Corporate Governance
Karakudukmunay LLP is the national oil and gas company of Kazakhstan, operating in the field of exploration, production, processing and transportation of hydrocarbons. The company represents the interests of the government and the people in the oil and gas sector. In 2013, the Republic of Kazakhstan ranked 12th in the world in terms of proven reserves of oil and gas condensate, 22nd in terms of natural gas reserves and 17th in terms of oil and gas production. Karakudukmunay LLP produces 20% of the total volume of oil in Kazakhstan and 14% of gas and is proud of adding to the reduction of the unemployment rate in the country.
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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.