Industrial safety, labor protection and ecology

The preservation of the life and health of people working at the Company’s facilities, the safety of the population living in the regions of its activity, the protection of the environment and society from industrial safety risks are a priority for Exploration and Production QazaqGaz LLP when carrying out production activities.

Such principles dictate the need for the formation and continuous improvement of management methods and corporate culture of the Company: the definition of strategic priorities, effective policies, key performance indicators in this area and the implementation of appropriate measures in the field of industrial safety and labor protection (IS and LP) for their implementation, including issues of health protection, safe operation of vehicles, fire, radiation and fountain safety, integrity of production facilities, prevention of explosive and fire-hazardous and emergency situations and response to them.

The management of IS and LT in Exploration and Production QazaqGaz LLP is carried out within the framework of an Integrated Industrial Safety, Labor Protection and Environmental Management System, which is part of the Company’s overall management system, and is determined by the adopted Policy in the field of IS, LP and EP. The main methods of implementing the Policy provisions and achieving the set goals are compliance with the requirements of the legislation; identification of hazards and management of relevant risks; as well as identifying and effectively using all available opportunities to further improve results in this area. Within the framework of the Policy, a systematic approach is being implemented to meet the requirements of occupational safety, industrial safety and environmental protection, reliability of operations, safe operation of vehicles, fire safety, consisting in the development and implementation of a number of internal standards, regulations, methodological guidelines, both regulated by national legislation and in the form of additional voluntary commitments, and successfully applied in order to further reduce the level of injuries and accidents, improve the results in the field of IS, LP and EP in general and continuous improvement.

LABOR PROTECTION

The main task in the field of labor protection (LP), as a system for preserving the life and health of employees in the course of their work, Exploration and Production QazaqGaz LLP sees in ensuring safe working conditions.

This task is implemented by the Company through the priority implementation of state regulatory requirements for occupational safety, taking into account the specifics of the oil and gas industry, the scale and characteristics of the operating environment of its activities, the achievements of modern science, interstate and national standards; as well as voluntary additional obligations and procedures. For example, in the process of hazard identification and risk management in LP as one of the main methods of achieving goals in this area, in accordance with the ISO 45001 standard, the results of a special assessment of working conditions are used, which is mandatory carried out in accordance with the requirements of labor legislation.

The systematic approach applied in the Company to ensuring LP is a unity of:

a) organizational management structures and established responsibilities of officials and workers of working professions;

b) implemented procedures and the order of their functioning, including planning, organization and implementation of measures to further improve working conditions;

c) establishing (laws, other regulatory legal acts, local regulations, instructions, action plans, etc.) and fixing (registration logs, acts, reports on the work done, etc.) documented information.

The labor protection requirements established by the legislation and internal regulatory documents of the Company are brought in accordance with the established procedure and are mandatory for all employees of Exploration and Production QazaqGaz LLP, in all buildings and structures of the Company, as well as in other established cases.

To achieve the Company’s long-term goals of ensuring safe working conditions for employees, the Company develops and implements various targeted and motivating programs, for example, the “Program of incentives and Consequences management of Exploration and Production QazaqGaz LLP in the field of occupational safety and health “7 Golden Rules”, “9 Vital Rules”, Rules of behavioral audit security and others.

INDUSTRIAL SAFETY

The activities of Exploration and Production QazaqGaz LLP in the field of industrial safety (IS) are aimed at reducing the risks of accidents, equipment failures, eliminating accidents at work, forming a culture of safe production among the Company’s employees and intolerance to violations in the field of industrial safety.

These goals are the basis of the integrated management system functioning in the Company, which is a complex of interrelated organizational and technical measures for the prevention of accidents and incidents at the OPO, localization and elimination of the consequences of such accidents.

The main purpose of this system is to implement the Company’s adopted Policy provisions and objectives in the field of IS by, including:

• licensing of production activities

• development (modification) of PB declarations, examination of IS declarations;

• civil liability insurance during the operation of the OPO

• elimination of violations according to the instructions of the authorized body;

• conducting an examination of the PB of buildings and structures;

• certification of personnel in the field of IS.

• identification and analysis of the risks of accidents at the OPO; planning and implementation of preventive measures to reduce them, including opportunities (including when performing work/provision of services by third parties, organizations), as well as their timely adjustment in case of changes (so-called change management);

• implementation of production control (PC) for compliance with the requirements of the IS;

• ensuring the safe use of technical devices at the OPO by technical diagnostics and expertise of IS technical devices and equipment;

• development and implementation of targeted programs of IS activities.

FIRE SAFETY

Exploration and Production QazaqGaz LLP conducts systematic work to ensure fire safety at production facilities. The Company has created and operates a unified Fire Safety System, the purpose of which is to prevent fires, ensure the safety of people, protect property in case of fire, and exclude damage from fires to third parties. The fire accounting system allows timely identification of deficiencies in the organization of the Company’s work to ensure fire safety and develop the necessary corrective measures.

The Company implements targeted specialized programs to improve the material and technical base and the business process of ensuring fire protection of facilities.

Work is being carried out to ensure the fire safety of residential premises at the production facilities of the Company and contractors (residential wagon houses, cabins in shift settlements, etc.). At the same time, monitoring of ensuring an appropriate level of fire safety at these facilities continues on an ongoing basis.

Every year, the Company’s enterprises conduct more than 34 training sessions, command and staff training, fire and tactical training and PLA testing.

ENVIRONMENTAL PROTECTION

Taking care of the environment is an integral part of the corporate culture and social responsibility of Exploration and Production QazaqGaz LLP. The Company sees its main task in the field of environmental protection in the effective management and minimization of the impact of its production activities on the environment, and its preservation for the benefit of present and future generations.

The Company regularly carries out large-scale work to ensure environmental safety.

The main priority of the Company in the field of environmental management is to reduce the negative impact on the environment, observing the requirements of natural legislation in the exploration, development, development of gas fields, gas and gas condensate production on the contract territory of the Company.

In order to achieve the best indicators and strategic goals in the field of environmental protection, the Company, within the framework of a functioning Integrated Management system for industrial safety, labor protection and the environment, implements the provisions of the adopted Policy in the field of environmental Protection, constantly improves approaches to environmental management, increases the scale of environmental measures and the necessary investments in environmental protection, striving to fulfill the following obligations:

• comply with the requirements of environmental legislation, current regulatory legal acts of the Republic of Kazakhstan, international, national, industry standards and internal documents of the Company,

• conducting continuous monitoring and control of compliance with permissible emission standards, permit conditions;

• to use natural resources rationally in the implementation of the Company’s economic activities, to take measures for their protection, restoration, rehabilitation of disturbed territories;

• prevent and minimize emissions of pollutants into the atmosphere, discharges of pollutants from wastewater, soil contamination with hazardous industrial waste.

In addition to environmental Policy measures, the Company implements a large number of environmental actions aimed at improving environmental culture, cooperates with a wide range of stakeholders in order to exchange experience, develop the legislative framework and disseminate practices of responsible attitude to the environment.

The Company continuously monitors the achievement of the established environmental management objectives; if necessary, corrective measures are developed to ensure the implementation of the Company’s Policy in the field of environmental management; voluntary mechanisms of environmental responsibility have been introduced, such as independent audit and certification for compliance of the environmental management system with the requirements of the international standard ISO 14001.