JV Kazgermunai LLP General Director addressed the report on the results of the year 2020

01 march 2021

Murat Kenesbayevich Mustafayev, General Director presented the Partnership activities report on the results for the year 2020 by video message as an alternative of the Management Board Reporting Meeting to the labor collective due to coronavirus infection pandemic.

In order that employees were still able to ask their question, the Company collected of question list and announced about that in advance through the corporate email, WhatsApp working chats, special boxes for communications and suggestions.

The video- message was broadcast on the Akshabulak and Nuraly fields on the special separate TV channel in the period of February 21 to February 27. For employees of the Head Office in Kyzylorda and Representative Offices in Nur-Sultan and Almaty the video-message was available for watching using work computers during working hours from 23 to 26 February.

General Director of the Company started the report with an analysis on accidents, industrial injuries and occupational diseases. No such occasion that have any incident or work injury been recorded in the Company for 12 months of 2020. However, the number of medical evacuations has increased compared to 2019, regardless the overall trend with basic types of diseases of employees decreasing. The main reason for this was the identifying COVID symptoms in employees of the oilfields during the first wave of the pandemic. In total, 62 employees of the Company have had coronavirus infection over the past year. The topic of one of the next slides of M. Mustafayev's presentation was the activities to prevent the spread of COVID-19, carried out in the Company during the reporting period.

The second block of the speech contained the production indicators of the Partnership, organizational and geological and engineering operations. Regardless the difficulties that the Company faced in the past year, the plan for oil production was over-fulfilled by 1.1% and amounted to 1,555.2 thousand tons. Associated gas production also over-fulfilled the plan by 1.5% and amounted to 375.2 million m3. For such indicators as: commercial dry gas transfer, production of LPG, water injection to maintain formation pressure, the planned indicators were also exceeded by 1.3%, 2.9% and 3.3%, respectively.

Further, Murat Kenesbayevich had addressed the subject related to financial indicators of JV Kazgermunai LLP, after that the Human Recourses block was presented to the employees. He brought to the attention of collective the gradual reduced level of Company staffing, highlighting that the reason for this dynamics is not reduction of personnel, but the optimization and revision of vacancies when it occur in the Partnership. In the Human Recourses block, such topics as: labor discipline, filling vacant positions, payment of bonuses, personnel training, rewarding employees were also considered.

The next block of the presentation was the Social block. During the whole year, the Company regularly fulfilled all obligations under the Collective Agreement. Regardless the coronavirus infection pandemic, during the period of relative stabilization of the sanitary and epidemiological situation in the Republic, a large number of employees of the Partnership took advantage of their right to free of charge the health resort treatment.

Also, the Company collective was provided with information about the sponsorship of Kazgermunai. Absolutely, the most significant and important contribution was the assistance to the Kyzylorda Region at the struggle with COVID spread, for which 160 000 000 KZT was allocated. With these funds, an Oxygen Station was installed in the Kyzylorda Multifunctional Regional Hospital, which now provides oxygen to several Medical organizations of the City at once, portable digital X-ray units were donated to the Zhanakorgan and Karmakchinsky Regional Hospitals and the reagent kits for PCR-test on COVID-19 were donated to the Regional Phthisiopulmonology Center. Report of M. Mustafayev continued with the announcement of the Company's investment plans for 2021. The planned oil production for the current year is 1,452.9 thousand tons, gas production is 316.7 million m3. A large number of activities are planned in the framework of labor Health, Safety and Environment, Human Resource and Social policy. In 2021, particularly, the Collective Agreement expires in the Company. Due to that, will establish a working group in the IV quarter in order to sign a new Collective Agreement for 2022-2024.

The Kazgemunai collective have received detailed information about the work that the Company is carrying out in the framework of projects to contribute the resource base of the Company. Murat Kenesbayevich completed his report by answering the questions of the collective (it was abovementioned about collecting the questions).