BG Kazakhstan: People - key to our success
Off the back of strong economic performance Kazakhstan has evolved over the past decade into a leading economy in Central Asia and the former Soviet Union. The state has proven its commitment to progress and achieved significant success by both reforming into a market economy and expanding its industrial capacities. With ten years of partnership with the Republic of Kazakhstan BG Group is proud to have played a part in this success growth story and the development of the country’s potential.
As the largest British investor in Kazakhstan today BG Group is the joint operator of the giant Karachaganak field with a 32.5% equity stake. The company also holds a 2% interest in the Caspian Pipeline Consortium (CPC) and a 16.67% stake in the North Caspian Production Sharing Agreement (NCPSA).
BG Group has a long relationship with Kazakhstan and the company has discovered energy, in both subsoil and people. As was recently stated by BG’s Group Executive Vice President for Asia and the Middle East region Dave Roberts: “It is the people who have brought us to this point and it will be people who will drive the future growth in this region”.
People are at the heart of BG Group’s success in any place it operates - and Kazakhstan is no exception. As Dave points out, “there is a tremendous energy in culture, talented people with strong education backgrounds and a desire to deliver operational excellence and long term growth”. Over the last ten years in Kazakhstan, BG Group has witnessed the harnessing of this potential and is committed to further development of the country’s human resources through its partnerships within the education sector in Kazakhstan.
An example of this in BG is seen in the partnership with the Kazakh-British Technical University (KBTU), Shell and the British Council, launched the International Graduate Programme. Through this programme the KBTU has teamed with four UK universities to deliver quality postgraduate programmes. The programme, which is a partnership between industry and the education sector, aims to identify available talent at early stages and train professionals in the petroleum industry which will over a period of time become key contributors to driving the sustainable development of the country. Such programmes are a response by the BG Group to its long term commitment to skills transfer - equipping people with the personal, technical, commercial and environmental skills to become the managers of the future.
The BG Chair of Environmental Technology, based at the Almaty Institute of Power Engineering and Telecommunications (AIPET), is another example of BG’s long-term commitment, now in its 10th year. This programme runs a Masters Course in Environmental Management and develops practical solutions to address some of Kazakhstan's environmental problems including contaminated land, water pollution, wastewater treatment and sustainable water resource management. A number of the research recommendations developed by scientists of the BG Chair have been incorporated into the wider environmental programmes of the Government. The European Union has consistently supported the work of the BG Chair, providing co-funding for eight large research programmes and several of the recommendations resulting from the completed projects are now being implemented. BG Group recognises that protecting and enhancing the environment by minimising impacts, meeting and often exceeding legal requirements and delivering stakeholder expectations are critical to maintaining and developing a successful business.
Kazakhstan BG Group has developed BG Group also makes voluntary and contractual contributions to social projects through each of its ventures in Kazakhstan. At Karachaganak, for example, such commitment is realised through annual $10 million KPO budget for community projects, like the recent gasification of the nearby Zhanatalap village, or other projects aimed to support social needs of the community.
Nationalisation and local content programmes are key priorities for BG and its partners in Karachaganak. The Karachaganak programme has over the years emerged as a model case for the Kazakhstan industry. In 2003 KPO Kazakh content on contractual commitments was 63% compared to a target figure of 43%. By the end of 2003 over 150 national companies had attended training seminars and courses organised at Karachaganak. In addition to this a number of managers at Karachaganak take part in the International Management programme organised throughout BG, which again aims to train managers for the future. This all done with a focussed awareness that building partnerships between local and international companies are enablers towards skills transfers within oil and gas operations.
In good long term relationships based on principles of cooperation and commitment to the responsible and sustainable development of the country and its people. Sir Robert Wilson, BG Group Chairman, said: “Modern companies need to take a broad view of their responsibilities to the societies in which they operate. This tends to be particularly true of the extractive industries even when the product, such as ours, is one that is favoured for reasons of convenience to customers and for its environmental benefits.” Like elsewhere in the world, BG Group’s business principles support a commitment to responsible citizenship, providing a firm foundation of values and operating principles to guide management decisions. Based on these principles, BG Group has not only discovered energy itself, but also energy in the people of Kazakhstan.
Table of contents
PetroKazakhstan: Transforming Subsoil Energy Terrance J. Powell
Legal Environment for Service Companies Saule Akhmetova
DRESSTA in Kazakhstan: proved over time! Wieslaw Jakobik
Black Gold of Bogatyr Dennis Price
The Kazakh Upstream Tax Regime: Comparative Analysis Gerard Anderson
A Public Shell, or How to Enter the US Stock Market Oleg Batratchenko
