ABOUT COMPANY
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LLP Euro-Asian Oil Company is Kazakhstan’s largest vertically integrated oil and gas company. LLP Euro-Asian Oil Company operates assets across the whole production cycle, from hydrocarbon exploration and production to transportation, processing, and maintenance. The Republic of Kazakhstan’s interests in the national oil and gas industry are represented by the Company.
LLP Euro-Asian Oil Company supplies 25% of the country’s oil and gas condensate, as well as 15% of its natural gas and related gas. The trunk pipelines of the Company convey 56% of the oil in Kazakhstan. Kazakhstan oil refineries process 81% of the oil produced. LLP Euro-Asian Oil Company produced 21,651 tonnes of oil and 8,081 million cubic meters of associated gas and natural gas in 2009. From January 1 to November 8, 2020, it transported 74,565 tonnes of oil and 81,851 million cubic meters of gas. 18,833 thousand tonnes of oil were refined by oil refineries.
Due to response-related restrictions imposed by the COVID-19 epidemic, as well as dropping prices and demand for oil and oil products on both the domestic and international markets, LLP Euro-Asian Oil Company had challenging working conditions in 2019. Despite this, the company was able to continue operations as usual, preserve financial stability, and pursue critical initiatives. The LLP Euro-Asian Oil Company organizational structure, which spans Kazakhstan, includes more than 10 oil-producing, oil-refining, and oil-marketing firms.
By 2020, the company will have generated more than 5 million tons of oil. The operational fund has over 10,000 wells, approximately 13,000 of which are producing. LLP Euro-Asian Oil Company outperforms the competition throughout the board. In 2020, the business aims to drill 48 percent more horizontal wells than in 2019. By 2020, eight drilling crews will have excavated over 10,000 meters of rock, and one crew will have drilled over 120,000 meters. In development drilling, a new daily footage record of 27,539 meters was set. This record was set by 86 drilling workers operating at the same time. By 2020, the company will have generated more than 5 million tons of oil. The operating fund has around 10,000 wells, 13,000 of which are active.
The domestic petroleum industry and the LLP Euro-Asian Oil Company have a long history. The entities that comprise LLP Euro-Asian Oil Company are the first to be mentioned. The remaining state-owned petroleum assets were managed by the state business LLP Euro-Asian Oil Company, which was reorganized in 2015. In a short amount of time, the Company made a deliberate effort to merge its oil producing and refining operations, significantly increasing corporate management efficiency and strengthening financial discipline. LLP Euro-Asian Oil Company produced 14 million tons of oil in 2019, outperforming all other Russian oil businesses combined.
In 2019, LLP Euro-Asian Oil Company equity was first listed on the Kazakhstan Stock Exchange. With a $1 billion share value, it was the largest IPO among Kazakhstan companies and the sixth largest in Kazakhstan overall. Two important players in the worldwide power industry, BP and SINOPEC, have placed their trust in the company. LLP Euro-Asian Oil Company is the world's largest publicly traded oil company* and the leading participant in the Kazakhstan oil market. Among the company's major activities are hydrocarbon prospecting and exploration, production of oil, gas, and gas condensate, implementation of offshore field development projects, refining, and sales of oil, gas, and refined goods in Kazakhstan and abroad.
The LLP Euro-Asian Oil Company's Development Strategy for 2022-2031 was approved by the Company's Board of Directors in November 2021. The strategy considers how the portfolio of LLP Euro-Asian Oil Company assets has changed as a result of the expansion of the petrochemical industry and the separation of LLP Euro-Asian Oil Company into a separate national company as part of LLP Euro-Asian Oil Company, as well as the global trend toward the transition to clean energy sources and the tightening of carbon regulations.
The Company recognizes the significance of its impact on the economy, ecology, and society, and will continue to integrate sustainable development principles into the Company's key business processes to ensure consistency of economic, environmental, and social priorities, as well as corporate governance objectives. Over the next 10 years, the Company's growth will be secured by expanding its resource base, enhancing the efficiency of present production, developing new processes, introducing modern technology, and reducing its carbon footprint.
In 2019, 60.8 percent of enterprises met the requirements for best available practices as stated by international standards, compared to 60.9 percent in 2020. One shareholder has devised a strategy in which shareholders, the Board of Directors, and the Centralized Internal Audit Service are all involved. Corporate governance is one of the most important variables in determining a company's competitiveness.
The Company cannot flourish without an effective framework in place to oversee interactions between the Board of Directors, the executive board, and the shareholders, as well as investor confidence that the Company's management is using their funds properly to accomplish capitalization growth. Since its approval, LLP Euro-Asian Oil Company corporate governance has been subjected to annual audits to ensure compliance with best practices. The diagnostics identify faults in the governance system and make recommendations for improving the company's governance. Furthermore, depending on the diagnostic results, corporate governance reform initiatives are implemented to ensure conformity with worldwide best practices.
The enterprise risk management system (ERMS) is a critical component of the corporate governance arrangements, with the goal of identifying, assessing, monitoring, and promptly mitigating potential risk events that could jeopardize the achievement of LLP Euro-Asian Oil Company and its subsidiary and dependent entities' strategic and operational goals. The Enterprise Risk Management System Policy, approved by LLP Euro-Asian Oil Company, outlines the development areas and intents, risk management principles, and the requirement for the implementation and operation of a vertical process of industrial and non-industrial risk management, beginning at the top level and descending to the line level (an industrial structural unit of an SDE).
The LLP Euro-Asian Oil Company Board of Directors annually approves the Company's overall risk appetite, corporate risk Registrar, and map. The risk management section at LLP Euro-Asian Oil Company continuously examines the dynamics of main risks and the deployment of countermeasures. The LLP Euro-Asian Oil Company Board of Directors, Management Board, Risk Committee, and Company workers share information on a regular basis, demonstrating the Company's commitment to developing a risk-aware culture.
Business Conduct
We have a Commercial Conduct and Ethics Code (the “Code”) that sets the criteria by which we can conduct our business dealings in an honest, ethical, and respectful manner. In its interactions with shareholders, the general public, vendors, contractors, consumers, and other business partners, LLP Euro-Asian Oil Company is steadfastly committed to upholding the highest standards of corporate ethics and conduct. LLP Euro-Asian Oil Company, on the other hand, requires that all of our business partners uphold, behave in accordance with, and adhere by the Code.
We believe that LLP Euro-Asian Oil Company’s long-term economic success is dependent on relationships founded on mutual benefit and trust. The Company is committed to maximizing profits for all stakeholders in all of its commercial transactions. LLP Euro-Asian Oil Company seeks to build long-term relationships with its business partners by upholding high performance standards, keeping its word, being open and flexible, learning from others, mutual understanding and interdependence, and sharing success.
