Karakudukmunay LLP

Corporate Governance is crucial for an oil and gas company to ensure transparency, accountability, and responsible decision-making. Here is an outline of Karakudukmunay LLP’s framework for setting up our Corporate Governance:

1. Board of Directors:

• Composition: We have a diverse board consisting of qualified individuals with relevant expertise in oil and gas industry, finance, legal, environment, and social responsibility.
• Independence: Majority of the board are independent directors without any significant conflicts of interest.
• Roles and responsibilities: The board oversees strategic planning, risk management, compliance, and performance evaluation of management.
• Committees: We have gone ahead to establish specialized committees such as Audit, Risk, Compensation, and Nominating/Governance committees to enhance oversight and expertise.

2. Ethics and Corporate Culture:

• Code of Conduct: We developed and enforced a comprehensive code of conduct that outlines ethical standards, conflicts of interest, and compliance with laws and regulations.
• Whistleblower Mechanism: We have also established a confidential reporting mechanism to encourage employees and stakeholders to report any unethical practices or concerns.
• Training and Awareness: Provision of regular training programs to educate employees about ethical standards, corporate values, and compliance requirements.

3. Risk Management:

• Identify and assess risks: We conduct regular risk assessments to identify and evaluate risks associated with operations, environment, health and safety, legal and regulatory compliance, and market conditions.
• Risk mitigation: We continuously work to develop and implement risk mitigation strategies, including contingency plans and insurance coverage, to minimize the impact of potential risks.
• Crisis Management: We have established protocols and procedures to respond effectively to crises, including oil spills, accidents, or other emergencies.

4. Environmental and Social Responsibility:

• Environmental Stewardship: Adoption of environmentally sustainable practices, reduce carbon emissions, promote energy efficiency, and invest in renewable energy sources.
• Community Engagement: We make it a point of duty to engage with local communities, indigenous groups, and stakeholders to understand and address their concerns, and contribute to their well-being through social initiatives and responsible resource development.
• Health and Safety: We have gone ahead to implement robust health and safety policies, procedures, and training programs to ensure the well-being of employees, contractors, and communities.

5. Financial Reporting and Compliance:

• Financial Integrity: We put in adequate focus to maintain accurate financial records, ensure transparency, and comply with relevant accounting standards and regulations.
• External Audit: We engage an independent external audit firm to conduct regular audits and provide assurance on financial statements and internal controls.
• Regulatory Compliance: We comply with applicable laws, regulations, and industry standards related to operations, safety, environment, and data privacy.

6. Shareholder Communication and Engagement:

• Transparency: Providing timely and accurate information to shareholders, including financial reports, operational updates, and significant developments.
• Annual General Meeting: Conduct annual general meetings to engage with shareholders, address their concerns, and provide opportunities for participation and voting.
• Investor Relations: Maintain open communication with investors, analysts, and the financial community to ensure effective stakeholder engagement.