects in West Kazakhstan Oblast, include the refurbishment and re-equipment of hospitals, and construction of a new gas distribution system, providing cheaper, more reliable energy;
• number of social programs lead by North Caspian Project (previously OKIOC) equal to the amount of $5m each year:
- in Atyrau and Mangystau Oblasts – development of gas distribution systems, as well as construction of schools and a water boiling system;
• BG Chair of Environmental Technology at AIPET, sponsorship for student of Master’s Program, Almaty;
• sponsorship for several students each year at Strathclyde University in the framework of Chevening program;
• close relationships with School #2 for disabled children, Almaty;
• providing help to the National Library of the RoK in purchasing books and equipment;
• close relations with Special Olympics – charitable organization that works in the sphere of rehabilitation of many people, children and adults with mental and physical disabilities by participation in sports training sessions and athletic competitions;
• BG also sponsors the Wildlife Photographer of the Year Competition and each year the Exhibition is touring in Kazakhstan: Almaty, Astana, Uralsk, Atyrau, Aktau. This year we are planning to bring the exhibition to Kazakhstan again and devote it to the 10th Anniversary of the Independence.
BG is very proud to be a partner of the Republic of Kazakhstan and looking forward to continuing cooperation for the prosperity of all stakeholders.
This material is provided by Leila Kulbaeva, External Affairs Adviser, BG Kazakhstan.
Table of contents
Eurasian Economic Union: a Long Way to Go Nigmatzhan Isingarin
Restructuring and Privatisation of Kazakhstan’s Power Industry: Basic Results and Achievements Kenzhemurat Dukenbayev
Development of Mineral Resources in Kazakhstan: a Five Year History Elvira Jantureyeva
Transfer Pricing in Kazakhstan BILL PAGE
Implementing Subsoil Use Contracts: Contractor’s Obligations and Control over their Fulfillment Olga I. Chentsova
Excess Profits Tax in the Republic of Kazakhstan: Methods and Problems Arising when Calculating Excess Profits Tax Anvar Yaushev
Rights to Land for Foreign Citizens, Persons without Citizenship and Foreign Legal Entities in the Republic of Kazakhstan Yuliya Mitrofanskaya, Saida Akhmetova
Court of Arbitration in Kazakhstan: Opportunities and Prospects Pyotr Greshnikov
