ANPZ en Electric

SAFERTY
QUALITY
STABILITY
ANNUAL REPORT
2020
ANNUAL REPORT 2020
CONTENTS
Key achievements in 2020 2

Key events of 2020 6
Message from Сhairman
of the Board 10
Corporate Governance 110

Risk management 141 Attachment.
About the Refinery 15 Management Structure 112 Financial statements 152
Risk management system 142
Strategy 24 General Meeting of Independent auditor’s report 154
Participants 112 Risk map 144
Environment overview 25 Statement of financial
Supervisory Board 113 Implementation of an internal position 160
Operating results 27 control system 146
Composition of the Statement of comprehensive
Financial and economic Supervisory Board of Atyrau Key risks 147 income 161
results of the year 36 Refinery LLP 116
Statement of cash flows 162
Commercial activity 43 Activities of the Supervisory
Board 122 Statement of changes in
Business initiatives 48 equity 163
Board 124
7 new projects 53 Notes to the financial
Composition of the Board 126 statements 164
Procurement practices 61
Remuneration for Members of Glossary 202
the Board 132
Contacts 207
Compliance Control 132
Sustainable Development 64 Corporate Ethics 135
Personnel Management 69 Corporate Principles 136
Environmental Protection 90 Internal Audit 138
ANNUAL REPORT 2020
ABOUT THE REFINERY

KEY ACHIEVEMENTS
in 2020
Technologies
SUSTAINABLE DEVELOPMENT
Production ■ On-spot loading rack (OSLR) was put
into operation with the transition to In 2020, Atyrau Refinery introduced measures EXCELLENT LIGHT
100 % light oil products loading; at the technological units to achieve higher PRODUCTION INDICATORS
■ With the installation of new pipelines economic performance indicators, improve
INSTALLATION OF NEW PIPELINES
and a manifold at P and OPT, all quality characteristics of the components gasoline
1,053,978
PROVIDED AN INCREASE IN THE gasoline streams were removed from produced and increase the volume of
VOLUME OF STORAGE OF GASOLINES the plant’s units (some of the flows targeted products to ensure production of
IN THE PRODUCT PARK OF THE
PLANT from AHP, DCR and ORPF were not high-quality products that meet the K4 and tons
38 57
removed, since it was not envisaged by K5 class standards.
thous. the project) to the automatic gasoline diesel fuel
CORPORATE GOVERNANCE
1,472,181
FROM TO tons mixing station (AGMS). Implementation At the end of 2020:
of the proje NUMBER OF PROCESS 1. Highest KPI in the history of the plant:
PLANTS NUMBER OF PROCESS ■ refinery yield – 77.2 %; tons
PLANTS NUMBER OF PROCESS PLANTS ■ light oil product yield – 59.2 %.
GASOLINE OF EXPORT DIRECTION IS
RELEASED AND SHIPPED:
NUMBER OF PROCESS PLANTS ct 2. Excellent light products production JET FUEL JF
84,086
increased the storage volume of indicators:
AI-92 208 thous.

tons
gasoline in the plant’s tank farm from
38 to 57 thous. tons;
■ gasoline – 1,053,978 tons;
■ diesel oil – 1,472,181 tons; tons
26
■ AI-92 gasoline and K4 (Euro-4) and K5 ■ jet fuel JF – 84,086 tons.
thous.
DF (winter) tons (Euro-5) class fuel for export direction 3. In 2020, a record volume of petrochemical
was released and shipped: products was produced – 250,443 tons.
RISK MANAGEMENT
• AI-92 – 208 thous. tons; 4. Khazar –38, –32 diesel fuel production.
• DF (winter) – 26 thous. tons, In 2020, we shipped 44.0 thous. tons.
DF (summer) – 96 thous. tons. 5. Production of 100 % clean diesel fuel that
NUMBER OF TECHNOLOGICAL UNITS ■ A roadmap has been developed and meets environmental classes K5 (Euro-5)
PRIOR
preparatory activities for the production (sulfur content no more than 10 ppm).
TO
THE MODERNIZATION 9 of marine distillate fuel in accordance
with GOST 32510-2013 rev. No. 1 (DMX,
6. We have finalized preparatory activities for
the production of Jet A-1 fuel for turbojet
24
AFTER DMA, DFA, DMZ, DFZ, DMB, DFB brands) engines in accordance with ASTM D 1655 B
THE MODERNIZATION have been initiated; standard.
■ Atyrau Refinery LLP passed
the international certification of REACH
ATTACHMENT
oriented products for three products:
“Paraxylol”, “Benzene” and “AI-92
Gasoline”.
2 3
ANNUAL REPORT 2020
ABOUT THE REFINERY

REACH certificate is a document issued during the assessment and
registration of conformity of chemical substances for the purpose of their
free circulation in the territory of the European Union. In accordance with
the EU Regulation 1907/2006 dated 18.12.2006, the REACH certificate
(Registration, Evaluation and Authorization of Chemicals) is required
to improve and optimize the existing legal framework in the field of
regulation of production and circulation of chemical products in the EU.
Based on the results of REACH certification and registration, Atyrau
Refinery LLP received the right to import Paraxylol, Benzene and AI-92
Gasoline to all European Union countries.
Finance Social
Matters
■ In January 2020, Atyrau ■ In December 2020, the balance ■ Reconstruction of a number ■ Presenting keys to new
Refinery LLP attracted a of USD 98 mln was converted of infrastructure facilities of apartments to qualified
RISK MANAGEMENT
concessional loan in tenge into tenge under the foreign the plant. specialists of the plant.
at Development Bank of currency loan with Halyk Bank of ■ New medical center for ■ Opening of the renovated
Kazakhstan JSC in the amount Kazakhstan JSC. the provision of comprehensive, museum of history and labor
of KZT 46 bln. The funds were ■ Atyrau Refinery transferred qualified medical care. glory to the 75th anniversary of
fully directed for partial early 35.3 bln tenge in taxes to ■ Opening of the Institute of the enterprise.
repayment of foreign currency the budget of Atyrau city, with Petrochemical Engineering and ■ Reconstruction of the central
loans at the Export-Import Bank an increase by 21 % as compared Ecology. canteen.
of China and Halyk Bank of with 2019.
Kazakhstan JSC.
ATTACHMENT
4 5
ANNUAL REPORT 2020
ABOUT THE REFINERY

KEY EVENTS OF
2020
During the celebration of the Day of
Chemical Industry Workers, a number of
veterans of the plant and active workers
Members of the Finance and Budget were awarded.
Committee of the Mazhilis of On July 1, 2020, scheduled shutdown
the Parliament of the Republic of maintenance began at 15 process units of
Kazakhstan visited Atyrau Refinery. four production facilities: CFDR, AHP, CSP,
Atyrau Refinery LLP and MEDIKER
company signed the Contract for The Atyrau Refinery launched the scheduled DCR of the Atyrau Refinery.
In honor of the 75th anniversary
Comprehensive Medical Services shutdown maintenance of equipment The central canteen of the plant was
of the Great Victory, held
for the personnel of Atyrau for EDP ADU-2, CGDFHU, HPPP (tit.78) of reopened after a major reconstruction.
the traditional “Grateful
Refinery LLP. ORFDW and SRU CSP processing units. Alik Aidarbayev, Chairman of
Descendants” campaign.
Six administrative and household the Management Board of KazMunayGas
facilities were put into operation at NC JSC, paid a working visit to the Atyrau
March the Atyrau Refinery after thorough region.
January
overhaul. Opening of a new building of the medical
April center.
May July
February Sanitary regime has been strengthened
at the Atyrau Refinery: disinfection of
administrative and household premises August
Sh. Danbay, Atyrau Refinery LLP’s General and the territory.
Director held a solemn ceremony and Atyrau Refinery employees organized a June 100 families of workers of the Atyrau
presented keys to the apartments to 13 patriotic challenge – sang the National Refinery received keys to new
promising young specialists of the plant. Anthem of the Republic of Kazakhstan
RISK MANAGEMENT
In honor of the International apartments in the Victory Park
Atyrau Refinery LLP and S. Utebayev and the famous song “Atameken”. Children’s Day Atyrau Refinery LLP residential complex of the oil capital.
Atyrau University of Oil and Gas signed Petrochemical products – Benzene held a traditional children’s Akhmetzhan Yessimov, Chairman of
a memorandum of understanding and and Paraxylol produced at the Atyrau drawing competition. the Board of Samruk-Kazyna NWF JSC
cooperation. Refinery have passed the international visited Atyrau Refinery.
As part of the clean-up day, more
We held grand opening of REACH certification, and we than 700 workers came to clean Renovated museum of history and
the Co-working center for our workers obtained the right to export them to the plant’s territory. labor glory was opened at the Atyrau
on the basis of the training center of the European Union countries.
Refinery to the 75th anniversary of
the Atyrau Refinery. the enterprise.
ATTACHMENT
6 7
ANNUAL REPORT 2020
ABOUT THE REFINERY

A Meeting was held between Joint project for the opening of
the General Director of In honor of the Day of Professionals, the Institute of Petrochemical
Atyrau Refinary, Sh. Danbay Atyrau Refinery LLP hosted award Engineering and Ecology was
and the leadership of APEC ceremony for a number of the plant’s implemented by S. Utebayev Atyrau
Petrotechnic College. workers and veterans. University of Oil and Gas and
SOLOMON: a project to improve Zhaiyk-Caspian Aarhus Centre held the Atyrau Refinery.
Atyrau Refinery celebrates its 75th
anniversary. the rise of production activity online conference of technologists The first system for monitoring
entered in phase III. of Atyrau Refinery and community the technical condition and
Public figures of Atyrau city jointly got automatic diagnostics COMPACS®
leaders of Atyrau city.
acquainted with our environmental has been implemented at
projects of Atyrau Refinery. Data on the state of the atmospheric
air are transmitted on the LED-screen the catalytic cracking light naphtha
October
of Atyrau Refinery LLP. esterification unit (TAME) of
the Atyrau Refinery.
Atyrau Refinery specialists train
September their skills using computer simulator
November complexes – CPC.
December
RISK MANAGEMENT
ATTACHMENT
8 9
ANNUAL REPORT 2020
ABOUT THE REFINERY

MESSAGE FROM THE
CHAIRMAN OF THE BOARD
Like all sectors of the economy, the oil the refining yield amounted to 77.2%,
refining sector has also experienced and light oil products yield amounted
a number of difficulties. But thanks to to 59.2%. This became possible due
the prompt and thoughtful response to the modernization of the plant’s
of the Samruk-Kazyna fund and processing units.
the national company KazMunayGas,
the production potential of In 2020, we practically doubled
the group’s enterprises and, most the production and export shipments
importantly, jobs and salaries were of high value-added products –
Dear colleagues, preserved. Benzene and Paraxylol. We increased
the export volumes of gasoline.
2020 was a tough year for Kazakhstan. During the hard time for the whole Last year, we started to supply our
The country’s leadership was forced country, the Atyrau Refinery team winter diesel fuel Khazar with a cold
to deploy large-scale measures to showed fantastic concentration filter plugging point of minus 38°C
combat the COVID-19 coronavirus of willpower, solidarity and corresponding to the environmental
infection pandemic, and in the spring consciousness. During the strict class K5 to the external market.
of last year, the state of emergency quarantine, the plant did not stop
was introduced, and quarantines operating for a minute and worked as Receiving the international REACH
and restrictions on the work of usual, fulfilling the production plan Certificate which grants the right
RISK MANAGEMENT
DANBAY Shukhrat organizations throughout the country of the Ministry of Energy of the RK for to import Paraxylol, Benzene and
Chairman of the Board, “Atytau Refinery” LLP remained in various forms until the production of socially significant AI-92 Gasoline to all European Union
the end of the year. This led to a oil products. On top of all, at the very countries was an important event for
decrease in the country’s business peak of the pandemic, we successfully the plant.
activity and complications in carried out scheduled maintenance
the operation of industrial enterprises. of 15 processing units and launched Despite all the difficulties brought
Such measures in the fight against them on time. by the pandemic, we managed to
the pandemic were carried out around maintain the enterprise’s financial
the world and led to a decrease At the end of 2020, the volume of stability in 2020. Not only we fulfilled
in the global economy, which raw materials processing amounted the plant’s obligations to the state
negatively affected the demand for to 5,016 mln tons. The volume budget, but also increased the amount
ATTACHMENT
the Kazakhstani export products. of refining reached 4.5 mln tons. of deductions. At the end of 12
The highest KPIs in the entire months of 2020, the Atyrau Refinery
history of the plant were achieved:
10 11
ANNUAL REPORT 2020
ABOUT THE REFINERY

Based on the results of 2020
the crude processing made up 5,016 thousand tons
paid taxes to the state treasury in our industry, jointly with S. Utebayev
the amount of KZT 40.3 bln. Atyrau University of Oil and Gas,
we managed to implement a highly
2020 was an anniversary year for us – anticipated and significant project –
the Atyrau Refinery turned 75 years we have opened the Institute of
old! In honor of this date, and being Petrochemical Engineering and
guided by the care of the personnel, Ecology. The unique educational
we have performed the reconstruction center will train specialists in high-
of a number of facilities of the plant demand area for the oil refining and
infrastructure. We opened a new gas chemical industries. And 2021
medical center, overhauled the central was declared the Year of Knowledge
canteen and the plant’s museum. at the Atyrau Refinery!
All these facilities have modern
equipment. 142 plant workers 2020 was a year of strength tests
became the happy owners of new and and a year of positive changes, our
long-awaited housing. Among them professional growth and achievement
are specialists who, by their effective of target figures. We will not subside
work, have proved their loyalty to with what has been achieved, we have
RISK MANAGEMENT
the Atyrau Refinery, and those whom many plans and productive activities
we consider to be the promising ahead of us. First and foremost, we
future of our plant. will continue to work on increasing
the efficiency of oil production,
Today, Atyrau Refinery is practically a including high added value products
brand-new plant, where all the best and improving production technology.
world technologies in the field of
oil refining and petrochemistry
have been introduced. And a perfect
production requires competent, highly
qualified personnel. In order to solve
ATTACHMENT
the problem of personnel shortage for
12 13
SAFERTY
QUALITY
STABILITY
About
the Refinery
24 Strategy
25 Environment overview
27 Operating results
IN 2020, RECORD 36 Financial and economic results

of the year
VOLUME OF 43 Commercial activity
PETROCHEMICAL 48 Business initiatives
250,443
PRODUCTS 53 7 new projects
61 Procurement practices
tons
ANNUAL REPORT 2020
ABOUT THE REFINERY

ABOUT THE REFINERY
Atyrau Refinery LLP is the oldest Over the past several years, Sinopec Engineering (Group), Co. hundred units of test equipment,
specialized enterprise in Kazakhstan within the framework of the state Ltd (China), Marubeni Corporation which makes it possible to conduct
and an acknowledged leader in its industrialization program at (Japan) and KazStroyService Oil about 300 thousand tests for
industry. the Atyrau Refinery LLP, an extensive and Gas Construction Company JSC certification of products every day.
work has been done to modernize (Kazakhstan). 104 domestic A quality management system has
The enterprise’s first workshops were existing technological installations, companies participated in been introduced in the research
put into operation on September build modern oil refining complexes, the construction, which was deployed center of the Central Laboratory of
8, 1945 during the Great Patriotic and form a petrochemical cluster. at 55 sites. Totally, 12 processing the Enterprise, which is provided by
War. The opening of the plant was Reconstruction and modernization units and more than 40 off-plot highly professional personnel who
exceptionally strategic. The initial allowed the Atyrau Refinery LLP facilities were built under the project. have passed through the training
refining capacity was 800 thousand to increase the release of socially The extensive renovation helped at enterprises of the countries of
tons of oil per year. significant oil products: high-octane to keep the Atyrau Refinery LLP near and far abroad. In addition,
gasoline, clean diesel fuel, aviation competitive in the modern fuel the staff of the plant includes 7
Gradually, the plant acquired a fuel by obtaining additional volumes market and to minimize the plant’s expert auditors for certification of oil
vital importance for our country’s of mixed kerosene-type jet fuel. harmful impact on the environment. products and internal auditors for an
economy. In the 60s, the course was At the same time, the quality of The strategic goal of the integrated management system.
shaped to further increase the oil produced gasoline at the plant was reconstruction – the organization
refining volume by constructing new brought to Euro 4, 5 Standards with of a modern technical base at Personnel is the main resource
units. For a long time, the Atyrau benzene content of less than 1 %. the operating enterprise. Today, and the main value of Atyrau
Refinery remained the only enterprise the plant’s products steadily conquer Refinery LLP. Dedicated to their
in Kazakhstan to produce transport With the purpose of further the world’s markets. profession, committed to continuous
fuel. development of the petrochemical development, self-sacrificing and
RISK MANAGEMENT
industry at the refinery, the key task The foundation of all the enterprise’s deeply involved in the business of
After Kazakhstan gained was solved: the first production of achievements is the ultimate the plant, employees are the key to
independence, the Atyrau Refinery Benzene and Paraxylol in Kazakhstan attention to the quality of success in all initiatives and projects.
went on challenging road of had been created. the products. From the first days Even in spite of the challenges of
development, transition to the rails of its existence, the central plant 2020, our team demonstrates its
of a market economy, increasing The final stage of the modernization – laboratory has been functioning at readiness to continue successful
profitability, and following world construction of deep oil conversion the Atyrau Refinery, at its disposal development and follow the latest
trends in oil refining. complex – was carried out by today there are more than 680 trends in the downstream segment.
the efforts of an international measuring instruments and over a
consortium, which included
ATTACHMENT
16 17
ANNUAL REPORT 2020
ABOUT THE REFINERY

Efficiency of Operating Processing Units
processing unit nominal capacity measurement unit
EDP ADU-2 252.2 tons per hour
EDP AVDU
AU block 378.8 tons per hour
VU block 227.2 tons per hour
LG-35-11/300-95
HT block 72.0 m3 per hour
catalytic reformer block 72.0 m3 per hour
CCR 126.2 tons per hour
PX 362.0 tons per hour
TNGU 3,300.0 m3 per hour
DCU 121.0 tons per hour
CCU 23.0 tons per hour
CGDFHU
HT BS block 81.7 m3 per hour
isomerisation block 32.0 m3 per hour
HT & DFD block 198.0 m3 per hour
SRU 1,460.0 kg per hour
HPPU
HPP 11,057.0 nmc per hour
HPU 5,612.0 nmc per hour
Т 3201 300.0 tons per hour
RISK MANAGEMENT
Т 3209 31 block А 88.0 tons per hour
31 В block 33.0 tons per hour
32 block 65.0 tons per hour
33 А block 4.9 tons per hour
33 В block 4.9 tons per hour
Т 3212 (HPU) 6.9 tons per hour
Т 3212 (HPP) 8,700.0 nmc per hour
ATTACHMENT
18 19
ANNUAL REPORT 2020
ABOUT THE REFINERY

“ATYRAU REFINERY” LLP
SCHEMATIC DIAGRAM AND FLOWS
Gasoline and diesel Gasoline and diesel
Gasoline fuel hydrotreating unit Light naphtha fuel hydrotreating unit Isomerate
(gasoline section) (isomerization)
RCMB
Heavy naphtha LG-35-11/300-95 unit Reformate Benfree reformate
Gasoline
Naphtha НT Light naphtha Parisom Isomerate
Benzene
Gasoline
Crude Distillation
OIL
Unit EDP ADU-2
CCR Reformate PX Paraxylol
KGF Gasoline and diesel

Light Coker fuel hydrotreating unit Diesel
(diesel section)
Gas Oil
Fuel oil Kerosene
Catalytic
KGF cracking Prime D Diesel
light gasoil
RISK MANAGEMENT
Kerosene
Crude Distillation
OIL
Unit EDP AVDU-3
VGO R2R
LPG
Butenes
Sulfrex LPG Polygasoline
Delayed coking
oligomerization
heavy gasoil
Gasoline CC gasoline
cut
Coker gasoil + LCC TAME +

Prime G TAME Refined petroleum
residue gasoline
Vacuum residue
Calcinated
DCU Petroleum coke Coke calciner coke
ATTACHMENT
Fuel oil
20 21
ABOUT THE REFINERY
RISK MANAGEMENT
ATTACHMENT
Visit of the Chairman of the Management Board of
“Samruk-Kazyna”, A. Yessimov, August 2020, with
the participation of the Akim of the Atyrau region,
M. Dosmukhambetov, the Chairman of the Management
Board of NC KazMunayGas JSC, A. Aidarbayev
ANNUAL REPORT 2020
ABOUT THE REFINERY

STRATEGY Strategic
Goals
Strategic
Indicators
The development strategy of Atyrau Refinery LLP for 2014–2022 ■ Increasing the efficiency of ■ Increase in the volume of oil
determines the directions of development for the main type of activity, petroleum products production, refining up to 5.5 million tons per
providing for strategic stability and improving the performance indicators including those with high added year;
of Atyrau Refinery LLP. value, and improving production ■ Increasing the refinery yield up to
technology; 87 %;
■ Improving safety at work, labor ■ Improving the efficiency of
and environmental protection; the refinery’s technological
■ Improving the efficiency of units (reducing process fuel and
equipment maintenance. irretrievable losses).
Strategic
Priorities
■ Sustainable development ■ Increasing the Kazakhstan’s content
and efficiency increasing of and supporting the domestic
the enterprise to assist the state in manufacturers;
stabilizing the domestic market for
petroleum products;
■ Comprehensive innovation and
technological development;
ENVIRONMENT OVERVIEW
■ Ensuring industrial and ■ Consistency and efficiency
environmental safety of in decision making and their The coronavirus pandemic and in 2020 declined for the first time
production; implementation; quarantine measures have led in more than 20 years. The decline
■ Social responsibility and human ■ Improving energy efficiency and to a global economic cutback in was 2.6 %. In the service sector,
resources development; development within the vector of 2020. According to the World Bank, the decline was 5.6 %, while
Decisions making in operational the “green economy”. the world economy contracted by production showed an increase
RISK MANAGEMENT
■
and investment activities based on 4.3 %. While, in advanced economies, of 2 %.
a accurate risk analysis; the decline amounted 5.4 %,
and in countries with emerging GDP Dynamics
economy – 2.6 %. 69,532.60
80,000 5
4.1 4.1 4.5 70,134.10
70,000 4
INCREASE IN THE VOLUME INCREASING THE REFINERY Kazakhstan has also faced 60,000 54,378.90
61,819.50
3
OF OIL REFINING UP TO YIELD UP TO the negative economic impact 46,971.15
5.5 87%
50,000 2
of the pandemic. The state of 40,000 1.1 1
mln
tons emergency and quarantine across 30,000 0
the country restricting the work of 20,000 -1
organizations led to a cutback in
ATTACHMENT
10,000 -2
–2.6
business activity. Kazakhstan’s GDP 0
2016 2017 2018 2019 2020
-3
Gross domestic product by production method, bln tenge

Growth/Decline as a percentage to the previous year, % (right
scale)
24 25
ANNUAL REPORT 2020
ABOUT THE REFINERY

Oil industry of the Republic of
Kazakhstan has come under
Oil production in Kazakhstan, mln tons OPERATING
intense pressure. In connection
with the economic cutback and
90.5
RESULTS
90.36
the suspension of work in many
countries of the world, there was 85.7
a decrease in oil and petroleum

products consumption, a rapid At the end of 2020, the volume of During the current repair, internal
accumulation of reserves began, raw materials refined at the Atyrau devices of the column K-5 were
there was a risk of overloading 2018 2019 2020 Refinery amounted to 5,016 mln. replaced at the EDP AVDU-3 unit.
the world’s oil depots, and the price tons. The volume of production After replacement of the contact
of oil began to fall rapidly. The RK reached 4.5 mln. tons, approximately devices in the K-5 column of the VU
government, like the OPEC + 29 % of which is diesel fuel, 21 % – block, the production of vacuum
countries, introduced restrictive Oil export, mln tons gasoline and 21 % – fuel oil. gasoil was brought up to the design
measures on oil production in 2020, parameters (at least 48 % of
which helped stabilize the market. 72.5
With the installation of the DCU the batch).
In 2020, oil production in Kazakhstan 72.2 heavy gasoil discharge line at
decreased from 90.5 mln tons to 68.5
the CCU, the refining yeild was
85.7 mln tons. During the year, increased by an estimated 1.0 %.
68.5 mln tons of oil were exported.
Production Dynamics, tons
Currently, there are three major oil
Product name 2018 2019 2020 Change in %
refineries in Kazakhstan (Atyrau, 2018 2019 2020
Pavlodar, Shymkent refineries) and Production volume, tons 4,742,256 4,790,217 4,370,535 –8.8%
more than thirty mini-refineries. Gasoline Production 1,191,482 1,198,178 1,032,120 –13.9%
By the end of 2020, 11.53 mln
RISK MANAGEMENT
RT fuel production 40,878 104,078 77,805 –25.2%
tons of oil products were refined. Refined oil products, mln tons Diesel fuel production 1,458,633 1,547,560 1,456,169 –5.9%
4.48 mln tons of gasoline, 4.55 mln Production of household furnace fuel 128,743 10,754 24,018 123.3%
tons of diesel fuel, 2.1 mln tons of 17
Benzene production 16,202 26,607 43,786 64.6%
fuel oil, 438 thous. tons of aviation
Fuel oil production 1,144,707 1,235,842 1,047,767 –15.2%
fuel, 1 mln tons of bitumen were 16.4
Vacuum gasoil production 444,674 344,523 324,454 –5.8%
produced. 11.53
Coke production 130,666 134,820 127,843 –5.2%
Liquefied gas 165,844 126,951 126,902 0.0%
Sulfur 4,055 4,397 4,999 13.7%
2018 2019 2020 Paraxylol production 16,372 118,644 206,947 74.4%
change in semi-finished products
ATTACHMENT
–62,137 –102,275
remnants
26 27
ANNUAL REPORT 2020
ABOUT THE REFINERY

Production volume, thous. tons
Refining Volume Dynamics, tons 4,742
2018
Product name 2018 2019 2020 Change in % 4,790
2019
Total refining, tons 5,267,734 5,388,245 5,016,303 –6.9%
4,371
including oil 2020
mangyshlak oil 4,690,113 5,233,791 4,922,102 –6.0% 2,000 3,000 4,000 5,000
martyshinsk oil 505,483 92,111 38,670 –58.0%
light oil 25,299 – – –
GVP 43,380 53,838 50,120 –6.9%
Total refining, thous. tons Refining depth
gas condensate 3,460 8,504 5,411 –36.4%
hydrogen from natural gas H2 – – 5,296 – 5,268
2018 2018
5,388
2019 2019
5,016
2020 2020
3,000 4,000 5,000 6,000 60 70 80
SHOSHANBASSOV Adilet
Chief Technologist
“Despite the epidemiological situation in 2020 and In 2020, we substantially increased the export of gasoline
the measures taken to combat the pandemic, the plant and diesel fuel, which became possible due to the domestic
operated during the year as usual. We successfully market saturation. The growing capacities of the plant increase
completed the production program and carried out the country’s export potential and contribute to the economy
the necessary repairs. diversification.
The plant achieved record production indicators. Refining We performed preparatory work for the release of JET-1 jet fuel.
yield reached 77.2 %. The yield of light oil products The plant is now ready to manufacture and ship a new product.
RISK MANAGEMENT
increased to 59.2 % in 2020 as compared to 58.1 % in
2019. Last year, Atyrau Refinery passed the REACH oriented products
international certification for three products Paraxylol, Benzene
Last year, an automatic on-spot loading unit was put into and AI-92 Gasoline. Thanks to this, we were granted the right to
operation with a transition to 100 % loading of light oil import these products to all European Union countries, which will
products (gasoline, diesel fuel and RT brand jet fuel). contribute to the further growth of exports.
The installation of new pipelines made it possible In 2021, we will focus on completing the production program
to ensure the withdrawal of all gasoline flows from and achieving the target refining volumes. Our task is to provide
the plant’s units to the automatic gasoline mixing station the domestic market with the necessary oil products and continue
(AGMS). As a result, the volume of gasoline storage in to increase the shipment of the Kazakhstan’s products for export.”
ATTACHMENT
the plant’s tank farm increased from 38 to 57 thous. tons.
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ANNUAL REPORT 2020
ABOUT THE REFINERY

Business Process Development Operational efficiency is one of the main criteria for
quality work which reflects the best ratio between
RLG International the final results of the enterprise and the resources
spent on their achievement. The corresponding
As a result of the implementation the main activities of the enterprise, project started at Atyrau Refinery in 2019 and was
of the joint project of the Atyrau in particular, fulfillment of planned finished in January 2021. Its results are a reduction
Refinery and RLG International, indicators, reduction of unplanned in deviations of the final indicators of the production
the operational efficiency of oil downtime, involvement of personnel plan from the fact at the main highly profitable
products production at the refinery in solving production problems and production units of the plant by 23 % and a decrease
increased massively in 2019–2020. other criteria for perfect production. in the number of incidents: from 36 in 2019 to 25 in
Significant improvements have 2020.
occurred in various aspects of
Formation of the production efficiency management
system and production culture at the Atyrau
Refinery increased by 38 % in measurable terms
MODERNIZATION OF CONSCIOUSNESS – and the continuous improvement of production
ACHIEVEMENT OF HIGH AND STABLE RESULTS indicators hit 63 %. In terms of maintaining the Px™
(ON THE BASIS OF RLG FAIRTM METHODOLOGY ) methodology introduced in 2018 – preparation
SAFERTY and conduct of major overhauls, we have reached
QUALITY
STABILITY
stability of the process: the volumetric and capital-
intensive major overhaul carried out in 2020 at
P LA N N I N G
Organization of works Planning of works Optimization of works Fulfilment of works The result of the Atyrau Refinery was completed 3 days ahead of
the repairs 2020 schedule.
TION
FULFILL
I ZA
IM
T EN
OP T
Capital repairs
1,406 In the course of the project, we developed and
Development and Development of the detailed Conducting sessions with KPIs visualization for daily
management system implementation of a matrix work schedules on an hourly the direct performers to analysis and discussion of Employees and implemented a mechanism for monitoring the shift
repair management system basis optimize the critical path results and trends at all levels of contractors
the plant KPIs of the units, optimized the operational rhythm
of interaction in production by discussing plans
RISK MANAGEMENT
foreign
Units and plant business
overviews
Leadership’s round checks
Planning Meetings at
the facilities
Shift handover One-page efficiency report
specialists
and achievements every shift with the involvement
units being
of production personnel, created an algorithm
repaired for accepting and transferring a shift with
Operational rhythm – the development of checklists that clearly regulate
a system of effective
interaction
Weekly Business Review of
the Units and KPIs
Regular round checks by
the leadership at place.
Planning Meetings with the
staff every shift, assignment
A set of activities for
effective exchange of
Structured KPI reports
for management decision
units of the process of information exchange during
equipment
First-hand information of tasks for a shift, control
of knowledge
information between shifts making inter-shift.
3 days
At the beginning of 2021, Atyrau Refinery launched
Res
us p Focus Responsibility Commitment Feedback
oc
Reduction of
on
F
sibil
the repair time

the third joint project with RLG International, aimed
ity
Lidership
ent
at introducing the Mx™ (Perfect Maintenance)

itm
Re
s
m po
n
KZT 9.9 bln

Com se
maintenance system.
ATTACHMENT
System of economic effect of
the production What are we focusing on? What is the result of our To what extent are the participants How do we shape reducing the repair
culture formation What are our goals? work? How do we achieve involved? Are all the right people the desired behavior? time by 3 days
KPI? involved? Who else do we need?
30 31
ANNUAL REPORT 2020
ABOUT THE REFINERY

Digital Reliability
In December 2020, the first system The COMPACS® system is the world’s reduction in maintenance and repair is the start of the plant’s five-year
for monitoring the technical only hardware and software complex, costs compared to the scheduled Program for the transfer of dynamic
condition and automatic diagnostics which artificial intelligence provides preventive repair system (SPR). and main static equipment to
COMPACS® was implemented real-time early automatic diagnostics operation according to the actual
at the catalytic cracking light of malfunctions and a forecast of The system’s distributed hardware technical condition. The Atyrau
naphtha esterification unit (TAME) the technical condition of the main platform consists of intelligent Refinery will deploy the Compacs-
of the Atyrau Refinery. It is part technological equipment of refineries measuring modules and sensors Net® diagnostic network in the first
of the program for managing and petrochemical plants. The system of various physical quantities that quarter of 2021 and 4 more
the digital reliability of production ensures 100 % elimination of measure, amplify, convert and technological complexes will be
assets of the KMG Group aimed at accidents and unscheduled transmit signals from sensors on equipped with similar systems.
improving the safety and operational downtime of technological the units to a diagnostic station Implementation of this Program
readiness of technological facilities, complexes due to sudden equipment located in the control room of is a key link in the project for
the efficiency of maintenance and failures, a significant reduction in the processing unit. the implementation of risk-oriented
repair processes. the duration of scheduled shutdown digital technologies for managing
repairs by more than 30 %, an The introduction of intelligent the reliability and operational
increase in personnel discipline technology at the catalytic cracking efficiency of subsidiaries of
and responsibility, as well as a light naphtha esterification unit the KazMunayGas NC JSC Group.
Communication line with the Compacs-Net® diagnostic network Compacs diagnostic station
Pump sets with mechanical seals Centrifugal compressors

Pressure gauge Temperature gauge
Stations of the Compacs-Net® diagnostic network
Level gauge Vibration gauge
Axial
RISK MANAGEMENT
displacement
probe
Vibration gauge
Radial probe
Distributor box
PIM Module PIM Module
Column-vessel equipment Piston compressors Air-cooling units
Pressure gauge
Acoustic
RPM sensor
emission gauge
ATTACHMENT
PIM Module
Vibration
gauge
PIM Module
PIM Module
32 33
ANNUAL REPORT 2020
ABOUT THE REFINERY

Performance Excellence Project Further, one-on-one meetings The project’s prospects look
took place with 10 % of the Atyrau impressive. Provided that all
Atyrau Refinery jointly with HSB Solomon is a recognized leader Refinery employees on the topics recommendations are fully
Solomon Associates continues in benchmarking fuel and energy of understanding the working and correctly applied, we can
to implement the Performance enterprises and creating sustainable practices prevailing at the plant, achieve significant effect: energy
Excellence Process (PEP) project improvements at refineries with comparing them with the best consumption will decrease by 20 %
aimed at significantly improving extensive expertise in implementing industry experience for assessing compared to the level of 2018, losses
production performance in energy similar projects at refineries around and subsequent developing specific of hydrocarbons – up to 0.50 % by
efficiency, reducing hydrocarbon the globe. recommendations for improvements. weight, the yield of target products
losses and increasing the product will increase substantially.
yield of processing units. The project Cooperation within the PEP project In the second phase, Solomon
is vital for the plant because it is between Solomon and the Atyrau developed a series of proposals that But more importantly, the project is
aimed at qualitative improvements Refinery involves 3 phases. are prioritized based on the specific aimed at changing the production
not only in the business, but also in situation at the Refinery. culture of the plant workers,
the production culture at the Atyrau For the first phase, the plant improving behavioral functions,
Refinery. collected a significant amount of In 2020, the project entered the third namely, the formation of an
data from the target areas and phase – direct implementation of “accountable owner” mentality, when
submitted it to Solomon for analysis. Solomon’s recommendations at the team becomes the owner of
the Atyrau Refinery. In particular, the processes interested in the best
an action plan for implementation performance of functions and
of the recommendations is being activities. Deep involvement should
determined, and additional run through the entire business
proposals are being collected. chain and lead to the creation of
Responsible persons and leaders cross-functional teams from different
of the implementation teams have areas of production, who will
already been appointed. Thus, Sergei regularly discuss the current status
Shumilov, chief energy efficiency of production tasks, work out aspects
and IMS specialist with 25 years of that need to be improved, and
RISK MANAGEMENT
experience, was appointed the leader develop steps to achieve the best
of the team for implementation of end result.
changes in energy efficiency. Ibrayim
Kairliyev, head of the technical
department, is the leader of the team
for implementation of changes
in terms of reducing hydrocarbon
losses. Nail Khakimov, Deputy Head
of the technical department, headed
the team for implementation of
changes in product release.
ATTACHMENT
34 35
ANNUAL REPORT 2020
ABOUT THE REFINERY

FINANCIAL AND ECONOMIC
RESULTS OF THE YEAR
foreign exchange risk. Talking of the obligations, we mean
the loans from the foreign financial institutions in several USD
Mendebayev Timur bln, raised for the modernization.
Director of the Department of Economics and Finance
To understand the order of numbers, we can say that the plant
pays creditors about USD 400 million annually – this is
the interest and the main debt. So, in 2020 the plant paid
“2020 was a rather difficult year for the plant, as well as off to the creditors USD 404 million as part of the service
for the most enterprises. On the one hand, fighting against obligations.
the global pandemic, which demanded the introduction of
restrictive measures in work for the protection of the workers In recent years, we have been actively working to reduce an
and the plant, which meant a reduction in many habitual increase in the volume of the foreign currency loans. It is
operations and processes, produced an impact upon us, important to note that in 2018, the share of foreign exchange
as well as all production enterprises. In the conditions of liabilities made up 95%.
the pandemic and closed borders, the plant was able to
make repairs of a catalytic cracking unit. Cracking is a key We finished 2019 by reducing this share down to 84%, and
installation, which provides components for many other units at the end of 2020, we managed to reduce it down to 73%.
and, in general, ensures the depth of processing. Decrease in the foreign exchange liabilities reduces the foreign
exchange risks and costs, associated with the exchange rate
For petrochemistry a catalytic cracking unit is also a key differences, which is an important contribution to the further
production. Cracking provides the production of the so-called financial stability of the plant, since the Company earns in KZT,
“stable gasoline”, which later enters as the raw material and pays for loans in foreign currency. Especially taking into
passes to the naphtha selective hydrogenation unit, this unit account the fact that over the past 7 years, the average annual
purifies naphtha by hydrogen, and the refined naphtha feeds “depreciation” of KZT against US dollar made up 16.5%.
RISK MANAGEMENT
the Aromatics Production Complex (hereinafter referred to as
APC), which produces benzene and paraxylene. Besides, as part of improving the financial situation
the enterprise, we are working on refinancing borrowing on
Talking of the volume of oil refining, the refinery processed more favorable terms, currently available. In 2019, we carried
5,016 thousand tons. The volume of processing is out refinancing operations for USD 452 million, in 2020
the main aspect when we talk about the income level the amount of the refinancing operations made in aggregate
of the enterprise. As far as the financial management is USD 794 million. All this was preceded by a great deal of work,
concerned, it is impossible to ignore the Company’s efforts made by us together with the parent company KMG. The great
to stabilize the financial position, minimize the foreign support at every stage made it possible for us to achieve this
exchange risks and a successful loan refinancing operation. result.
ATTACHMENT
One of the most important priorities at this stage for In 2020, we have begun work for attracting money from
the enterprise is the correct management of cash flows, the European Bank for Reconstruction and Development
obligations in order to prevent cash gaps and an increased to finance the “Tazalyq” Project. The Project is aimed
36 37
ANNUAL REPORT 2020
ABOUT THE REFINERY

LOANS REPAID THE SHARE OF THE FOREIGN
54%
EXCHANGE LIABILITIES WAS
REDUCED DOWN TO
at modernizing the mechanical treatment facilities and

reclamation of the evaporation ponds. All this will allow
73%
the plant to reduce the level of impact on the environment in PAID TO THE CREDITORS LOANS REFINANCED
the process of operating activities. The EBRD is very attentive FOR 2020 FOR 2020
to the choice of projects and to companies to be funded, and

404 794
attracting such a respectable institutional lender speaks of
the high importance of our Project in the understanding of USD mln USD mln
the EBRD, as well as the corresponding level of our enterprise
for a possibility of the interaction with the international TOTAL LOANS LOAN BALANCE AT
3.4
financial institution of this rank. Signing a Loan Agreement will THE END OF 2020
take place in June 2021.

USD bln
1.56
USD bln
The plant remains one of the key taxpayers in the region and,
thus, makes an important contribution to the development of
the region and life of the city. Even in the difficult circumstances
of the last year, when many enterprises reduced their tax Income statement
payments, the plant paid KZT 42.3 billion in total to the local
and Republican budgets, as well as under the social obligations Key indicators of the income statement, KZT mln
of NJSC “GK Government for citizens “. Talking of the particulars, Indicator 2020 2019
the tax payments of the Atyrau Refinery after modernization Revenue 207,554 200,386
make up more than 20% of all tax revenues of the city of Atyrau. Prime cost (117,777) (104,878)
This is comparable to the specific weight of the Atyrau city’s tax Gross profit 89,777 95,508
revenues from such giants of the Kazakh oil and gas industries General and administrative expenses (3,882) (3,400)
as TCO and NCOC, despite the fact that these Companies Other operating income 3,380 7,518
significantly surpass the plant in terms of the scope of activities, Other operating expenses (56,205) (130)
turnover, size and magnitude of income. Operating income 33,070 99,496
Finance income 12,100 8,517
RISK MANAGEMENT
Finance Expenses (63,048) (65,301)
According to the instruction of the Management Board of
Loss/profit before tax (17,878) 42,712
“Samruk-Kazyna” JSC, by the end of 2021, it is required to reduce Income tax savings/(expenses) 489 (10,906)
the share of the foreign currency loans down to 80%. Already in (Loss)/profit for the year (17,389) 31,806
2020, ahead of the schedule, we have achieved the reduction
of the foreign exchange liabilities down to 73%. In many ways The main reason why the plant has a a “net income”. This also happened
it made possible thanks to the assistance of the executive body “net loss” is a negative exchange rate due to an uncontrollable factor, that
of the plant, as well as the support and expertise of Tiyesov difference. It arises due to the fact is, at that time, the positive dynamics
Daniyar, the Chairman of the Supervisory Board of the Atyrau that the “lion’s share” of liabilities, of changes in the USD dollar rate
Refinery, and its members, Melnik Victoria and Dandybayeva that is, loans, which we took in due against KZT.
Zhanara. Our goal for 2021 is to reduce this figure down to time for modernization, are in USD
55%.” dollars. In order for the plant to gain a net
ATTACHMENT
profit every year, we need to reduce
If you look at the results of 2019, you the foreign exchange liabilities as
can see from the Table that we had much as possible.
38 39
ABOUT THE REFINERY
On the plant’s contribution to the budget of Kazakhstan and Statement of the financial condition
Atyrau
Key indicators of the statement of financial position, KZT mln
Against the background of a general significant decrease in the processing Indicator 2020 2019
decline in the production volume, volume due to the general slowdown Assets 767,334 867,817
associated with the coronavirus in the pace of industry due to
including:
pandemic, the Atyrau refinery the pandemic. Non-current (long-term) assets 717,092 746,095
increased tax payments to the state Current (short-term) assets 50,242 121,722
treasury at the end of 2020. During The management of the plant took Equity 19,141 31,316
this period, the plant sent KZT 40.3 a number of anti-crisis decisions, Liabilities 748,193 836,501
billion as payments to the local and which made it possible to prevent a including:
Republican budgets, of which KZT 5 decrease in tax payments, moreover, Non-current liabilities 502,958 570,630
billion to the Republican budget, and to show an increase in payments in Current liabilities 245,235 265,871
KZT 35.3 billion to the local one. This relation to the previous year.
is by KZT 3.6 billion, or 10 % more The total assets of the plant (this Changes in the Equity are associated
as compared with the same period An increase in the excise tax on property, raw materials and materials, with the exchange rate loss on
in 2019 and by KZT 10 billion (32 %) gasoline from January 1, 2020 and money on the bank accounts, etc.) at foreign currency loans due to an
more than in the corresponding the amount of property tax played the end of 2020 amounted to KZT increase in the USD dollar exchange
period of 2018. also a certain role in the increase in 767.3 billion, 93 % of these assets rate.
tax payments. are long-term (mainly property),
The growth of tax payments the remaining 7 % are short-term. At the end of 2020, the Liabilities
was facilitated by the efforts The decrease in the long-term assets were reduced by 11 % and made up
of the plant’s staff to prevent a in 2020 by 4 % is due to depreciation. KZT 748.2 billion, of which 67 %, or
The decrease in the short-term KZT 503 billion, are the long-term
assets by 59 % by 2019 was due loans, attracted for the reconstruction
to a decrease in the volume of projects. The short-term loans
the borrowed loans in 2020. Besides, decreased by 8 % due to a decrease
in 2019, funds were received from in the debt to the suppliers for
RISK MANAGEMENT
the sales of the bonds, issued by the provided services, goods, work.
The city-forming enterprise of the Atyrau Refinery the Atyrau Refinery at the Astana
continues to be one of the largest taxpayers of International Financial Center (AIFC).
Atyrau oblast, providing one fifth of the income of
the city of Atyrau.
ATTACHMENT
40
ANNUAL REPORT 2020
ABOUT THE REFINERY

COMMERCIAL
Lightening the “foreign exchange burden”, ACTIVITY
we are moving towards better financial results
In order to finance strategic to save more than USD 14 million Our products continue to be in In 2020, 44,298 tons of benzene
investment projects for due to the lower corporate income demand at the global market. and 209,994 tons of paraxylene
the modernization of tax expenses. Moreover, the positive At the end of 2020, 208,269 tons of were shipped. Atyrau Refinery LLP
the construction of the Aromatic effects included a decrease in AI-92 gasoline and 121,499 tons of is the only producer of benzene and
hydrocarbons production Complex the Chinese funding in the AORC diesel fuels were shipped for export paraxylene in Kazakhstan.
and Advanced Oil Refining Project and the further funding in the volume, corresponding to
Complex with the participation of through the Kazakhstan’s financial the classes K-4, K-5 (an analogue This petroleum product is a valuable
the Chinese and Japanese suppliers institutions. of EURO-4, 5). Due to the high raw material for petrochemicals and
the Atyrau Refinery attracted quality of the petroleum products, is also export-oriented.
loans in USD dollars in 2010– The successful closing of the Atyrau Refinery has a possibility
2012 from Development Bank of the transactions was preceded by a to export them to the countries of In 2019, we began to develop a
Kazakhstan JSC, the Export-Import lot of work in terms of interaction the European Union. In 2020, for new product, which had not been
Bank of China, the Japan Bank for with the management of NC the first time, the shipment of diesel produced in Kazakhstan before –
International Cooperation and MUFG KazMunayGas JSC, Development fuel for export began. The main Khazar-38 diesel fuel, which had
Bank Ltd. After the completion of Bank of Kazakhstan JSC, Halyk Bank directions are the Netherlands, the highest low-temperature
the development of the borrowed of Kazakhstan JSC and the Export- Uzbekistan, Tajikistan, Kyrgyzstan. performance and corresponded to
funds within the frames of Import Bank of China. Also, a record shipment of the quality of the Arctic diesel fuel.
the construction projects, the Atyrau petrochemicals was carried out – In total, 31,950 tons of this product
Refinery continues a number of In May 2020, the Atyrau Refinery 254,291 tons. This is higher by more were shipped in 2020. The first
extensive projects for refinancing extended the term of the short-term than 75 % than that indicator in recipients of the product for their
and restructuring the foreign revolving credit line of Halyk Bank of 2019. own needs were Tengizchevroil and
currency loans. Kazakhstan JSC until the end of 2024. NCOC.
RISK MANAGEMENT
In 2020, the Atyrau Refinery carried The positive effects from Export dynamics, tons
out a successful large financial the transaction: ensuring the liquidity Petroleum products 2018 2019 2020 rev. %
transaction – obtaining a loan in of the funds. Gasoline – 66.428 208.270 214
KZT from Development Bank of Diesel fuel – – 121,500 –
Kazakhstan JSC on preferential In December 2020, the Atyrau Coke 133.402 123.126 130.275 6
terms. These funds were used Refinery converted into KZT Vacum. gas oil 443.445 330.945 321.536 3
for partial early repayment of the currency balance in Fuel oil 1,014,918 1,081,915 858,626
the loan of the Export-Import the amount of USD 98 million Furnace fuel 111.224 – – –
Bank of China, amounting to USD on a loan from Halyk Bank of Total 1,721,722 1,746,959 1,894,497 8
110 million, and for partial early Kazakhstan JSC. The positive effects
repayment of the loan of Halyk of the transaction: savings of
ATTACHMENT
Petroleum products 2018 2019 2020 rev. %
Bank of Kazakhstan JSC, amounting the debt servicing costs, reduction of
to USD 8 million. Jointly, the both the foreign exchange risk. Benzene 13.875 26.278 44.298 69
Paraxylene 4.858 118.267 209,992 78
deals allowed the Atyrau Refinery
42 43
ANNUAL REPORT 2020
ABOUT THE REFINERY

KAZIM Diyar
Managing Director for Logistics
and Customer Relations
“An important task for us is to build productive
relationships with regular customers – oil suppliers,
under whose contracts the ready processed products
are shipped. Our goal is also to avoid overstocking and
ensure efficient shipments. We analyze the domestic
market with the purpose of assessing and meeting
the Kazakhstan’s needs, primarily in light oil products,
such as gasoline and diesel fuel, and we provide export
of the Kazakhstan’s products to the foreign markets.
Petrochemical products are exclusively for export, since
they are not used in the Kazakhstan’s production. Last
year there has been a significant increase in the export
volumes. This growth is associated with the high quality
of the ARP products and an increased demand for
them abroad. The new directions for the shipment of
petrochemicals have been opened: in addition to Russia
and China, our products are now supplied to Belarus.
From the data, provided in the report, you also see a

sharp increase in the export of light oil products in 2020.
During a pandemic and the introduction of a quarantine
RISK MANAGEMENT
the demand for fuel has significantly decreased in
Kazakhstan. In this regard, we were provided with an
increased export quota. This is a temporary growth.
Satisfying the needs of the domestic market remains our
primary goal.”
ATTACHMENT
44
NORWAY
94.34
ABOUT THE REFINERY

FINLAND
NETHERLANDS
PORTUGAL
FRANCE GERMANY
SPAIN
4.05
RUSSIA 35.36
POLAND
BELARUS
EXPORT OF ITALY
PETROCHEMICALS AND UKRAINE
LIGHT PETROLEUM ROMANIA
PRODUCTS
RUSSIA
for 2020 (thousand tons)
NUR-SULTAN
BULGARIA
MONGO
Atyrau
44.29 thous. tons

LAKE
BALKHASH
AI-92 К4/К5 ARAL SEA
GEORGIA
Total: DT-K4/K5 TURKEY
ZHAMBYL REGION
ALMATY
Light petroleum
208.27 Paraxylol ARMENIA 46.15
products CASPIAN SEA
thous. tons
329.76 thous. tons
AZERBAIJAN
209.99 Benzene
RISK MANAGEMENT
KYRGYZSTAN
thous. tons Petrochemicals TURKMENISTAN
254.28 thous. tons SYRIA

UZBEKISTAN
CHINA
TAJIKISTAN
214.88
189.27
IRAQ
121.49
IRAN
thous. tons AFGHANISTAN
Comparative cost in USD Comparative cost in USD

Name
in 2019 in 2020
Paraxylol 510 266
SAUDI ARABIA
Atyrau Refinery LLP is the only manufacturer of
ATTACHMENT
Benzene 520 355 paraxylene in the territory of Kazakhstan. This NEPAL
petroleum product is an export-oriented petrochemical

PAKISTAN
Light petroleum products – AI-92, K4/K5, DT-K4/K5 feedstock, increasing the level of economic
Petrochemicals –paraxylol, benzene diversification.
46 47
ANNUAL REPORT 2020
ABOUT THE REFINERY

BUSINESS INITIATIVES
At the Implementation Stage
Business initiatives are the Atyrau Refinery’s new vector for the development. These are
new projects that should improve the plant’s activities and bring it to a new level. Out
of 11 business initiatives, two projects have already been implemented. The remaining 1. Automated System of Technical
nine will be implemented over the next few years. Accounting of Energy Resources
Implemented Projects
Target: reduction of the electricity
consumption by organizing an  Effect: savings will amount
to 5 % of consumed electricity
effective technical metering system, due to increased efficiency
using meters and power quality of electricity use in Refinery’s
1. Perfect Production control devices. Implementation of a technological processes.
system for collecting and analyzing
data on energy consumption and Project deadline – 2021.
Target: improve operational Effects achieved: quality parameters of the state
efficiency. Creation of an effective ■ Increase in the operational of electrical networks based on
system of interaction between efficiency indicators; the Schneider Electric software
the refinery management, line ■ Improvement of planning and package.
managers and production personnel management of the production
(Operational Rhythm™). program;
■ Improvement of the production
2. Advanced Technological Process
work; Control System (ATPCS)
■ Improving the level of
Implementation
the enterprise management.
RISK MANAGEMENT
Project Target – increase of the yield The content of light oil products in
of light oil products and reduce fuel oil has been reduced by 0.2 %, as
energy consumption. Improving well as the influence of the human
2. Spiral Planning
the consistency of quality indicators factor on the technological system.
and overall operational efficiency.
In 2020, the ATPCS will be
The production optimization catalysts, reagents, and calculating Effect: as a result of the ATPCS implemented at EDP ADVU-3, in
system based on Spiral software the best version of the production implementation at the EDP ADU-2 subsequent years – at AHP and DCRU.
was implemented in 2018–2019 as plan. unit, the spread in the technological
part of the digital transformation process decreased by 67 % for Project deadline – 2025.
program. The system allows
 Effect: reduction of variable gasoline, and 73 % for diesel.
ATTACHMENT
high-precision planning, taking operating costs.
into account the volumes of
loads, the yield of oil products,
the consumption of additives,
48 49
ANNUAL REPORT 2020
ABOUT THE REFINERY

3. Implementation of Engineering 5. Lean 6 Sigma –
Models Based on Hysys Software Lean Production
Target: creation of a tool for an

optimized technological mode of
concluded, and in the future, we will
sing an agreement with Aspen Tech
Target: creation of a culture of
continuous improvement and  Effect: reduction of operating
costs.
the units. for modeling secondary refining optimization of processes.
processes in the Hysys system. Project deadline – ongoing.
Hysys can help to accurately predict Solving complex issues through a
the performance of the plant’s units,
separate assemblies and apparatuses.  Effect: yield improvement.
Reduction: of electricity by
project-based approach based on
the use of statistical methods of
As of today, 2 Hysys software 0.1 %, steam by 0.2 %, reagents analysis to identify factors that have
licenses have been purchased by 0.5 %, catalysts by 0.3 %. a major impact on the process. Does
and installed. The plant personnel not require investment of funds.
passed the training. The optimization Project deadline – 2022.
planning department has started
modeling the primary settings.
A licensing agreement was
6. Computer Simulators
4. Burns and Losses Reduction Program
Computer simulation complex out under the supervision of

Target: improvement of gaseous one. Purchase of equipment fully simulates the workplace of instructors. In 2020, the development
the operational and energy efficiency for assessing and detecting leaks the enterprise operators. Thanks and implementation of 4 units of
of the Refinery’s processes. from processing units, replacement of to modern software, the simulator the plant was completed: catalytic
RISK MANAGEMENT
technically outdated furnace burners. accurately reproduces a specific cracking, CCR, PX. By 2022, we plan to
Repair and restoration measures, production process and is focused introduce Parisom, Prime-D, Sulfrex,
capital projects and modernization
are envisaged. Optimization of  Effect: reduction of burns by
1.88 %, losses by 1.35 %.
on the range of tasks performed by
operators. The civil aviation pilots
Naphtha HT.
technological processes and units, are trained at similar simulators. Effect: improving the qualifications
heat flows; cleaning, repair and Project deadline – 2024. of the plant personnel.
replacement of tank pontoons; CSC of Atyrau Refinery was created by
replacement of liquid fuel with Honeywell – the world’s application Project deadline – 2022.
software developer. The simulators
are installed in equipped classrooms.
The educational process is carried
ATTACHMENT
50 51
ANNUAL REPORT 2020
ABOUT THE REFINERY

7. 3D General Plan 7 NEW PROJECTS
The plant is working within the framework of a full-on renovation of
Target: creation of high-precision their subsequent accounting in MRO. the existing off-site facilities.
digital general plan using laser The digital twin of the plant is based
scanning method. on Aveva Net software. As of today, 7 main projects have been implemented: Arman, Bailanys, 5S, Zheti
56 % of the plant’s units have been Kazyna, Jańa Jol, Tazalyq, and BILIM.
Digital 3D general plan is a three- digitized. The plant personnel are
dimensional model of a real training to work with the system.
enterprise, which includes all its ARMAN Project
facilities and communications. It Effect: obtaining a modern tool for The main tasks of the project: formation of a space of
is based on an information model, accessing plant data. effective communications, activation of the creative activity of
which includes the amount of employees, motivation of people to achieve improvements and
required data and documents, as Project deadline – 2021. full disclosure of their potential, increase employee loyalty to
well as equipment parameters for the enterprise, increase labor productivity, attract and retain
valuable employees, develop and implement a single corporate
standard.
8. Energy Efficiency Increasing Program
DMITRIY Khvan
Target: reduction of energy
consumption.  Effect: reduction of energy
consumption by 9 %. Director of the Administrative Department
Graduated from the Almaty Management University with
As a result of this program for 2016– Project deadline – 2021. a degree Master of Business Administration. Diploma
2020, 15 out of 20 planned measures themework “Workspace Management”.
were implemented, about 6 % of
the total consumption of fuel and “The project is aimed at improving social and living
energy resources was saved. conditions for the plant workers, creating the most
RISK MANAGEMENT
comfortable business environment.
9. Equipment Maintenance and Repair Correct organization of workplaces, in terms of improved
interior, adequate setting of engineering communications
systems, equipping with modern and high-quality
Target: transition to an extended Effect: stable operation of units, furniture and office equipment is the most important
life between overhauls, equipment increase of oil refining volume, aspect of the enterprise’s business environment.
reliability. production of oil products by And creation of favorable living conditions has a positive
reducing the time for repairs. effect on improving the condition of workers during
working hours. That way we increase the efficiency of
Project deadline – 2022. work processes, contributing to the solution of the main
ATTACHMENT
task of the company – implementation of the production
plan.”
52 53
ANNUAL REPORT 2020
ABOUT THE REFINERY

Opening of Digital Museum of History and Labor Glory with an area of 166 m2
ARMAN Project in 2020
Opening of medical center on the basis of the medical unit of Atyrau RefineryLLP
Redevelopment of the central control room with a total area of 53.2 m2 completed
Reconstruction of 14 control rooms completed
Opening of coworking center at Atyrau Refinery LLP with a total area of 281 m2
Introductory briefing and OHS rooms of Atyrau Refinery LLP were opened with a total area of 131.2 m2
Renovation of the building DOMTSiKO at Atyrau Refinery LLP with a total area of 246.7 m2 completed
Medical Center
As part of implementation of apparatus, ALV apparatus. There

a long-term project of public- is a portable apparatus with an
private partnership between Atyrau oxygen concentrator, which will help Opening of Coworking Center Museum of History and Labor Glory
Refinery LLP and MEDIKER, we stabilize patients condition before
opened a medical center created on the arrival of the ambulance team, Realizing that the efficiency and In honor of the 75th anniversary of
the basis of the former health unit. and a ALV apparatus is installed in effectiveness of work processes is the enterprise, renovated Museum of
the pre-doctor room. ensured by motivated and qualified History and Labor Glory was opened.
All conditions have been created for personnel, we arranged a space
the provision of comprehensive and A drug dispensing point has been in the areas of unused premises The museum building was fully
qualified medical care. As a result opened, where the plant workers for personnel development and modernized and all communications
of the reconstruction, the medical will be able to receive the necessary self-training. On the basis of were replaced. A new exhibition
institution has been expanded, has medicines on prescription within the implemented iSpring platform, space has been created with a
modern equipment, and the staff has the guaranteed volume of free personnel training, progress tracking modern design of halls, multimedia
been supplemented with narrow- medical care. and analysis of results are carried equipment that allows interactive
RISK MANAGEMENT
profile specialties. out. Via a mobile application, excursions with updated content and
One of the advantages of the medical employees have the opportunity to exhibits.
Taking into account the current center is the formation of a unified train around the clock. The platform
coronavirus pandemic situation, medical information system that has access to a variety of personal In the reconstructed spacious
an isolation zone with a separate will provide fast service to the plant and professional development building, the logic and sequence
entrance has been created at workers. webinars, an electronic library and of the sections of the exposition
the medical center, where workers other training programs. have been preserved: from
will immediately be delivered in case Medical services covered 1,762 plant the construction of the plant during
of symptoms of COVID-19. workers and 2,554 family members the Great Patriotic War to the present
of the Company’s employees. time.
We purchased medical equipment:
ATTACHMENT
Chammed ENT workstation, In the historic hall, great attention
devices for electromagnetic and is paid to the establishment of
laser therapy, oxygen concentrator the enterprise.
54 55
ANNUAL REPORT 2020
ABOUT THE REFINERY

Special information stands allow and a countdown of the time until with modern furniture and household the former dispatch room did not
seeing all stages of the history and the 100th anniversary of the Atyrau appliances. All communications correspond to the level of technical
directions of the enterprise’s work, Refinery. are replaced indoors, the exhaust equipment of modern technological
labor successes and achievements of ventilation system and split systems complexes of the enterprise. Plus,
previous years. are installed. It should be noted the required capacities of the new
Completed Reconstruction of 14 that the capital repair of the control center assumed the expansion of
The modern hall tells about Control Rooms rooms is carried out according to a the space and equipping the systems
the modernization of the enterprise, single design within the frames of for visualization of the work
production safety, environmental and We understand that the premises the ARMAN Project. processes of the most important
social projects. Tours here can also be where the shift personnel involved local elements of the technology.
conducted in an interactive format. in maintaining the technological
Thanks to the electronic terminals regime of modern units spend Completed Modernization of
installed in the historical and modern most of their working time plays an Dispatch Center Opening of Introductory briefing and
halls, you can get information about important role in the employees’ OHS Rooms
the veterans of the Great Patriotic mood and they should feel As part of the project’s
War and the plant’s labor, about comfortable in the workplace and implementation, modernization We opened the rooms to conduct
the projects being implemented at have all the conditions for free of the dispatch center with an initial briefing for guests, visitors and
the Atyrau Refinery, and the social expression, communication and area of 53.2 m2 was carried out, employees of contracting entities.
policy. The scale of economic generating ideas. Taking into account the main task of which is centralized
activity of the Atyrau Refinery is that the production personnel is coordination of the activities of In the medium term, we planned
evidenced by the light map on which the locomotive of the enterprise’s all processing units of the plant. to replicate the ARMAN project to
the directions of cooperation with technological chain, it was necessary Response speed and resources the remaining facilities of the plant.
the countries are presented, and to plan the work premises in such a of the outdated equipment of
the stand “Products of the Plant”. way that they combine the space for
work, rest, eating. Besides, the repair
The photo gallery exhibits unique of the walls and ceilings in all
photos; there is also a capsule with control rooms there are arranged
a message to the future generation rooms for eating. They are equipped
RISK MANAGEMENT
ATTACHMENT
New PAH control room Dispatch Center
56 57
ANNUAL REPORT 2020
ABOUT THE REFINERY

Jana Jol BAILANYS
Jana Jol is an in-plant road reconstruction project. As part This is a project aimed at modernization of
of the project, in 2020, the AZS parking lot for 119 cars telecommunications networks. The main works were
and a bus stop were reconstructed. We also reconstructed completed in December 2019, the speed of the data
the Set Base parking lot for 434 cars. transmission network was increased. Managed switches
and new access points (Wi-Fi) were set. A backup core of
ATS was created, new IP-telephones and video conference
5S connection were introduced. A new digital ATS was
installed to support II-telephony.
5S – standardization of the workplaces. 5S is a system for
organizing a workspace (office) developed in Japan, which
creates optimal conditions for performing operations, TAZALYQ
maintaining order, cleanliness, tidiness, saving time and
energy. 5S is a lean manufacturing tool that has been The project provides for modernization of the wastewater
successfully introduced at Atyrau Refinery LLP. treatment plant, introduction of modern technological
processes and control systems for the consumption of
harmful substances. Thanks to the Tazalyq project, 70% of
Jeti Qazyna the treated wastewater can be reused at the plant.
Jeti Qazyna is a project aimed at creating a workwear center The project which started in 2019, will run until 2026. Main
and a centralized archive. All stages of the receipt of clothes works: construction of a precipitator block with gratings and
and shoes at the central warehouse, their release to workers, sand traps, construction of an equalizer block, construction
washing, dry cleaning, fitting and disposal are digitalized. So of a flotation unit, construction of a sludge treatment
that way, workers are promptly provided with the necessary block, reconstruction of aeration tanks, construction of a
PPE for the organization of safe working conditions in membrane bioreactor block.
the workplace.
RISK MANAGEMENT
In 2019, within the framework of the Jeti Qazyna project, ВILIM
the plant fully reconstructed one of the floors of the plant’s
Training Center and put into operation a new centralized The project is aimed at selection, training, preparation
archive room. With the new archive the documentation was and development of personnel. This project includes 13
systematized and properly recorded, conditions were created individual programs: electronic recruiting, an employee
for prompt search and familiarization with the required development program in the first year of his work,
documentation, the risk of loss of archival documents was industrial technical training, staff level of professional
eliminated, their security and fire safety were ensured. knowledge control, a computer training class, the General
MBA program, the Lean 6 Sigma program, English club,
Zhas Maman program, dual training, employee pool,
development of the Chemical technology of organic
ATTACHMENT
substances sub-faculty. Online courses for plant employees
have been implemented.
58 59
ANNUAL REPORT 2020
ABOUT THE REFINERY

Business process reengineering
PROCUREMENT PRACTICES
As part of the implementation of and measurements, process control
the Business Process Reengineering systems; Procurement activities in The procurement process includes:
Program of Atyrau Refinery LLP ■ ensuring the uninterrupted the Company are carried out in 1. formation, consolidation and
for the period of 2014–2018. operation of the technological and accordance with the following approval of procurement plans;
the staff of the auxiliary production dynamic equipment, maintenance standards: 2. selection of a supplier of goods,
facilities of Atyrau Refinery LLP (revision) and current repairs of ■ According to the procurement works and services;
were gradually withdrawn in the main, auxiliary and heat power management standard of the Joint- 3. conclusion and performance of a
the amount of 1,151 staff units. More equipment, metal structures, Stock Company National Welfare procurement contract;
than 20 outsourcing companies, buildings and structures; Fund “Samruk-Kazyna” and 4. formation and submission of
including Neftestroyservis LTD LLP, ■ comprehensive maintenance of organizations, fifty or more percent reports on the procurement
Enertek LLP, KAZTURBOREMONT the water supply and sewerage of voting shares (participation activities of the enterprise.
Service Center LLP, Gold Sunray LLP, facilities; interests) of which are directly
Mediker LLP, FAO “Ort sondirushi”, ■ provision of transport with service or indirectly owned by Samruk- Suppliers of the enterprise were
within the frames of the concluded vehicles and special equipment; Kazyna JSC on the basis of both residents and non-residents of
Contracts, timely and efficiently provision of fire protection and ownership or trust management. the Republic of Kazakhstan, including
■
provide the following types of fulfillment of the emergency ■ Procedure for procurement by domestic producers supplying goods,
services: rescue operations at the facilities; “Samruk-Kazyna” National Welfare performing works and rendering
■ operation, maintenance and ■ medical examination of Fund Joint-Stock Company services to ensure the uninterrupted
current repair of the electrical the personnel, maintenance of IT and organizations of fifty or production of the Refinery.
equipment and electrical systems, development of design more percent of voting shares
networks; estimates, provision of access (participation interests) of which
■ repair and maintenance of control etc. directly or indirectly belong to
the instrumentation and Samruk-Kazyna JSC on the basis of
automation, thermal automation ownership or trust management.
RISK MANAGEMENT
ATTACHMENT
60 61
ANNUAL REPORT 2020
ABOUT THE REFINERY

Seidualiyev Kanat
Director of the Procurement Department In the IV quarter of 2020, a training workshop was
organized for employees of the division responsible for
procurement and administrators of business programs on
“In 2020, despite the announced state of emergency and the regulatory documents of Samruk-Kazyna JSC and on
quarantine, associated with the coronavirus pandemic, the functions of the EPIS. Additionally, the Procurer Portal
the Company managed to provide the necessary goods, of KazMunayGas NC JSC is monitored on an ongoing
works and services for the production. basis. This work is carried out in order to reduce and
avoid procurement irregularities.
Appropriate measures to support the Kazakhstani
workers were included in the Procurement Management In 2020, the share of local content in goods amounted
Standard. When participating in a tender of up to KZT to 26 %, for works and services, the share of local content
500 mln, excluding VAT, the potential suppliers provided amounted to 69 %. The low share of local content in
a letter of guarantee for the preservation of the existing goods is due to the commissioning of new AHP and DCRU
jobs for the citizens of the Republic of Kazakhstan in complexes the equipment of which were exclusively
the territory of the Republic of Kazakhstan for the term of imported.”
the Procurement Agreement. In case of a tender for more
than KZT500 million (VAT exclusive) a warranty letter
was submitted to preserve the existing and creation of
new jobs for the citizens of the Republic of Kazakhstan.
Measures were taken to support the domestic

entrepreneurs. During the state of emergency,
the suppliers, which refused to fulfill their obligations
due to the quarantine measures, were not included in
the List of Unreliable Potential Suppliers.
During the procurement procedures, special attention
RISK MANAGEMENT
was paid to supporting the domestic producers and
increasing the share of local content in the purchased
goods. In this regard, in the presence of two or more
domestic producers, the priority “Among the producers of
the Holding” was set during the procurement procedures.
We also paid attention to the procurement of goods

according to the list of “Economics of Simple Things”
and the machine-building, chemical and pulp and paper
industries.
ATTACHMENT
AHP Operators
62 63
Sustainable
Development
69 Personnel Management
90 Environmental Protection
OPERATIONAL PROFIT
33,069.62
for 2020
mln
KZT
SAFETY
QUALITY
STABILITY
ANNUAL REPORT 2020
ABOUT THE REFINERY

The Atyrau Refinery implements Accordingly, KazMunayGas NC JSC Atyrau Refinery is aware of Economic component directs
the principles of sustainable has defined sustainable development the relevance of its impact on the Company’s activities towards
development in its activities in in its 2028 Development Strategy as the economy, the environment and growth of long-term value, ensuring
accordance with the Guidelines one of the strategic goals which is the society and strives for long-term interests of the Participants,
for the management system in aimed at integrating the principles value growth, ensures its sustainable increasing efficiency of processes,
the field of sustainable development of sustainable development into development while honoring increasing investments in creation
in the group of companies of key business processes, operational the interests of stakeholders. and development of advanced
KazMunayGas NC JSC. activities and decision-making technologies and increasing labor
processes. Sustainable development aspects productivity.
The mission of our parent company, and principles are integrated
KazMunayGas NC JSC, is to ensure Atyrau Refinery is also guided into the business processes of Ecological component ensures
maximum benefits for the Republic by the Concept of Sustainable the Company, in particular, into minimization of the impact on
of Kazakhstan from participation Development of KazMunayGas the decision-making processes. biological and physical natural
in development of the national oil NC JSC, which defines a single basis In the process of making any systems, optimal use of limited
and gas industry. KMG adheres to for sustainable development as an business decisions, the Company resources, use of environmentally
the principles of the United Nations integral part of corporate governance ensures consistency of its long-term friendly, energy- and material-
Global Compact1 and integrates at KMG, and also systematizes sustainable development economic, saving technologies, creation of
the UN Sustainable Development activities in the field of corporate environmental and social goals environmentally sound products,
Goals (hereinafter – SDGs2) in its social responsibility. which include, among other things, minimization of waste generation, as
activities, and also follows the 2028 the growth of the long-term value of well as waste recycling and disposal.
KMG Development Strategy. the plant.
Sustainable development of
the Company has three components:
Social Sector economic, environmental and social.
RISK MANAGEMENT
Admissible Fair
State State
Sustainable Development Aspects and Principles
integrated into the business processes of the Company,
Sustainable in particularly, in decision-making processes.
Development
Env Sec
In the process of making any business decisions,

Sec omic
the plant provides the consistency of their economic,

iro tor
tor
nm
environmental and social goals for sustainable

n
Acceptable
Eco
development in long term, which includes an increase in

ent
State
the long-term value of the plant.
la
ATTACHMENT
1
UN GC Principles: https://www.unglobalcompact.org/what-is-gc/
mission/principles
2
Link to 17 SDGs: https://www.un.org/sustainabledevelopment/ru/
sustainable-development-goals/
66 67
ANNUAL REPORT 2020
ABOUT THE REFINERY

Social component is focused on
social responsibility principles, which
Sustainable development
management system must be
PERSONNEL MANAGEMENT
include: ensuring labor safety and integrated across the entire Company
preserving the health of employees, in such a way as to balance short-
fair remuneration and respect for term and long-term interests
the rights of employees, personal and take into account economic,
Number of personnel, people
growth of personnel, implementation environmental and social aspects The organizational structure of
of social programs for personnel, in the decision-making process. the Atyrau Refinery is constantly 2018
1,685
creation of new jobs, sponsorship. In accordance with the Samruk- improving, taking into account 1,690
Kazyna’s Reference Model, the requirements and standards 2019
Effective interaction with the introduction of sustainable of the KMG corporate governance. 2020
1,682
stakeholders through development into key processes is Competence and authority of

the implementation of a system of ensured through their integration in the structural divisions are 1,600 1,700
planned and sequential activities is three areas: clearly delineated and fixed in
one of the key factors for achieving ■ Strategic integration – inclusion the Provisions, job descriptions At the end of 2020 1,682 employees
the Company’s goals. of sustainable development into and internal instructions for work work at the Atyrau Refinery. Middle
planning processes. management. the age of the workers is 38.9 years,
The Company’s interaction ■ Operational integration – all including administrative efficient
with stakeholders is based on corporate decisions are made by In order to reduce the negative management personnel – 41 years
the following principles: the management of the Atyrau impact on business, due to old, production staff – 38.7 years.
■ respect and consideration of Refinery based on the criteria the COVID-19 pandemic, an Youth under the age of 30 years –
interests, opinions and preferences of compliance with sustainable optimization of the business 388 people, which is 23 % of the total
of stakeholders; development principles and goals. processes was carried out, with number of the plant employees.
■ timely and regular informing of ■ Cultural integration – changing the reduction in the number of
stakeholders; the mindset of the Company’s the administrative and managerial
■ responsible fulfillment of employees. staff.
obligations assumed.
Personnel structure at the end of 2020
RISK MANAGEMENT
Structure by
Structure by age
Total gender
Indicator
(people) up to 30 30–50
male female over 50 years
years years
Total number of personnel 1,682 76% 24% 23% 57% 20%
Board 5 60% 40% 0% 40% 60%
Administrative and management
124 31% 69% 11% 66% 23%
personnel
In leadership roles 55 44% 56% 4% 65% 31%
Specialists 69 20% 80% 22% 62% 16%
Production personnel 1,558 79% 21% 24% 56% 20%
ATTACHMENT
In leadership roles 144 84% 16% 8% 67% 24%
Workers 1,414 79% 21% 26% 55% 19%
68 69
ANNUAL REPORT 2020
ABOUT THE REFINERY

Zhailasheva Assel
Head of the HR Division In 2020, a new medical center was opened on the basis of
the health unit, which is equipped with the necessary equipment
“2020 has become a strategically important milestone for (even ALV) and medical personnel, including highly specialized
us in solving the primary task of attracting and retention experts. Now our workers have access to comprehensive medical
of the qualified personnel in production. Gradually, step care.
by step, we overcame the tendency of the perception
of the plant by the workers as a starting platform for We reconstructed the Central Canteen to improve working
the further employment in other large companies in conditions and installed new equipment, such as an electronic
the region. And today we can say that we have brought registration system with electronic passes.
up a qualitatively new core team of young people,
ambitious and promising specialists for whom the Atyrau 2020 due the coronavirus pondemic made us focus on employee
Refinery has become a symbol of growth, safety, quality, welfare even more than usual. Our task was to ensure the safety
stability and strong corporate culture. of our employees, to support them, and to keep the production
facilities operating. About 90% of the administrative and
These are the main steps for 2020: managerial personnel switched to remote work. The plant has
ྲ implementation of a large-scale BILIM Project, consisting of 13 plant provided the necessary sanitary standards, developed new work
personnel development programs; schedules, and limited reception of visitors. At the expense of
ྲ procurement and implementation of the unique computer training the company, PCR testing and computed tomography were
complexes of Honeywell Company – simulators of three technological carried out.
plant installations for practical training of the employees to control
them, including in an emergency situation; All the measures taken provided stable activities of
ྲ Launch of a platform for online training of the plant employees the production management for the plant to preserve economic
iSpring Learn, which is loaded with 50 training courses to help you stability of the state during the specified period.
improve your professional skills. Each course includes a video tutorial
and tests. Access to materials is open 24 hours a day; We add that in 2020 the Social stability index, reaching 85%. This
ྲ Opening of the Institute of Petrochemical Engineering and Ecology speaks of the fact that the employees generally positively assess
RISK MANAGEMENT
on the basis of S. Utebaev Atyrau University of Oil and Gas, where the actions of the management in the HR sector.
the future personnel of the Atyrau Refinery are being forged.
New laboratories are available to the students with professional The result of the work done was that the fluidity of
equipment, computer training classes and other necessary tools for the professional staff at the plant decreased by 37% in 2020
high-quality professional training; as compared with 2019. This is our little victory, and we will
ྲ introduction of an electronic recruiting system, providing transparent continue to move on in the same direction.
and efficient recruiting processes. Data collection, testing, interview,
responses based on the interview results and so on – everything in In 2021, our main focus will still be the development of
electronic format. personnel training and knowledge assessment with 100%
coverage of the Refinery’s workers.”
In addition, we continue to improve social conditions at the factory.
ATTACHMENT
70 71
ANNUAL REPORT 2020
ABOUT THE REFINERY

Changes in the Remuneration System of the approved key performance
indicators (KPIs) of executives – Dostanova Gulnar
In order to increase the material members of the executive body of Head of the Division of Labor Organization and
interest of employees, increase the Company. Remuneration
the efficiency of production and
economic activities, as well as At the end of 2020, the growth of “Since 2019, Atyrau Refinery LLP, together with
strengthen labor and production the average monthly wage in Atyrau NC KazMunayGas JSC and with the involvement
discipline, we have introduced Refinery LLP was 10 % as compared of the project group of PetroKazakhstan Overseas
changes to the system of monthly/ with 2019, which is by 45.9 % higher Services Inc. (hereinafter – PKOSI), began
quarterly bonuses. The Bonus than the indicators for the Atyrau the development of a new pay system, based
Committee, a collegial and advisory region. on the graded system. The choice of the project
body, has been created and functions group was not accidental. A similar graded
on a regular basis, the main task of In order to keep the remuneration remuneration system exists at a related enterprise –
which is to assess implementation of system competitive in comparison PetroKazakhstan Oil Products LLP (PKOP), a
the planned key efficiency indicators with the main employers in the labor subsidiary of PKOSI.
(hereinafter – KPEs) of the structural market of Kazakhstan, to motivate
units. All approved indicators and incentivize employees for work The main goal of the Project is to implement a wages structure, which
reflect the efficiency of a particular results, personal achievements will be competitive at the local level and will allow the Partnership to
structural unit and are an indicator of and contribution to the Company’s attract, retain employees and provide internally fair wages.
the collective work of the unit. activities, an increase in official
salaries/monthly tariff rates is During the Project implementation:
Moreover, the work of each envisaged from 1 January, 2021. ■ all positions of Atyrau Refinery LLP were assigned by grades;
employee is assessed according ■ an analysis of the wage market in the energy sector of West Kazakhstan
to the individual parameters of Based on the funds provided for in was carried out;
the fulfillment of the set goals, the budget, based on the results ■ the structure of wages was formed;
compliance with requirements of of assessing the staff performance ■ each grade is assigned a level in the pay structure.
internal regulatory documents, etc. for 2020, a wage program for 2021
Key indicators of heads (managing was formed with the individual Since January 1, 2020, the stage of introducing the new wage system has
RISK MANAGEMENT
director, director of a department, parameters for increasing begun.
head of production, division, service) the tariff rates/official salaries of
are cascaded from the objectives the employees. The grading system made it possible to establish both internal and
external fairness in remuneration, depending on the complexity of
New types of salary markup the work performed and the employee’s contribution to achieving
Share of the total the strategic goals of the enterprise.
Markup type amount
production personnel, %
for the complexity of unit servicing 7%, 15% 57% Due to changes in the remuneration system, the growth of official
for work on the control panel 7% 8% salaries/monthly tariff rates to the level of 2019 amounted to:
project markup ■ workers – 16 %;
up to 20%
(for the period of project development and implementation)
■ production managers and specialists – up to 39 %;
ATTACHMENT
market markup
up to 30% ■ administrative and management personnel – up to 7 %.”
(for attracting and retaining staff)
72 73
ANNUAL REPORT 2020
ABOUT THE REFINERY

Provision of social benefits, ■ material assistance for
compensations and guarantees anniversaries (50, 60 years);
■ additional payment to
At the end of 2020, all employees the allowance for temporary
of the Company are covered incapacity when the employee is
by the Collective Employment on sick leave for more than one
Agreement. In accordance with month in a row;
the Collective Employment ■ material assistance in other cases
Agreement and the Rules for by decision of the Board of Atyrau
provision of social support to Refinery LLP;
employees of Atyrau Refinery LLP in ■ payment of maternity leave based
order to create appropriate social on the average salary minus
conditions for working with maximum the amount of social benefits
dedication, affecting production in case of loss of income due to
efficiency, a guaranteed social pregnancy and childbirth;
package is provided for employees, ■ payment of social and educational
which includes a list of benefits and leaves;
social payments: ■ meal allowance for employees;
■ annual one-time health ■ partial compensation for the cost
improvement allowance for labor of summer vacations for employees’
leave; children;
■ one-time payment upon ■ monthly partial compensation to
termination of an employment employees with preschool children;
contract if it is impossible to ■ one-time material assistance
continue working for health to employees with school-age
reasons; children;
■ one-time payment upon ■ partial compensation of rental
termination of an employment expenses for specialists in
RISK MANAGEMENT
contract upon reaching retirement the rotation program, invited
age; workers;
■ voluntary medical insurance; ■ housing program.
■ material assistance for arranging
a funeral in connection with Social package for 1 employee at
the death of an employee/ the end of 2020 amounted to KZT
employee’s close relatives; 1,243.19 thousand, which is by 8.1 %
■ material assistance to the family of higher than that of the same period
an employee who died as a result in 2019.
of an industrial accident;
■ material assistance in connection Along with measures for social
ATTACHMENT
with conclusion of a primary support of employees, social benefits
marriage by an employee; and payments to non-working
■ material assistance in connection pensioners – former employees of
with the birth (adoption) of a child; the Atyrau Refinery are also provided.
74 75
ANNUAL REPORT 2020
ABOUT THE REFINERY

As part of measures to prevent antibodies to COVID-19 and express
COVID-19 coronavirus infection, we tests at the expense of Atyrau
signed an agreement with the Olymp Refinery LLP. MBA program
Clinical Diagnostic Center to training
Formation of a
Lean 6 Sigma
program
provide services for the detection of In order to ensure the availability Сomputer simulator
strategic vision Training specialists in
and a systematic the methodology of
English Club
COVID-19 virus RNA from biological of medical care for employees complexes understanding of lean production
Training of operators on the business
the CSC for practical
Development of
material by PCR test. On the basis who have suffered or are suffering skills in conducting
the technological
processes of
production
technical English for
employees
of the agreement, all employees from acute infectious diseases, EPKLC program
process Zhas Maman
Training young specialists
switching back from the remote we concluded an agreement with Еmployee professional
knowledge level
for the main plant
professions among school
mode of work, as well as those Orion Medicals LLP for computed control graduates
returning to work from annual labor tomography (CT) of the lungs at an

Production
d techni
Annual traini cal training Dual education
leave pass PCR tests to determine the expense of the Atyrau Refinery. Adaptation
ng of perso
program
nnel Combination of theoretical
knowledge of students
Newly empl and practical skills in
oyed employ
training ee
production
Professional Growth Employee

development program
Talent pool
Training of key
in the 1st year of his employees
Employee training indicators employment
In 2020, the total number of people
4 000
3,972 250
288.6
who took part in training seminars, 3 500 Electronic recruitment
Development of the
chair of “Organic matters
continuing education, training and 2,846 200 Modern system

chemical technology”
13 directions
Cooperation with Atyrau
3 000 of staff selection
172.8 2,429 University of Oil and Gas
retraining courses amounted to 2 500 2,286 150
139.7 146.2
3,972 people. Of these, 3,539 people 2 000 for development of the Atyrau Refinery staff
were trained in compulsory training 1 500 100
programs, that is, on average, one 1 000

50
employee was trained in 3 (three) 500
programs, mainly online. 0

2017 2018 2019 2020
0
Number of trained employees

In 2020 an orientation program Costs, mln tenge (first scale)
for newly employed personnel was Lean 6 Sigma
RISK MANAGEMENT
updated to help them to adapt BILIM project covers 13 Atyrau
to the work conditions at the Refinery staff development programs, In order to regulate business trained, 5 “green belt” people
enterprise.Currently, the adaptation of which the most ambitious, processes and reduce all types underwent theoretical training.
program is being implemented courageous and innovative are Lean of defects and losses through
online in the form of video tutorials 6 Sigma, “Zhas Maman”, cooperation the sequential implementation of Currently, a total of 36 people were
and presentations. Knowledge with universities, dual training projects to eliminate the root causes trained in the level of “green belts”,
assessment is carried out by testing. and control level of professional of defects based on quantitative 10 people of which have raised
knowledge (CLPK) research, the Lean 6 Sigma their level to “black belts”. In 2020, 3
project has been implemented at specialists began training as “black
the enterprise since 2016. belt masters”.
ATTACHMENT
Under the program for 10 people were trained under
implementation of the Lean 6 Sigma the HYSYS program “Modeling of
project at Atyrau Refinery LLP in technological processes”.
2020, in addition to those already
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Zhas Maman Program and highly qualified workers are In 2020, we signed the 15 year-term
assigned to them, compensation Agreement on mutual cooperation
In 2020, at the expense of As part of the ZHAS MAMAN costs are paid on the basis of a time with the NJSC S. Utebayev Atyrau
the enterprise and under the Zhas program development and in order sheet in the amount of 1 minimum University of Oil and Gas. Within
Maman program: to motivate the best students of salary (KZT 42,500 per month). the framework of this agreement,
■ I.M. Gubkin Russian State the S. Utebayev University of Oil we established the Institute of
University of Oil and and Gas of Atyrau city and their However, since March 2020, due to Petrochemical Engineering and
Gas – 7 people; future employment, the program the COVID-19 pandemic, the practical Ecology on the basis of the university.
■ Ufa State Petroleum Technological for awarding Atyrau Refinery LLP training of dual education students
University – 2 people. scholarship has been resumed. has been suspended. Our Institute covers the following
In 2020, 8 students of S. Utebayev educational programs:
continued their education in University of Oil and Gas passed If the epidemiological situation ■ Chemical Technology of Organic
the main plant’s specialties. competitive selection for the plant’s improves, we will continue training Substances;
scholarships. young specialists in the dual training ■ Machinery and Equipment of Oil
system. and Gas Industry;
■ Life Safety and Environmental
Cooperation with Universities Protection.
In order to train specialists to work ■ specialists of Atyrau Refinery LLP
at the plant’s technological units in participate in the coordination of EPKLC PROCESS – Employee Professional Knowledge Level
the main specialties of the chemical the subjects of term and diploma Control
and technological profile, Atyrau papers (projects) of students, and
Refinery LLP continues cooperation also participate in the qualification
with 9 leading technical universities commissions for taking exams Employee Professional Knowledge each stage, high and low indicators
and three higher educational and presenting final qualification Level Control (EPKLC) is held of the level of professional
establishments in the cities of Atyrau, works (diploma projects); quarterly. It helps to identify and knowledge of the personnel
Almaty, Astana, Uralsk and Shymkent. ■ specialists of Atyrau Refinery LLP compare the previous and current were identified. To eliminate
take part in online conferences, level of knowledge, to ensure growth, the identified insufficient knowledge
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Within the framework of social Open Days, Job Fairs and other or stop in place or lag in certain of employees, mentors from among
partnership, the following activities similar events aimed at expanding parameters. the internal coaches who have
are held online: cooperation; undergone mentoring training
■ the plant managers participate in ■ professors and masters of In 2020, 3 stages of testing were and highly qualified specialists of
meetings of the School Boards of industrial training undergo carried out as part of the EPKLC the partnership are assigned to all
educational institutions; training in the subdivisions of process. According to the results of employees in the “red zone”.
the plant.
Development zones 2019(fact) 2020(fact) 2021(target)
85–100% (green zone) 12% 28% 40%
DUAL EDUCATION Program 50–85% (yellow zone) 70% 70% 60%
ATTACHMENT
0–50% (red zone) 18% 2% 0%
We implement dual training Students are provided with workwear,
program to train young specialists in personal respiratory protection,
production conditions. mentors from among experienced
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AMOZ.ispringlearn online learning portal (AMOZ Learn) In 2020 the training of 20 continued. 3 specialists are trained
promising employees who make under the Master of Business
In order to train and develop ■ Multimedia training complex for up the talent pool of the enterprise Administration (EMBA) program
the employees of Atyrau Refinery LLP, primary oil refining (EDP ADU-2, under the General MBA Master of Energy Leadership at the I.M. Gubkin
online training portal iSpring Learn EDP AVDU); Business Administration program Russian State University of Oil and
was launched, where the following ■ Courses on the Atyrau Refinery in the Atyrau branch of the Almaty Gas.
was downloaded: projects; Management University was
■ Video courses of on-boarding ■ 100 books for self-development;
program; ■ Technical regulations for all units
■ 37 self-development courses; of the plant. Social Stability Rating
At the end of 2020, the Social Stability Social Stability Index
CSC – Computer Simulator Complex Index amounted to 85%. Compared
to 2019, the index grew by 11 p.p. 2018 66%
The CSC acceptance test was Training in the computer simulator Growth of the index is the result of a 2019 74%
completed in cooperation with complex consists of a program change in the engagement index by
Honeywell in 2020. As a result, a full- for practical work and theoretical +20 p.p., the social calmness index by 2020 85%
featured computer simulator was training. Operators of the control +24 p.p. 0 100
implemented for a similar DCS for panel, operators of processing
catalytic cracking (RFCC), catalytic units, operators of pumping and
reforming (CCR) and aromatic compressor installations are trained.
hydrocarbons (PX) units. The civil
aviation pilots are trained at similar In 2020, 43 employees of catalytic
simulators. cracking and 30 employees of
catalytic reforming were trained on
The key goal of the computerized the simulator.
simulator complex is to minimize
production failures associated with
RISK MANAGEMENT
human factors.
Talent Pool Program

One of the priority directions of Trainings for all reservists are carried
the Atyrau Refinery’s Personnel policy out with the participation of the best
is the talent pool training, which Kazakhstani coaches and are aimed
includes the search and identification at developing personal and business
of young and promising leaders in competencies and professional skills.
order to train managers of a new
ATTACHMENT
format with the required professional
competencies.
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Countering the Pandemic Support for young professionals
In the spring of 2020, the Atyrau people are provided with disinfectant For many years, the Atyrau Refinery which were the employees who
Refinery strengthened safety and dispensers. The frequency of wet faced an acute problem of staff made a significant contribution
preventive measures in order to cleaning with the use of disinfectants turnover. It was a talent pool for to the development of the Atyrau
prevent the plant workers from in all buildings and premises has large industrial enterprises in Refinery and promising specialists in
contracting coronavirus infection. been increased. Vehicles involved in the region. Dozens of trained workers new industries.
the delivery of personnel are also from among the qualified specialists
Receptions of visitors by deputy treated with disinfectants. were leaving the plant. To solve this Thus, 101 employees of the plant
general directors, managing directors problem, it was necessary to apply received the keys to new apartments
and heads of structural divisions From 17 March, 2020, a flexible cardinal solutions. in the Victory Park residential
have been limited, and the number working time regime for daytime, complex in the oil capital. The house
of meetings and cultural events engineering and technical and Following the intended goal of where the new settlers have arrived
has been reduced. A moratorium administrative personnel has been reducing the outflow of specialists, belongs to the “comfort +” category
has been declared on business trips introduced with the condition the Atyrau Refinery in 2020 began of housing. It is located in the most
outside Kazakhstan for employees of that the length of the working day implementing projects for the social picturesque and environmentally
the Atyrau Refinery and outsourcing is maintained as provided for by support of the qualified specialists, friendly part of the city on
companies staying on the territory the employment contract. 228 people on whom the successful development the embankment of the Ural River,
of the plant. Off-site training courses were transferred to the remote and prosperity of the plant in the Victory Park area. Comfortable
and seminars are prohibited until regime of work. depended. In particular, a corporate 1-4-room apartments have an area
specific guidelines are received. All housing program was successfully of 49.96 to 124.34 square meters and
trainings of the plant’s employees Movement of workers across implemented, the addressee of are completed on a turnkey basis.
in sports complexes have also been the territory of the plant between
suspended. structural divisions is limited.
Responsible employees have been
The daily meetings chaired by appointed in each structural unit to
the General Director and his deputies transfer information on paper.
were conducted via telephone and
RISK MANAGEMENT
video conferencing. The heads of We installed thermal imagers at
production services and outsourcing the checkpoints of the plant and
companies carried out explanatory purchased 20 remote thermometers.
work among the workers. We also created the “sanitary filter”.
We purchased medical masks, The plant’s health unit has developed

antimicrobial hand gels, an action plan in case of finding
disinfectants. Sanitary facilities, symptoms of coronavirus infection in
meal rooms, control rooms and workers.
other places of constant presence of
ATTACHMENT
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Implementation of the housing program
Opening of the Institute of The solemn opening of the Institute
Received apartments
Received housing loans
Received apartments
Total Petrochemical Engineering and of petrochemical engineering and
in the RC «Victory Park» from the secondary fund
Ecology ecology on the basis of S. Utebayev
101 persons 28 persons 13 persons 142 Atyrau University of Oil and Gas took
In October 2020, an Agreement on place on December 15, 2020
A quality infrastructure for Thanks to the adopted housing mutual cooperation was signed with
recreation and a healthy lifestyle program, 142 plant workers are the S. Utebayev Atyrau University
has been created in the territory provided with their own apartments of Oil and Gas for 15 years, which
of the residential complex. An in Atyrau. The efforts of the Atyrau implies compulsory training of
underground parking is provided in Refinery to provide the workers with the qualified specialists on the basis
the yard. the most comfortable living and of modern teaching tools, techniques
working conditions resonate with and information technologies within
In addition, the Atyrau Refinery the plant workers, which makes it the frames of the educational
offers the young professionals, which possible not only to retain our own, programs for professions, relevant to
are 30 % of the factory workers, an but also to attract new qualified the Atyrau Refinery.
interest-free loan for the purchase specialists from other large oil
of housing. ForteBank acted as and gas enterprises in the region. Within the frames of cooperation
the Atyrau Refinery’s partner in By the way, the number of employees with the financial support of
the implementation of this program. who left the plant on its own the Atyrau Refinery, classrooms
In 2020, 28 people received housing initiative, decreased by 37 % in 2020 and laboratories with a total area The institute trains bachelors and
loans totaling KZT 402.8 million. as compared with 2019. of 3,300
sq. m were renovated. masters in the following educational
13 people bought apartments from Moreover, the material and technical programs:
the secondary stock. base of the former Department of ■ “Chemical technology of organic
Chemistry and Chemical Technology, substances “;
the 3rd and 4th floors of one of ■ “Machinery and equipment for Oil
the buildings of the university were and Gas Industry “;
completely modernized (renovation ■ “Safety of life and environmental
of the lecture halls and chemical protection”.
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laboratories, furnishing with furniture
and equipment). 12 new laboratories, equipped
with modern equipment for
the development of practical skills
by the students in the application of
physical and chemical methods of
analysis in the processes of studying
oil, gas and their products, were
opened. In particular, the company
AVC Group with the support of Atyrau
Refinery LLP plans to equip one
ATTACHMENT
laboratory with high-precision gas
analyzers.
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ABOUT THE REFINERY

The Atyrau Refinery equipped Under the patronage of the Atyrau Labor Union
the Institute with the unique Refinery, the Institute has become
computer simulator complexes a unique educational center for
(CPC) – the prototypes of training engineers in the demanded
the catalytic reforming installation specialties of the oil refining and Amanturlin Galimzhan
of Axens Company, which makes gas chemical industries. Offline and Chairman of Branch of the Public Association
it possilr to train the specialists online lectures for the students “Industrial Labor Union of Employees in
in the field of oil refining for all are delivered by the professors of the Chemical, Petrochemical and Related Industries”
three Rrefineries of the Republic I. Gubkin Russian State University., Labor union organization of Atyrau Refinery LLP
of Kazakhstan. There are no St. Petersburg State University, Ufa
analogues of these simulators in State Scientific Technical University
the Universities of Kazakhstan. and leading process engineers of
the Atyrau Refinery. Local teachers in “Ensuring social stability is the main task of
Besides, Honeywell provided the frames of the specially designed the primary labor union organization of Atyrau
the Institute with one more programs will undergo internships at Refinery LLP. The labor union work of the enterprise
computer simulator complex for the Atyrau Refinery. is directed by the Labor Union Committee. The Labor
the basic processes and apparatuses Union Committee of the plant is a branch of
of chemical technology and One of the advantages of studying the public association of the Labor Union of
installations EDP AVDU. in this Institute is an employment employees in the chemical, petrochemical and
prospect for its graduates, namely by related industries. There are 3,078 people registered,
Atyrau Refinery. including 655 retirees and members of the labor
union of outsourcing companies. In each production
and division, and outsourcing companies there is a
Workshop Committee headed by the Chairman.
The main document for the protection of social,

labor and professional rights and interests of
the members of the Labor Union is the Collective
RISK MANAGEMENT
Agreement between the administration of the plant
and the labor collective. One of the main aspects
of the Collective Agreement is to maintain a decent
level of wages. Despite the difficult period in 2020,
the wages were paid to employees in full and on
time. There is no wage arrears to the employees”.
ATTACHMENT
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A conciliation commission on labor
disputes has been established and
operates at the plant.
The Labor Union Committee

allocates the necessary funds from
the labor union budget to provide
material assistance to workers in
dire need and retirees – former
workers of the plant in agreement
with the Board. Constant assistance During the pandemic, the labor
is provided to the women’s union organization donated two
council, the council of veterans, artificial lung ventilation devices
the council on youth affairs, for (ALV) to the plant medical center
the implementation of activities to support the efforts of the plant
for the development of mass management to ensure the health of
physical culture and sports, health- the employees.
improving work, the development
K. Primkulov’s visit to the medical center
of the creative potential of workers, Portable ALV have 4 kg oxygen
the encouragement of participants cylinders. One of them was installed
in amateur performances. The Board in the isolation zone, and the other
and the Labor Union Committee in the ambulance. The modernized
actively cooperate in matters of medical center was visited by
protecting the health of workers, the Chairman of the Industrial labor
ensuring safety, improving working Union of Chemical, Petrochemical
conditions. At the Labor Union and Related Industries K. Primkulov
Committee, technical inspectors for and praised the work of the plant’s
labor protection are actively working. management and the labor Union
RISK MANAGEMENT
to create decent working conditions
In 2020, the Labor Union, together for the plant employees and protect
with the Atyrau Refinery, carried out their health.
significant work to create favorable
working conditions for all plant In 2020, at the suggestion of
employees. In particular, the Central the labor Union, for the first time,
Canteen was repaired, parking 20 veterans of the plant were
lots and internal plant roads were awarded the “Enbek ardagery” medal,
asphalted, and workshop premises and 50 veterans were awarded
were repaired. an anniversary medal in honor of
the 75th anniversary of the plant.
ATTACHMENT
Besides, the “Hall of History and
Labor Glory of the Atyrau Oil G. Amanturlin presents the medal “Enbek ardagerі” to Yu. Shkodin
Refinery” was modernized.
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ENVIRONMENTAL
PROTECTION
Mursaliyeva Zhanna
Head of the Environmental Protection Division
“Atyrau Refinery is an environmentally oriented We filled in the plant data in a web application to obtain
company and our main goal was and remains to an expert assessment of the enterprise’s technological
prevent unplanned and unauthorized emissions processes for compliance with the principles of
into the atmosphere, with wastewater, as well as Kazakhstani BAT.
production and consumption waste. We adhere to a
policy of rational use of natural resources, including In order to continuously monitor the quality of pollutant
controlled water use, electricity, separate collection emissions from the production facilities of the Atyrau
and disposal of waste. In its paperwork management, Refinery, a pre-project survey was carried out in 2019
the plant minimizes hard-copy document workflow by to introduce an automatic monitoring system (AMS)
switching to electronic workflow, thereby participating at the main sources. In 2020, we started developing
in the preservation of forests. In our production process a project for the introduction of AMS for emissions of
we always comply with the norms and requirements of pollutants at the main sources, and this year we are
environmental legislation. planning to complete these works.
Over the past year 2020, in connection with It should be noted that the Atyrau Refinery has an
the adoption of the new Environmental Code of the RK, environmental monitoring system, which includes
RISK MANAGEMENT
the plant carried out work to assess the compliance four automatic air quality control stations located
of its production activities with the newly introduced on the border of the plant’s sanitary protection zone,
environmental requirements. which determine the main pollutants in the air. These
automatic stations conduct 24/7 observations on
As part of development of a technical reference book the content of pollutants in the atmospheric air for
on BAT in 2020, IGTIPC (Center for Green Technologies), the following indicators: hydrogen sulfide, carbon
together with national and international experts, monoxide, nitrogen oxides, sulfur dioxide, hydrocarbons.
on behalf of the Ministry of Ecology, Geology and In 2021, we are planning to equip the eco-posts
Natural Resources of the RK (MEGNR RK) conducted with gas analyzers for benzene, toluene, paraxylol
a comprehensive technological audit of the plant. and ethylbenzene. Reports are transmitted hourly to
According to the preliminary audit data, the Atyrau the server of the RSE Kazhydromet with subsequent
ATTACHMENT
Refinery’s technologies correspond to the BAT RF and EU integration into the AirKz application and broadcasting
reference books. of data on the LED screens of the city and the plant to
inform the population. The Atyrau Refinery carries out all
90 91
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of its emissions into the environment in accordance with
a permit for emissions into the environment issued by
the Committee for Environmental Regulation and Control
of the Ministry of Ecology, Geology and Natural Resources
of the Republic of Kazakhstan, and accordingly makes tax
payments.
Furthermore, we pay attention to the issues of

landscaping and planting of the territory adjacent to
the Refinery. Today, the total area of landscaping and
planting of the sanitary protection zone of the Refinery
is 224 hectares, 126,270 trees and shrubs have been
planted. We replant the zoned seedlings annually in
the amount of about 12 thous. pieces.
We concluded a long-term contract (5 years) with a
specialized organization for maintenance of green spaces
of the sanitary protection zone for a total of KZT 968,263
thousand.
The Refinery also plans to improve and plant trees on

the territory on the western side of the plant with an area
of 32 hectares, which was vacated after the resettlement
of residents. This territory has been cleared of garbage,
the remaining buildings have been dismantled, and
the area has been planned.
RISK MANAGEMENT
To improve the environmental situation in Atyrau city in
2021, the plant is implementing the TAZALYQ program,
within the framework of which measures are provided
for modernization of mechanical treatment facilities and
reclamation of evaporation fields (Rotten Draw Pond).”
Evaporation fields “Rotten Draw Pond” (Border dyke)
ATTACHMENT
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Management Philosophy minimization of harmful effects, ■ Control and analysis of
taking into account social and the enterprise’s activities
The Atyrau Refinery knows the documented procedure, as economic factors. with the aim of continuous
the importance and establishes well as receiving feedback from all ■ Identifying, eliminating or improvement of systems in
the work and development of stakeholders. controlling and minimizing the field of quality, health
systems in the field of labor and potential health and safety risks protection, labor safety, energy
environmental protection, quality The Atyrau Refinery has the following to workers, contractors and efficiency and energy saving,
management, energy efficiency and obligations: the public. environmental protection.
energy saving. ■ Compliance with laws and ■ Supporting the procurement
other regulations applicable to of energy efficient and In order to improve
The priority areas in the field the plant’s operations, as well as environmentally friendly goods the environmental situation in
of environmental protection of international standards in the field and energy efficient works and Atyrau, the Atyrau Refinery is
the Atyrau Refinery are: of quality management, health and services. implementing the TAZALYQ project,
■ management of emissions of safety, environmental protection, ■ Improving the effectiveness of the main task of which is to minimize
pollutants and greenhouse gases; energy efficiency and energy monitoring on quality control, the environmental impact from
■ water resources management; conservation. labor protection, energy efficiency the plant’s activities. The project will
■ improving energy efficiency; ■ Ensuring the availability of and environmental aspects to have a significant environmental
■ production and consumption information for measurement identify problems and further effect by bringing the quality of
waste management. purposes of the integrated setting goals and objectives, wastewater treatment up to standard
management system. and their achievement to ensure indicators. Plus, the project provides
We achieve this goal by introducing, ■ Ensuring the highest possible the sustainable development of for the reclamation of the existing
maintaining in working order and measurement of effectiveness the Company. evaporation fields with restoration
constantly improving the following of the existing integrated
control systems: management system in order to
■ quality management systems in monitor and improve it, as well
accordance with ISO 9001:2015 as the associated availability
standard; of reporting and controlling
■ environmental management information.
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systems in accordance with ■ Providing employees and
ISO 14001:2015 standard; contractors with a safe working
■ occupational health environment and forming a
and safety management responsible attitude among
systems in accordance with employees towards quality
OHSAS 18001:2007 standard; management, environmental
■ energy management systems in protection, energy efficiency and
accordance with ISO 50001:2011 labor protection.
standard. ■ Compliance and fulfillment
of consumer requirements for
Continuous improvement of the quality of the oil refining
ATTACHMENT
management systems is ensured by process with high responsibility.
regular monitoring of these systems, ■ Control and prevention of Visit of the Minister of Ecology M. Mirzagaliyev
the need for periodic revision of environmental pollution,
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of the soil cover and laying of a pollutants with wastewater – 12,020 Last year, the Atyrau Refinery team the akimat of the Atyrau region
pipeline instead of an open channel tons with a limit of 23,231 tons. performed additional landscaping and Atyrau Refinery LLP is going
for normatively treated wastewater. To reduce the fuel gas consumption of more than 1 hectare of the urban to be signed, according to which
Thereby, the negative impact of and the corresponding emissions, area of Zhastar Street, followed the parties agree on landscaping
production on Atyrau’s groundwater, the Atyrau Refinery will replace by planting maintenance. Also, a land plot with an area of 1,420.9
flora, fauna and atmospheric air will technically obsolete burners at a the plant serves 224 hectares of hectares, including 860 hectares of
be minimized. number of primary oil refining units. previously planted areas. In addition, the territory of the Rotten Draw Pond
Memorandum “On performing works evaporation pond of the plant.
The Atyrau Refinery aims for In 2020, on behalf of the Ministry on landscaping Atyrau city between
continuous improvement of of Ecology, Geology and Natural
the environmental management Resources of the Republic of Expenditure on Environmental Payments in 2020
system, actively interacts on Kazakhstan (MEGNR of the Republic Expenditure category Amount, mln tenge
environmental issues with all of Kazakhstan), as part of Air emissions from flame combustion 5.0
stakeholders, annually publishes the development of a technical guide Air emissions from stationary sources (without flame combustion) 305.2
information on all environmental on BAT at the plant, a comprehensive Waste disposal 2.0
aspects, thereby constantly technological audit was carried Water contamination 41.5
reaffirming its commitment to out by the International Center for
Expenses for reducing environmental impact and environmental management 1,729.5
openness and responsibility to Green Technologies and Investment Total 2,083.2
society. Projects (ICGTIP) together with
the national and international Layout of environmental monitoring stations
experts. The audit carried out
Investments preliminary confirmed that the plant’s
technologies correspond to the best
To effectively manage environmental practices in the environmental field.
risks, the Atyrau Refinery is
constantly improving approaches The Atyrau Refinery operates an
to environmental management and environmental monitoring system
Центральный
Central server of
allocates the necessary resources based on four automatic monitoring
RISK MANAGEMENT
сервер АНПЗ
for environmental protection, in stations that monitor the content the Atyrau Refinery Химпоселок
Khimposelok
particular, environmental costs, of hydrogen sulfide, nitrogen and Мирный
Mirnyi
Перетаска
Peretaska
including payment of taxes for carbon oxides, sulfur dioxide and
regulatory emissions, costs of hydrocarbons in the atmosphere.
environmental protection measures, Also, from 2021, additional analyzers
insurance, compensation measures in have been installed that will monitor Пропарка
Proparka
the field of environmental protection. the concentration of benzene,
Филиал
Branch of RSE Трансляция
Translation onна
LED
xylol, toluene, ethylbenzenes. РГП «Казгидромет» LED экранах города
Kazhydrome screens of the city
Thanks to the use of modern Environmental monitoring reports
technologies, emissions of pollutants are transmitted hourly to the server
into the atmosphere in 2020 with of the RSE Kazhydromet, LED screens
ATTACHMENT
a limit of 20,123 tons amounted in Atyrau city and at the plant.
to 11,958 tons, discharges of
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Emissions of Pollutants 5. Implementation of measures to Energy of the RK. The project made
reduce greenhouse gas emissions it possible to significantly increase
Structure of Environmental Payments We understand the impact of our and reduce the carbon footprint. the capacity and the depth of oil
in 2020 activities on the atmosphere and 6. Carbon asset management. refining by processing fuel oil into
the environment. In this regard, 7. Continuous improvement of valuable gasoline, jet and diesel
2%
Mitigation costs on we are focused on developing emissions management activities. fuel. As part of the DORC, we also
the environment
and environmental strategies for reducing and built a catalytic cracking unit. Wet
15%
management
Air emissions from controlling
stationary sources air emissions and In 2019, the Atyrau Refinery adjusted scrubber system is used to clean
(without flaring)
exploring the possibilities of the draft standards for maximum flue gases in the catalytic cracking
Air emissions from flaring
introducing innovative technologies permissible emissions of pollutants unit, which works on the principle of
and projects. We are committed to (MPE) for 2019–2028 with a positive saturation, absorption, condensation
meeting national and international conclusion from the Department and filtration. Special devices
environmental emissions regulations. of Ecology of the Atyrau region. and sprayers are used to reduce
83% Based on the positive opinion of the content of contaminants.
In 2020, the Emissions Management the Ministry of Ecology, Geology
Mitigation costs on the environment Policy was developed at Atyrau and Natural Resources of the RK, All plant pollutant emissions are
and environmental management
Refinery LLP, the purpose of which is the Refinery obtained a permit for measurable and controllable.
Air emissions from stationary sources
(without flaring) to ensure effective management of emissions into the environment for
Air emissions from flaring emissions to minimize the impact on 2019– 2020. The essential principle Atyrau Refinery LLP emissions go
the environment. of Atyrau Refinery LLP is strict through three control stages:
observance of emission standards
Dynamics of Payments for Emissions
Emission management is based on and limits for pollutant emissions Stage 1 – State Control
400
1.18 351.68
1.4
7 “climatic” principles: specified in the permit for emissions
83% 350 1.2 1. Carrying out activities in strict into the environment. Emissions of Atyrau Refinery LLP
275.65
accordance with the legislation, are produced in a strictly defined
300
1.03 1.0
250
200
188.33 0.8 requirements and other In the course of recent years, proportion in accordance with
150
0.6 obligations of the enterprise. the Refinery has performed a the permission for emissions into
2. Compliance with established number of modernizations and the environment issued to the plant
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100 0.4
0.23
50 0.2 emission standards and limits for renovations. In 2011–2018, the plant by the Committee for Environmental
0
2018 2019 2020
0.0 pollutant emissions, quotas for implemented the Deep Oil Refining Regulation and Control of
greenhouse gas emissions. Complex (DORC) project included the Ministry of Ecology, Geology and
Dynamics of payments for emissions and for negative 3. Clear distribution of roles and in the list of investment strategic Natural Resources of the RK. Atyrau
environmental impact, mln tenge
responsibilities, increasing projects of the RK, carried out in Refinery LLP strives to minimize
Share of excess payments, % (right scale)
competence, training and accordance with the state program the environmental impact and never
awareness. of industrial and innovative reach the maximum set volumes of
4. Carrying out regular accounting, development, the Industrialization gross emissions of pollutants.
inventory and monitoring of Map for 2015–2019 and
emissions. the Strategic Plan of the Ministry of
ATTACHMENT
98 99
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ABOUT THE REFINERY

Stage 2 – In-house Monitoring fields of the left-bank part of Atyrau Greenhouse Gas Emissions The Atyrau Refinery regularly carries
for the presence of nitrogen dioxide, out activities aimed at improving
Atyrau Refinery LLP has four sulfur dioxide, hydrogen sulfide, soot Atyrau Refinery developed energy efficiency, which, in turn,
automatic air quality control stations and other pollutants. The IEC data is the Greenhouse Gas Emissions leads to greenhouse gas emissions
located in the points of the plant’s sent quarterly in the form of a report Reduction Program 2016–2020. reduction. Since the volume of
neighborhood with settlements or to the Department of Ecology of greenhouse gas emissions directly
protection zones. These automatic the Atyrau region and published at The Program ensures: depends on the volume of consumed
stations carry out 24/7 observations, the portal of the Unified Information ■ Reduction of emissions by fuel, raw materials and other
and transmit data to RSE System for Environmental Protection. introducing energy management materials, most of the measures
Kazhydromet every day. programs and systems. taken to improve energy efficiency,
In connection with bringing ■ Measures to reduce emissions at directly or indirectly, lead to
Stage 3 – Industrial Environmental the AORC and Aromatics Complex selected units. reduction in greenhouse gas
Control to the design capacity, the specific emissions.
emissions of sulfur oxide and
As part of the IEC, atmosphere nitrogen at the enterprise increased, Dynamics of Greenhouse Gas Emissions
air is monitored at the industrial as can be seen from the data below. Indicator 2018 2019 2020 (Forecast)
site of the plant, at the borders of At the same time, the plant complies
Gross direct emissions of greenhouse gases, thous. tons of
1,205.851 1,655.069 1,777.798
the plant’s sanitary protection zone, with the standards of maximum CO2-eq., including:
at the landfill of solid industrial permissible emissions, established in carbon dioxide (СО2), thous. tons 1,194.223 1,640.138 1,760.425
waste of the plant, in the evaporation the environmental permit. methane (СН4), thous. tons 10.907 14.095 16.478
nitrogen oxide (N2О), thous. tons 0.721 0.836 0.895
Dynamics of Pollutant Emissions, thous. tons
Pollutant 2018 2019 2020 Climate Change
Sulfur oxides SOx 0.5 0.5 0.6 The oil refining industry is an
Nitrogen oxides NOx 3.8 3.8 4.8 Atyrau Refinery is an industrial important link in the unified fuel and
enterprise, the main function of energy complex of the country, which
which is the processing of oil into determines the efficiency of the use
gasoline, aviation kerosene, fuel of petroleum raw materials.
RISK MANAGEMENT
Specific pollutants Emissions into the Specific greenhouse gases Emissions into oil, diesel fuel, petroleum coke and
atmosphere, tons/1000 tons of refined oil the atmosphere, thous. tons/thous. tons of petrochemical feedstock. Oil is Oil refineries are the largest
refined oil refined at processing units: primary consumers of fuel and energy
1.9 0.23
oil refining (AD – atmospheric resources, including boiler and
2018 2018 distillation, AVD – atmospheric- furnace fuel, heat and electricity.
2019
1.9
2019
0.31 vacuum distillation), catalytic The efficiency and rationality of their
2.4 0.35
reforming, catalytic cracking, use in oil refining processes are
2020 2020
(Forecast)
hydrotreating, isoselectoforming, largely determined by the operation
0.0 0.5 1.0 1.5 2.0 2.5 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 dewaxing, bitumen production, etc. of the plant’s technological
The main equipment of the units are: equipment. Maintaining the proper
tube furnaces, rectification columns, and efficient operation of plant
ATTACHMENT
heat exchangers. equipment, work to ensure safety
100 101
ANNUAL REPORT 2020
ABOUT THE REFINERY

and trouble-free operation is an 4. We will not allow exceeding equipment and installations of is issued in the prescribed manner a
important element of the Company’s the standards of wastewater the plant, the surface water is taken permit for water use, as well as tax
work to reduce the impact on climate disposal. from the river Ural. In accordance payments are made for the use of
change. 5. We strive to improve the quality of with the water legislation of the water resources.
wastewater treatment in units and the Republic of Kazakhstan, the plant
wastewater treatment facilitates
Water Resources Management for maximum possible reuse and Total Amount of Withdrawn Water by Sources, thous. m3
reduction of discharge volumes. Indicator 2018 2019 2020
Atyrau Refinery is aware of the value 6. We strive to use closed water Water withdrawn volumes (surface water) 7,190.78 7,105.4 6,867.7
of water for human life and health, circulation systems for water Municipal and other water supply systems (purchase of drinking
160.48 145.55 129.909
for society and our production supply. water from PSE Atyrau Oblysy Su Arnasy)
activities, and strives for the rational 7. We strive to reduce the intake of
use of water resources. fresh water as much as possible
through the introduction of water Waste Management ■ recycling, disposal or
In 2019, the Company developed circulation and water-saving neutralization of waste using
the Regulation on Water Resources technologies. The Company has developed “Waste the best available technologies.
Management. 8. We strive not to use potable Management for Consumption
quality water for production Production for 2019–2028” program. The Company’s goal is to gradually
Basic principles for water resources purposes. The program regulates the activities reduce the volume and (or)
management for Atyrau Refinery: 9. We strive for one hundred percent for planning, implementation, the level of hazardous properties of
1. We are aware of the highest value metering of water intake and monitoring and analysis of accumulated and generated waste,
of water for human life and health, wastewater disposal. measures for the management of as well as waste in the process
for society and our production 10. We are conducting enhanced production and consumption waste. of circulation. The tasks are set
activities, and we unconditionally control to prevent leaks and The program is aimed at improving to achieve this goal by the most
accept the importance of a discharges of treated wastewater the efficiency of procedures for effective and economically sound
careful and rational attitude to for the rational use of water assessing changes in the volume methods, with forecasting achievable
the country’s water resources. resources. and composition of waste in order volumes (stages) of work within
2. We strive not only to comply with to develop an operational policy for the planning period.
RISK MANAGEMENT
requirements of the legislation of The total amount of taken water minimizing waste using economic
the Republic of Kazakhstan, but in 2020 was 6.9 mln m3. The main or other mechanisms to make The tasks are aimed at reducing
also to comply with international source is surface water. The total positive changes in the patterns of the volume of generated and
standards and best practices, discharge of water last year production and consumption by: accumulated waste, taking into
as well as to take into account amounted to 4.6 mln m3. Discharge ■ improvement of production account:
the views of all stakeholders in is carried out only into evaporation processes, including through low- ■ introduction at the enterprise
the region. ponds (accumulators), on filtration waste technologies introduction; of the world’s best available
3. We will not allow exceeding fields. ■ reuse of waste or their transfer technologies for waste recycling
the norms of water consumption to individuals and legal entities and treatment;
from the Ural river. For the production needs of the plant interested in their use;
in order to cool the technological
ATTACHMENT
102 103
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Total Volume of Waste Generation, tons
■ minimization of the volume of
waste disposed of to landfills; Indicator 2018 2019 2020
■ reclamation of waste disposal Waste generation volume, including: 15,045.06 32,937.080 54,753.1
sites, minimization of biological sludge 69.3 80.5 91.7
Water intake volumes, thous. m3 the negative impact of landfills on oil slime 605.9 19,819.443 35,131.338
the environment. solid domestic waste 1,673.66 1,055.5325 1,256.59
lime sludge 1,564.0 2438 3,013.850
7,190.78 7,105.4
Atyrau Refinery has its own landfill construction garbage 6,070.48 6,760 7,665.84
6,867.7 for burial of solid industrial waste spent catalysts 80 2,685.767 6,722.00
(biological sludge, activated carbon, other waste 4,981.72 97.84 871.8
destroyed ceramic balls) located to
the east of Atyrau city at a distance Waste Management Methods, tons
of 1.9 km. The landfill is located 7.9 Indicator Hazardous waste generated
2018 2019 2020 km north-east of the plant’s territory. Formed during the reporting year 54,753.105
Reused at the enterprise 1,638
During operation of the oil refinery, Redesigned at the enterprise’s unit 2,2819.998
the resulting industrial wastes of Placed and buried at the waste disposal facilities of the enterprise 92.70
Wastewater discharges, thous. m3 III and IV hazard class – biological Transferred to specialized contracting organizations 52,122.865
sludge, activated carbon, ceramic Located at the enterprise at the end of 2020 -
4,551.69
balls – are taken to its own landfill,
the rest of resulting waste is
3,966.07 removed by specialized companies
3,780.95 under a contract.
In 2020, recycling, removal and

waste processing was carried out by
2018 2019 2020 BSG LLP, Abadan Group LLP, Atyrau
Vital Global Mote LLP, Enertek LLP,
RISK MANAGEMENT
Eco-Technics LLP, Spetsavtobaza LLP.
Specific Water Consumption for The increase in the volume of
the Plant’s Own Needs, industrial waste in 2020 is due to
m3/1000 tons of refined oil the work for cleaning the tanks of
1,368
sewage treatment plants, in which oil
1,365
sludge has been accumulated over
the past few years. In connection
with the work for the reconstruction
of the wastewater treatment plant,
1,319
the plant is carrying out the work
ATTACHMENT
on its dismantling and cleaning
the territory (the Tazalyq Project),
2018 2019 2020
which also affected the volume of
removed and disposed of waste.
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Environmental Impact Assessment On 5 November, 2020, we held requirements, including production ■ radiation safety on the territory
public hearings in the form of open monitoring, accounting, reporting, of the industrial site, the SPZ,
In accordance with requirements meetings on the “Reconstruction of documenting the results, as well in the area of the evaporation
of the environmental legislation the channel of normatively treated as measures to eliminate identified field of the left-bank part of
of the Republic of Kazakhstan, at wastewater and reclamation of inconsistencies in the field of Atyrau, the industrial waste
the planning stage of each project, evaporation fields of Atyrau Oil environmental protection. disposal site and in the utility
we perform environmental impact Refinery LLP” project. and administrative premises of
assessment (EIA) to determine Industrial environmental monitoring the plant;
the environmental and other of the enterprise’s economic ■ production control of physical
consequences of options, managerial Industrial Environmental Monitoring activities is carried out on the basis factors (noise and vibration) at
and economic decisions taken, of the Industrial Environmental the border of the plant’s SPZ.
and develop recommendations for The Atyrau Refinery performs Control Program (IEC), as well as
improving the environment. industrial environmental control – schedules for analytical control of Industrial environmental monitoring
this is a system of measures carried atmosphere air and waste water. is carried out in accordance with
Furthermore, at the design stage out by natural resource user to the industrial environmental
of each project, we hold public monitor the state of the environment The IEC program covers the following program on a quarterly basis, then
hearings with the participation and its changes under the influence types of monitoring: a report is drawn up in accordance
of stakeholders’ representatives: of economic and other activities, ■ state of atmosphere air at with the environmental legislation
administrative, state and regulatory verification of the implementation the industrial site, the sanitary of the Republic of Kazakhstan
bodies, research organizations, public of plans and measures for protection zone (SPZ), the plant’s and submitted to the Department
associations, local residents and protection and improvement of landfill for solid industrial waste, of Ecology in the Atyrau region,
the media. We provide access to all the environment, reproduction and the evaporation field of the left- the report is also entered into
stakeholders to draft EIA, receive and rational use of natural resources, bank part of Atyrau; the Unified Information System
register notes and suggestions. compliance with legislation on ■ condition of industrial emissions of Environmental Protection of
environmental protection, standards from chimneys of technological the Ministry of Ecology, Geology and
for its quality and environmental furnaces and boilers of the plant; Natural Resources of the Republic of
■ quality of the waste water Kazakhstan.
discharged from the plant;
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Public hearings ■ condition of underground water According to the results of 2020,
from the observation wells of during the monitoring, excess of
the plant located at the industrial maximum permissible concentrations
site, the landfill of the plant’s solid was not recorded.
industrial waste, the flare unit,
the evaporation field, the loading
rack for light oil products;
■ condition of soil and vegetation at
the industrial site, the evaporation
field of the left-bank part of Atyrau,
the landfill of solid industrial
ATTACHMENT
waste of the plant;
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Shumilov Sergei
Energy Efficiency amounted to about 40,698 trf, or
Chief Energy Efficiency Specialist
974.4 million tenge. In terms of
As part of the Energy Efficiency natural fuel, this made it possible to
Program for 2016–2020, we are save about 25,436 tons of natural “Atyrau Refinery pays great attention to efficient use of
planning to carry out 20 activities gas and reduce emissions of harmful fuel and energy resources – this is an important factor
aimed at reducing the consumption substances into the atmosphere: of the plant’s impact on the environment, both in terms
of fuel and energy resources (FER). ■ Н S – 0.129 tons;
2
of the level of resource consumption and in terms of
The expected decrease in FER ■ СО – 298.1 tons; emissions of pollutants. It is also a factor of operational
amounted to 8.78 %. ■ NO – 59.1 tons;
2
efficiency that influences economic performance.
■ NO – 9.6 tons;
Based on the results of the work, ■ Total – 366.89 tons. The plant, particularly, is implementing a program to
15 program activities were carried reduce burns and losses for 2019–2025. The program
out over five years, which made Some of the activities were initiated by the plant’s specialists provides for repair and
it possible to save from 2016 not carried out for objective restoration activities, capital projects and modernization.
to 2020, about 15 % of fuel and reasons, related primarily to In 2020, we carried out commissioning tests in the plant’s
energy resources (FER), with an the risks affecting the safety of furnaces. As a result of only organizational measures, due
increasing effect, of the total energy the technological processes and to the control of the oxygen content in the furnaces, we
consumption of the base year, which financial costs. managed to save 10 thousand tons of fuel per year, or
0.2 % from oil refining.
Energy Capacity Indicator Dynamics
Indicator 2018 2019 2020 General structure of the fuel and energy resources
consumed by the plant: 70 % is accounted for by fuel,
Total consumption of fuel and energy resources, trf 1,006,610.6 1,182,404.6 1,290,670.6 20 % by heating energy, and 10 % by electricity. Therefore,
Oil refining volume, thous. tons 5,267.734 5 388.2 5 016.3 reduction of fuel consumption, which is mainly used in
Energy Capacity of oil refining, trf/1000 tons of oil fire heating furnaces, is the key element in ensuring
191.1 219.4 257.3
refined oil energy efficiency.
Energy consumption We are going to introduce an energy efficiency program
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Energy consumption, physical units Energy consumption, tons of reference fuel (trf)
for 2021–2025 in the new year. In particular, already this
Energy type
Measurement
Unit year we are planning to prepare a feasibility study for
2018 2019 2020 2018 2019 2020 the technology of a rigid tar supply scheme. By reducing
Natural gas thous. cubic m 147,699.4 172,323.1 157,874.7 169,854.31 198,171.57 181,555.91 the need for heating tar, we are aiming to save about 8
Heat energy Gcal 1,177,593 1,044,863 1,049,175 168,395.799 149,415.41 150,032.03 thousand tons of fuel. But this is just one project of an
Electricity MWh 722,983.5 781,842.9 787,722.7 88,926.9705 96,166.677 96,889.892 extensive program of activities for the next five-year
Boiler and
t 19,049 29,579 27,574.38 24,954.19 38,748.49 36,122.438
term. Energy efficiency issues will remain to be the focus
furnace fuels
of the Refinery’s management”.
Gas fuel t 346,549,.8 437,439.03 516,293.97 554,479.32 699,902.45 826,070.35
Total 1,006,610.59 1,182,404.6 1,290,670.6
ATTACHMENT
108 109
Corporate
Governance
112 Management structure

112 General Meeting of Participants
113 Supervisory Board
116 Composition of the Supervisory Board of Atyrau
Refinery LLP
122 Activities of the Supervisory Board
124 Board
126 Composition of the Board
132 Remuneration to members of the Board
132 Compliance control
135 Corporate ethics
136 Corporate Principles
138 Internal Audit
MOTOR GASOLINE PRODUCTION IN
1,053,978
2020
SAFETY
QUALITY
tons
STABILITY
ANNUAL REPORT 2020
ABOUT THE REFINERY

MANAGEMENT STRUCTURE SUPERVISORY BOARD
Supreme Body – General The Supervisory Board of Atyrau Key competencies of the SB of Atyrau
Meeting of Participants Refinery LLP organizes its activities Refinery:
in accordance with the legislation ■ approval of the Business Plan,
of the Republic of Kazakhstan, Annual Budget, adjustments
Supervisory Body – Supervisory Board the Charter, internal documents of and monitoring of their
the Company and other documents implementation;
approved by the General Meeting of ■ preliminary approval of the annual
Founders. financial statements;
Collegial Executive Body –
■ approval of the total number of
Board
The objectives of the SB are to employees of the Atyrau Refinery;
control activities of the executive ■ approval of the general risk
body of the Atyrau Refinery, ensure appetite of the Atyrau Refinery;
the realization of interests and ■ approval of motivational key
protection the rights of participants. performance indicators for
members of the Board of Atyrau
GENERAL MEETING OF Key functions of the SB of Atyrau

Refinery:
Refinery and their target values;
■ determination of the size of official
■ determination of the priority salaries and wage conditions,
PARTICIPANTS development directions
of the Atyrau Refinery and
bonuses, payment of awards
and social support of the Atyrau
establishment of the main Refinery’s executive officers;
Over the reporting year 2020, the General Meeting of Participants of Atyrau guidelines for activity of the Atyrau ■ conclusion of transactions,
Refinery LLP considered 8 issues at 6 meetings: Refinery in the long run; the value of which is 25 percent
RISK MANAGEMENT
on changing the composition of the Board (on early termination and election of members of the ■ settlement of corporate conflicts; or more of the total value of
1
Board) ■ other functions stipulated by the Atyrau Refinery’s assets;
on approval of certain internal rules 2 the Charter and documents ■ increase in financial liabilities
on approval of financial statements and the distribution of net income of Atyrau Refinery LLP
1 approved by the GMP of Atyrau of the Atyrau Refinery (loans,
for 2019
Refinery. financial assistance, guarantees)
on alienation of stakes in the authorized capital of other legal entities 1
by an amount of more than KZT
on approval of transactions for the amount over KZT 8,000,000,000 3
The SB’s competence is determined 500,000,000 (five hundred million).
by the legislation of the RK and
the Charter of Atyrau Refinery.
The Supervisory Board is not entitled
to make decisions that contradict
ATTACHMENT
the decisions of the GMP.
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Responsibility of Members of ■ SB members can be jointly and
the Supervisory Board: severally held liable to third
■ The Supervisory Board is parties subsidiary with Atyrau
responsible to the GMP of Atyrau Refinery for losses incurred by
Refinery. these persons as a result of
■ SB members are responsible insolvency (bankruptcy) of Atyrau
for losses caused by actions Refinery caused by improper
(inaction) as a result of improper control over the activities of
implementation by the SB of the executive body of the Atyrau
control over the activities of Refinery.
the executive body of Atyrau
Refinery, in the manner prescribed Payment of remuneration to
by the legislation of the Republic the SB members (representatives
of Kazakhstan. of KazMunayGas NC JSC) is not
■ SB members may be held liable provided.
at the request of the GMP, while
they are jointly and severally The General Meeting of Participants
responsible for losses caused of Atyrau Refinery LLP determine
by their joint implementation election and early termination
of improper control over of powers of the Chairman and
the activities of the executive body members of the Supervisory Board,
of Atyrau Refinery. the number of members, the term of
office of the Supervisory Board.
RISK MANAGEMENT
ATTACHMENT
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ANNUAL REPORT 2020
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COMPOSITION OF
THE SUPERVISORY BOARD
OF ATYRAU REFINERY LLP
In 2002, was appointed as Since January 2018 – Executive Vice
the Deputy Director of the Oil, Gas President for Oil Transportation,
and Petrochemistry Department, Refining and Marketing of
then – Deputy Director of KazMunayGas NC JSC.
Tiyessov Daniyar the Petrochemistry Development
Department of KazMunayGas NC Since February 2019 – Deputy
Chairman of the Supervisory Board of Atyrau CJSC. Chairman of the Managing Board
Refinery LLP for Oil Refining and Marketing of
Deputy Chairman of the Managing Board for Oil From 2003 to 2006 he worked as KazMunayGas NC JSC.
Refining and Marketing of KazMunayGas NC JSC the head of the capital construction
department, the general director From July 2020 – Deputy Chairman
of the Directorate of the enterprise of the Board in Oil Refining
under construction, the financial and Petroleum Chemistry of
director of the Directorate of “KazMunaiGas” JSC.
Date of birth: 6 December, 1970 Work experience: the enterprise under construction
Atyrau Refinery LLP. Awards: Awarded with the medal
Education: in 2002 graduated from Began his labor activity in 1994 as “Qurmet”, medals “20 years of
the Atyrau Institute of Oil and Gas a manager of the Manas SE, then In 2006, he was appointed as Deputy the Constitution of the Republic
with a degree in Technological worked as a manager in Bata LLP and General Director for Production of of Kazakhstan” and “25 years of
Engineer. In 1991 graduated from as an executive director in Abyz LLP. KazMunayGas Trading House JSC. Independence of the Republic
the East Kazakhstan State University of Kazakhstan”, the Certificate
with the qualification “Lawyer”. Since 1999 – assistant to the First From 2009 to 2013 – Deputy of Merit and the Certificate of
RISK MANAGEMENT
Vice President, Secretary of the Board Chairman of the Managing Board Honor of KazMunayGas NC JSC;
of Directors of Atyrau Refinery OJSC. for Refining and Petrochemicals, a diploma of the Chairman of
In the same year, starts working Managing Director for Oil the Board of JSC NWF Samruk-
at Kazakhoil NOC CJSC as Chief Refining and Marketing, Advisor at Kazyna “For demonstrated
Manager, Deputy General Manager of KazMunayGas NC JSC. leadership in promoting the goals of
the Group for Project Management transformation” and a jubilee medal
for Reconstruction of OJSC Atyrau In 2013, he became Deputy for the 20th anniversary of the civil
Refinery, Head of the Control Sector Chairman of the Managing Board protection service of the Emergency
for current activities, chief specialist for Oil Refining and Marketing of Situations Committee of the Ministry
of the sector corporate governance KazMunayGas NC JSC – General of Internal Affairs of the Republic of
and monitoring of the current Director of JSC KazMunayGas – Kazakhstan, Awarded with medal of
ATTACHMENT
activities of the project management Refining and Marketing. the Ministry of Energy of RoK “For
department of Atyrau Refinery. contribution to the development of
Since August 2016 – Senior Vice oil and gas industry”.
President of KazMunayGas NC JSC.
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Melnik Viktoriya
Member of the Supervisory Board of Atyrau
Refinery LLP
Chief specialist of the Operations Management
Sector of the Oil Refining and Petrochemistry
Department of KazMunayGas NC JSC
Date of birth: 27 July, 1985 Work experience: From 2014 to 2016 – General From August 2017 to July 2020 –
Manager, Head of the Financial Head of the Operations Management
Education: in 2008 graduated from Began her career in 2005 as an Analysis and Business Planning Division of the Oil Refining
the F.M. Dostoevsky Omsk State economist of the 2nd category Service of KazMunayGas-Aero LLP, Department of KazMunayGas NC JSC.
University with a degree in Finance of the planning and economic engaged in the sale of aviation fuel,
and Credit, Exchange Business with department of KSP Steel fueling of aircrafts. Since July 2020 – Chief Specialist of
the qualification “Economist”. Manufacturing Company LLP. the Operations Management Sector
In 2015–2016, worked as Deputy of the Department of Oil Refining
In 2010–2011, worked at RT Refinery Director of the Department for and Petrochemistry of KazMunayGas
Company LLP, which was engaged in Investment Planning and Tariff NC JSC.
the sale of oil and oil products, as a Regulation of JSC KazMunayGas
manager of the economic analysis Refining and Marketing. Awards: awarded with Certificates
and budgeting service. of Honor and medals of Pavlodar
In 2016–2017 – Chief Manager Oil Chemistry Refinery LLP, CASPI
RISK MANAGEMENT
In 2012–2014 – Deputy Director of of the Oil Refining Department BITUM JV LLP, KazMunayGas
the Department of Economic Analysis of KazMunayGas NC JSC, Deputy NC JSC – Processing and Marketing,
and Business Planning at Eurasia Director of the Department KazMunayGas NC JSC.
Munai Impex LLP, a subsidiary for Project Management of
of JSC KazMunayGas Refining and Modernization of KazMunayGas
Marketing. NC JSC Refinery.
ATTACHMENT
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Dandybayeva Zhanara
Member of the Supervisory Board
of Atyrau Refinery LLP
Chief Specialist of the Debt Attraction Sector of
the Corporate Finance Department
of KazMunayGas NC JSC
Date of birth: 20 May, 1978 Work experience: From 2011 to 2013, she worked From December 2017 to July 2020,
as a category 1 manager of the oil she has been working as Deputy
Education: In 1999 graduated Began her career in 1999 as a refining and petrochemistry Director of the Corporate Finance
from the Faculty of Economics specialist in the field of research department, a category 1 manager Department of KazMunayGas NC JSC.
of the Kostanay Agricultural of geophysical services of and an expert in the oil refining
Institute, qualification “Economist- the marketing department of JSC and petrochemical development Since July 2020 – Chief Specialist
financier”. In 2002 she graduated Kazakhstankaspiyshelf. department of KazMunayGas NC JSC. of the Debt Attraction Sector of
from the International Academy the Corporate Finance Department of
of Business in Almaty, receiving From 2000 to 2002 she worked in From 2013 to 2016, she worked KazMunayGas NC JSC.
an academic degree of Master of the service company GIS-Center LLP at JSC KazMunayGas – Refining and
Science in the specialty “Economics as a project manager. Marketing as Deputy Director of Awards: awarded with Certificates
and Management in the Social the Corporate Finance Department. of Honor and medals KazMunayGas
Sphere and Industries”. From 2002 to 2011, she worked at Trading House JSC, Atyrau
KazMunayGas Trading House JSC In 2016–2017, she held the positions Refinery LLP, KazMunayGas-RM JSC,
RISK MANAGEMENT
in the following positions: Chief of the chief manager of the refinery KazMunayGas NC JSC.
Manager of the Development modernization management
Department, Department of Oil department, the head of the treasury
Products Sales and Retail Network and corporate finance department of
Development, Department of the economy and finance department
Corporate Development and of the TPM Division of KazMunayGas
Investment Management, Chief NC JSC.
Manager and Deputy Director
of the Corporate Development
Department and Financing.
ATTACHMENT
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ACTIVITIES OF ■ approval of actual values and final performance of
corporate KPIs and executive officers of Atyrau Refinery,
THE SUPERVISORY BOARD maps of motivational key performance indicators of
executives of Atyrau Refinery for 2019
■ approval of corporate KPIs of Atyrau Refinery, a map of
motivational KPIs of the General Director (Chairman of
the Board) of Atyrau Refinery for 2020, as well as maps
In 2020, the Supervisory Board held 11 meetings: considered 24 issues, of motivational key performance indicators of members
22 of which were considered at in-person meetings. Issues of of the Board of Atyrau Refinery and their target values
assessing for 2020
the EO and SBS ■ determination of the size and payment of remuneration
Issues considered by the Supervisory Board in 2020 effectiveness to the General Director (Chairman of the Board) and
members of the Board of Atyrau Refinery following
■ approval of the total number of employees of the Atyrau the results of work in 2019
Refinery ■ approval of assessment of the fulfillment of the goals of
HR issues ■ early termination of powers, appointment of a new the secretary of the Supervisory Board of Atyrau Refinery
secretary of the Supervisory Board of Atyrau Refinery and the payment of bonuses based on the results of
from 09.10.20 the 1st-3rd quarters of 2020
■ preliminary approval of the annual financial statements ■ approval of the goal setting of the secretary of
of the Atyrau Refinery for 2019 the Supervisory Board of Atyrau Refinery for 2020
■ approval of the adjusted Business Plan of Atyrau ■ approval of the Rules for training and advanced training
Refinery for 2020–2024, including the budget for 2020, of employees of the Atyrau Refinery
Financial issues taking into account cost optimization and changes in ■ approval of the Program of social support for
macroeconomic indicators the Atyrau Refinery personnel to be laid off as part of
■ approval of the Business Plan of the Atyrau Refinery the implementation of the Headcount Optimization
for 2021–2025, approval of the budget of the Atyrau Approval
Project
Refinery for 2021 of internal
approval of the Rules for formation and organization of
RISK MANAGEMENT
■
documents
■ preliminary approval of the issue “On alienation by work with the talent pool of the Atyrau Refinery
Atyrau Refinery of 50 % of the share in the authorized ■ approval of the Rules of competitive selection for
capital of Liquefied Petroleum Gas Tank Farm LLP” the occupation of vacant positions/blue-collar jobs of
■ coordination of the conclusion of Agreements of the Atyrau Refinery
Strategic issues
the Atyrau Refinery on cooperation in the production ■ approval of the Tax Accounting Policy of Atyrau Refinery
and supply of liquefied petroleum gas, production of ■ approval of the Work Plan of the Supervisory Board of
components for pure high-octane gasoline and purified Atyrau Refinery for 2020
propylene ■ consideration of the Report on the activities of
Issues related
to the SB
the Supervisory Board of the Atyrau Refinery for 2019
■ review of implementation of decisions taken at
ATTACHMENT
activities
the meetings of the Supervisory Board of the Atyrau
Refinery in 2019, and assessment of the results of their
implementation
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ABOUT THE REFINERY

BOARD
TOTAL IN 2020
The Board of Atyrau Refinery LLP Refinery without the consent The Board makes decisions:
is a collegial executive body that of the GMP, aimed at obtaining ■ on the conclusion of Atyrau HELD CONSIDERED
23 160
manages its current activities, property benefits from it (including Refinery LLP transactions, with
implements decisions of the General agreements of donation, loan, the exception of transactions
Meeting of Participants and gratuitous use, purchase and sale, referred by legislation and/or Meetings issues
the Supervisory Board of Atyrau etc.). Receiving remuneration from the Charter of the Partnership to
Refinery LLP. In its activities, both Atyrau Refinery LLP and third the competence of other bodies of
the Board is guided by the norms parties for transactions concluded by the Partnership;
of legislation of the Republic of Atyrau Refinery LLP and third parties, ■ makes decisions on increasing the Accounting Policy and Tax
Kazakhstan, the Charter, internal to act on behalf of or in the interests the financial liabilities of Atyrau Accounting Policy of Atyrau
documents of the Atyrau Refinery LLP. of third parties in their relations with Refinery LLP (loans, credits, Refinery LLP, promptly notifying
Atyrau Refinery LLP. financial assistance, guarantees) by the Supervisory Board of the status
The chairman and members of an amount ranging from 1 to 10 of key risks of the Partnership;
the Board are obliged to ensure The competence of the Board percent of its equity capital; ■ prepares for consideration
the integrity of the accounting and includes all issues of ensuring ■ approves the annual financial by the GMP and SB of Atyrau
financial reporting systems, including the activities of Atyrau Refinery LLP, statements; Refinery LLP documents on issues,
the conduct of an independent audit, which are not related to ■ coordinates and directs the work the adoption of decisions on
taking the necessary measures to the competence of other bodies of branches and representative which is within their competence,
prevent damage. The chairman and of the Partnership, determined by offices of the Partnership; acting in the interests of Atyrau
members of the Board of the Atyrau legislation, the Charter or rules ■ ensures the development Refinery LLP reasonably and in
Refinery are prohibited from entering and other documents adopted by and submission for approval good faith.
into transactions with the Atyrau the General Meeting. of the Supervisory Board of
RISK MANAGEMENT
ATTACHMENT
125
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COMPOSITION OF THE BOARD He is the author of a number
of articles and publications on
of the Chairman of the Senate of
the Parliament of the Republic of
the organization and functioning of Kazakhstan, the Certificate of Honor
commercial settlement at enterprises of the Federation of Labor Unions,
in a market economy. medals: KAZENERGY, “Kazakhstan
Respublikasynyn Tauelsizdigine 20
Sh.A. Danbay conducts a great Zhyl”, “Kazakhstan Respublikasynyn
public work: he is the president of Tauelsizdigine 25 Zhyl”, “For merits
the Boxing Federation of the Atyrau in the patriotic education of youth”,
region NGO, was the president “Kaiyrymdylygy ushin SAUAP”, in
of the Boxing Federation of honor of the 75th anniversary of
the Pavlodar region NGO, a member the Pavlodar region, in honor of
Danbay Shukhrat of the Bureau of the Political Council the 35th anniversary of the plant,
General Director of the Pavlodar regional branch in honor of the 45th anniversary of
(Chairman of the Board) of the Nur Otan party, a deputy of KazGiproNefteTrans Engineering
Pavlodar regional Maslikhat of V, VI Company LLP (KGNT), “For loyalty
convocations. to the cause”; badges “For the merit
to the region” and “Kazakstan
Shukhrat Danbay was born in Over the years, he headed large Awarded with the Medals “Qurmet” politsiyasyna 25 zhyl”, Honorary
1963 in Kentau city of South commercial structures for the supply and “Parasat”, the Certificate of Honor resident of Pavlodar city.
Kazakhstan region. Graduated from and refining of oil: (general director
Kainar University with a degree in of Gelios LLP, general director of Fuel
International Economic Relations, Energy Complex of Kazakhstan LLP),
the Russian Academy of National he held the positions of Deputy
Economy and Public Administration General Director of Pavlodar
under the President of the Russian Petrochemical Plant LLP for
Federation (Moscow) with a degree Economics and Finance, Executive
in Business Administration. From Director of the Oil Refining and
RISK MANAGEMENT
February 26, 2018 to October 26, Petrochemicals Unit of KazMunayGas
2019, he underwent professional NC JSC, from September 2009 to
retraining at the I.M. Gubkin Russian November 2017 – General Director of
State University of Oil and Gas and Pavlodar Oil Chemistry Refinery LLP,
received an Executive Master of since June 2018 from February 15,
Business Administration degree in 2019, he was Managing Director for
the Energy Leadership program. Oil Refining at KazMunayGas NC JSC.
ATTACHMENT
126 127
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ABOUT THE REFINERY

Suleimenov Erkin
First Deputy General Director for Production – Akanova Luiza
Chief Engineer, Deputy General Director for Corporate Functions,
Member of the Board of Atyrau Refinery LLP Member of the Board
Was born on 18 April, 1972 in Professional activities: Was born on 25 February, 1976 Organizations as a Chief Specialist
the Mangystau region. of the Department for Supervision
He began his career as an operator Education: of Securities Market Entities and
Education: of a technological unit at Atyrau Accumulative Pension Funds.
Refinery LLP, over the years he Kazakh State Academy of
In 1994 he graduated from held the positions of Head of plant Management, faculty: Accounting and In November 2004, she was hired
the Atyrau Institute of Oil and Gas units, Deputy Head of a workshop, Auditing, major: Economics. as the Chief Manager of the Asset
with a degree in Engineer-Chemist- Head of a technical department, Management Department of
Technologist, in 2001 – with a degree Chief Technologist-Head of a Professional activities: KazMunayGas NC JSC and then held
in Engineer-Economist. In 2016 technical department, Director of the positions of Deputy Director and
he received a master’s degree oil refining department, Deputy Luiza began her career in Director of the Asset Management
in business administration from Chief Engineer for technology August 1997 at the National Department.
the Almaty Management University and production, Deputy Chief Securities Commission of the RK
non-governmental educational Engineer for Technology, Director of from the position of a leading In October 2013, she was invited
RISK MANAGEMENT
institution. the Department for Reliability and specialist, then she was transferred to the position of Director of
Mechanical Integrity of Production to the position of chief specialist and the Asset Management Department
Assets, Managing Director for head of the sector of the Securities of KazMunayGas – Refining and
Technology, First Deputy General Market Regulation Department. Marketing JSC.
Director for Production.
In 2001–2004, she worked at Since September 2016, she
In August 2019, he was appointed the National Bank of the RK held the position of Director of
First Deputy General Director for and the Agency of the RK for the Refining and Marketing Business
Production – Chief Engineer of Atyrau Regulation and Supervision of Directorate at KazMunayGas NC JSC.
Refinery LLP. the Financial Market and Financial
ATTACHMENT
In 2021 he was elected as a Deputy
of the Atyrau city Maslikhat.
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ABOUT THE REFINERY

Dzhumagaliyev Berik
Sadvokassova Ardak
Director of the Legal Support Department,
Chief Accountant,
Member of the Board
Member of the Board
Date of birth: 3 June, 1961. NGSK JSC (2003–2006); Chief Date of birth: 11 September, 1963. Kazakhstan (1993-1994); Deputy
Accountant of Intergas Central Head of the Contractual and Legal
Education: Asia CJSC (2006–2012); Chief Education: Department, Head of the Contractual
Accountant, Advisor to the General and Legal Department, Deputy Head
Karaganda State University (1983). Director of Petroleum Operating LLP Karaganda State University (Law of the Department for Work with
(2012–2016), Inspector for Faculty). Major: Law Science. Branches of Kazkommertsbank OJSC
Professional activities: Social Facilities of Kipros LLP (1994–1997); Director of the Legal
(June 2016 – October 2016); Professional activities: Department of BankTuranAlem CJSC
Chief Tax Inspector of the VAT Head of the IFRS reporting (1997–1998); Deputy Director of
Department, Head of taxation sector department of the Accounting Inspector for the work of Kazakhstan Legal Croup LLP (1998–
of non-state enterprises of the Tax Department of the Commercial administrative bodies of 1999); Senior Specialist of the 6th
Committee of the Soviet district of Bank Moskommertsbank JSC (2016– the Karaganda Executive Committee Division, Head of the Department
Karaganda city (1984–1998); Leading 2018); Head of the accounting (1987–1988); Legal Adviser to of the Committee for State Material
RISK MANAGEMENT
Tax Specialist, Intergas Central Asia department of the “Transformation the Michurinsk Agro-Industrial Reserves of the MEIT RK (1999);
CJSC (1998–2000); Leading Tax of Key Business Functions Firm – Technical School (1988– Deputy Director of Kazakhstan Legal
Specialist, Kar-Tel LLP (2000–2001); and ERP implementation” 1990); Legal Adviser, Chief Engineer, Croup LLP (1999–2000); Director of
Deputy Chief Accountant of Intergas project of KazMunayGas NC JSC Deputy Director of the Fruit and the Legal Department, Vice President
Central Asia CJSC (2001–2003); (2018 – July 2018). Vegetable Base (1990–1993); of Astana Holding Corporation
Chief Accountant of Kazstroyservice Financial Director, Marketing (2000–2003); Vice President of
of New Technologies Company, Subsidiary Caspi Neft JSC (2003–
Moscow (1993); Senior Economist 2005); Partner of DSM Management
of the Foreign Exchange Operations Company LLP (2006–2009); Deputy
Department of the Russian Coal Head of the Representative Office of
and Raw Materials Joint Bank Baltikums Bank AS (Latvia) (2011–
ATTACHMENT
(Russobank), Moscow (1993); 2012); Director for Legal Affairs of
Deputy Head of the Karaganda Tranco JSC (2017–2018).
Department of Alem Bank
130 131
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REMUNERATION FOR The Atyrau Refinery has approved
such documents as the Anti-
Atyrau Refinery LLP takes preventive
measures in advance to prevent
MEMBERS OF THE BOARD Corruption Policy, the Policy for
the Settlement of Conflicts of
corruption, i.e., introducing
elements of the corporate culture,
Interest Among Employees and organizational structure, rules
Officials, and the Confidential and procedures aimed primarily
The total amount of remuneration to to members of the Board during Information Policy. These documents at identifying corruption risks and
the members of the Board at the end their term on the Board in 2020 set out the key principles of minimizing them.
of 2020 amounted to 125,098,803 in accordance with the Rules for the Atyrau Refinery’s Compliance
tenge, which includes the amount of remuneration of executive officers Policy, in particular, the principles The Company sets the task to form a
salaries and all types of incentives and the secretary of the Supervisory of business ethics, the settlement of personal position of non-acceptance
in cash paid by Atyrau Refinery LLP Board. conflicts of interest and continuous by the Employees of corruption in
monitoring of the status of any of its forms and manifestations.
the Company’s compliance system. For these purposes, Atyrau
These documents serve as the main Refinery LLP takes all the necessary
regulatory compliance documents measures to implement the Policy
COMPLIANCE CONTROL for the Atyrau Refinery and are at all levels of the organization and
mandatory for all of its employees, bring its content to the attention
regardless of their position. of its Employees and other
stakeholders. Atyrau Refinery LLP
Abdirassilov Baurzhan The Anti-Corruption Policy of Atyrau contributes to raising the level of
Head of Risk Management and Management Systems Refinery LLP sets out the goals anti-corruption culture of Employees
Development Division – Compliance Officer and objectives of the Company in through their regular training in
the field of combating involvement in the basic requirements of the Policy
“The senior management of the Company holds a strong corruption activities, defines the legal and its practical application.
position in regard of anti-corruption issues. In its daily basis and key principles of this
work Atyrau Refinery is guided by the norms of applicable combating, describes the measures Training on anti-corruption
law and adheres to the principle of “zero” tolerance for taken by Atyrau Refinery LLP to compliance was conducted for
RISK MANAGEMENT
any behavior that is incompatible with the principles of prevent corruption, establishes the employees of Atyrau Refinery LLP.
business ethics, in particular, dishonest and illegal ways anti-corruption obligations of For this, a special company will be
of conducting business. the Employees and other persons, involved, providing training and
as well as responsibility for non- knowledge testing services.
The Atyrau Refinery makes every effort to ensure that compliance (improper execution) of
the Company and its business partners comply with the provisions of this policy. When organizing the training,
the highest ethical norms and standards, including the goals and objectives of
respecting basic human rights, promoting fair and equal The Commitment in the field the Compliance Policy, the trainees
treatment of all people, ensuring safe and healthy of combating corruption for all category, the type of training,
working conditions, protecting the environment and employees of Atyrau Refinery LLP depending on the time of its
exercising financial and business activities in accordance was developed and implemented, implementation, were taken into
ATTACHMENT
with ethical standards.” with which all employees were account. Training will be conducted
personally acquainted against their primarily for the following categories
signatures. of employees:
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ABOUT THE REFINERY

■
■
management;
newly hired employees;
The Confidential Information
Policy is in force, which establishes
CORPORATE ETHICS
■ employees responsible for the procedure for receiving and
preventing corruption in processing information about signs
the company; of corrupt behavior or fraud using The Atyrau Refinery has a Code of the Company to the same
■ employees whose activities are the methods provided – a hotline of Corporate Ethics, which sets extent, regardless of their position.
associated with specific corruption or a single e-mail, a procedure for out corporate values, defines Each employee of the Company
risks. responding to reported facts. essential principles and rules of must read, accept and confirm in
business conduct and relations writing the obligation to follow
The Policy for the Settlement In case of detection of potential with stakeholders. The Code the provisions and requirements of
of Conflicts of Interest Among or already committed violations provisions apply to all employees the Code.
Employees and Officials of Atyrau of the legislation of the Republic
Refinery LLP manages conflicts of Kazakhstan, standards, rules,
The main corporate values of Atyrau Refinery:
of interest, and also defines and provisions of the Atyrau
requirements for the behavior of Refinery, including cases of abuse
employees and officials, compliance of official capacity, abuse of Safety
■ We care about the safety of our employees, partners and the society
with which will ensure clear and authority, damage to the plant or
■ We are uncompromising in health and safety issues
impartial performance of their its counterparties, the employees ■ We care about the environment
■ We care about our reputation
official duties. must report the violation to
the Hotline at [email protected]
In the event of a Conflict of Interest, and free telephone line: 8 (800)
the Employee and/or the Official 080 – 30-30. The message can be Justice
■ We act honestly
must immediately and fully disclose sent anonymously. After receiving ■ We keep our word and do not tolerate double standards
information about the Conflict of the request, the compliance officers ■ We give everyone equal opportunity and we are fair
Interest and actively contribute to its responsible for reviewing reports of
settlement. To resolve the Conflict such violations will communicate
Loyalty
of Interest, a commission is formed, the further procedure. ■ We accept that the interests of the Company are
which includes all interested parties.
RISK MANAGEMENT
higher than our own
■ We are not indifferent to the Company and take care
The Atyrau Refinery guarantees of everything that we have
the confidentiality of received ■ We are one team
messages, information about
the person who reported violations, Growth
as well as about other persons ■ We invest in people and technology
■ We are changing for the better and constantly growing,
involved. The Atyrau Refinery do not aiming to become a global company
tolerate any discriminatory measures ■ We manage changes
against indifferent and concerned
persons who report impending or
committed violations. Responsibility
■ We make deliberate decisions
ATTACHMENT
■ We learn from mistakes
■ We are persistent and disciplined
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CORPORATE PRINCIPLES
The activities of the Atyrau Refinery are Ethical Conduct Justice Environmental Consciousness
based on the following principles: The Atyrau Refinery employees’ The Atyrau Refinery supports The Atyrau Refinery understands
decisions and actions should be the principles of meritocracy, justice its responsibility to society and
Openness based on high moral values, such and objectivity, creates optimal future generations for the rational
The Atyrau Refinery strives for as respect, honesty, openness, team conditions for each employee for new use of natural resources and
maximum openness and reliability spirit and trust, honesty and justice. achievements and fairly evaluates the preservation of a favorable
of information about the Company, The Atyrau Refinery employees carry the contribution of each employee environment, ensuring energy saving,
its achievements and results of out their activities on the basis of to the activities of the Company; reducing the negative impact on
activities, taking into account respect, tolerance, benevolence and contributes to the formation of a the natural environment, introducing
the protection of information decency. culture of understanding, interest innovative technologies aimed
constituting a commercial secret and support of employees at all at careful and conscious use of
and other information protected by Respect levels. resources and time, increasing labor
the legislation of the RK. The Atyrau Refinery respects productivity.
the rights and interests of all Intolerance to Corruption
Responsibility Stakeholders, which follow The Atyrau Refinery does not Safety
The Atyrau Refinery is aware of from the legislation, concluded tolerate corruption in all its The Atyrau Refinery considers human
its responsibility for the impact agreements, or indirectly within forms. In cooperation with all life as the highest value and strives
on the economy, environment and the framework of business stakeholders, the Company strives to pay special attention to supporting
society towards the Partnership relationships. to develop a constructive dialogue healthy lifestyle and protecting
Participants and the public, for in order to raise their awareness the health of employees. The Atyrau
the growth of long-term value and Legitimacy of the Company’s actions taken Refinery aims to ensure labor safety,
sustainable development in the long Decisions, actions and behavior in the framework of combating preservation of life and health of
run. of the Atyrau Refinery and its corruption. its employees in accordance with
employees must strictly, completely international standards.
RISK MANAGEMENT
Transparency and rigorously comply with Non-allowability of Conflicts of
The Atyrau Refinery’s decisions legislation of the Republic of Interest
and actions should be clear and Kazakhstan, the Company’s Charter, In relations with the Stakeholders,
transparent for stakeholders the Development Strategy and the Atyrau Refinery, counting on
in the established manner. the decisions of the Participants. the establishment and maintenance
The Atyrau Refinery honestly and of fiduciary relations, in which
promptly informs Participants and Expertise the parties shall act towards each
Stakeholders about the state of The Atyrau Refinery strives to other honestly, conscientiously,
affairs. improve qualifications of its fairly and loyally, takes measures
employees, providing the necessary to prevent, identify and eliminate
labor conditions, opportunities conflicts of interest.
ATTACHMENT
for professional and individual
development.
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INTERNAL AUDIT Internal audit items
Item Name of internal audit items for Number of
Notes
No. IMS and risk management audits
Executive management, structural divisions of
1 Central Office, Plant Management 24
the plant management
At the Atyrau Refinery, the Risk Management in accordance with
Conversion and Fine
Management and Management applicable laws, regulatory and other 2 9 Processing units
Desulfurization Refinery (CFDR)
Systems Development Department requirements of the Republic of 3 Coke and Sulfur Production (CSP) 5 Processing units
conducts internal audits in Kazakhstan. Production and Transportation of Feedstock tank farm, loading racks for oil
order to verify adherence to 4 5
Oil Products products loading
the approved procedures for Internal audits are an integral Heat Energy and Electricity Subdivisions for the production of steam,
5 4
integrated management system part of effective functioning of Production electricity, chemically treated water
by all departments, as well as to the integrated management system 6 Central Plant Laboratory 3
Analytical control of in-demand and commercial
products
identify ways to improve the Quality of the Company and allow timely
7 Deep Conversion Refinery (DCR) 7 Processing units
Systems, Occupational Health and identification of problems requiring a
Safety, Environmental and Energy solution by executive Management. 8 Aromatic Hydrocarbon Production 5 Processing units
9 Outsourced Processes 5 Ancillary processes
TOTAL: 67 Subject to annual internal audit
Internal Audit Cycle of Atyrau Refinery LLP
Due to the switch to a remote method of work, it was difficult to conduct

internal audits at the plant in 2020. In total, 31 audits were performed in
2020, based on the results of which 89 recommendations were issued.
Internal audit
planning
Monitoring the Conducting audits

in the shops and
RISK MANAGEMENT
implementation of
recommendations divisions of
the plant
Issuing
recommendations
based on audit results
ATTACHMENT
Risk
management
142 Risk management system

144 Risk map
146 Implementation of an internal control system
147 Key risks
ОБЪЕМ ПЕРЕРАБОТКИ SAFETY

СЫРЬЯ ПО ИТОГАМ QUALITY
5,016
2020 ГОДА СОСТАВИЛ STABILITY
млн
тонн
ANNUAL REPORT 2020
ABOUT THE REFINERY

RISK MANAGEMENT Organizational chart of the corporate risk management system
SYSTEM of Atyrau Refinery LLP
The corporate risk management The Atyrau Refinery applies an
system is a key component of automated risk management SUPERVISORY
the corporate governance system system (hereinafter ARMS) to timely BOARD
aimed at timely identification, identify, assess, analyze, manage and
assessment, monitoring and monitor the state of risks, launched
mitigation of potential risk as part of the implemented project
events that may negatively affect of KazMunayGas NC JSC (KMG) for
the achievement of the Atyrau the Group of Companies.
Refinery’s strategic and operational
goals. ARMS allows to significantly reduce
BOARD
time and labor resources, promptly
Realizing of the importance of generate information for making
corporate risk management and management decisions taking into
risk management system on a account risks, provide up-to- date
consolidated basis, since 2017 information on all significant risks
the Atyrau Refinery has been working of Atyrau Refinery, affecting the KPIs
to improve the risk management achievement, with action plans for Goal Owners
system. In particular, the indicator their mitigation.
“Implementation of a vertical process
for risk management” was included The Company’s risk culture is
in the map of key performance developing along the path of
RISK MANAGEMENT
indicators of managers in charge of involving all structural divisions
key areas. This indicator characterizes and outsourcing organizations
the degree of implementation of a in the risk management process,
set of measures aimed at introducing and involves regular exchange of Goal Owners
a vertical process for managing information between the Supervisory
production and non-production risks Board, the Board and Atyrau Refinery
of the Atyrau Refinery. employees.
Risk-Factor
ATTACHMENT
Owners
142 143
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RISK MAP 5
Inherent Risk-Factors
5
Remaining Risk-Factors*
4 R1 R6,R7 4
Impact
R6*,
3 R2 3
Impact
R7*
R4,R5, 2 1* 2*
2 R3
The Refinery’s activities are exposed The Supervisory Board annually R8
to a range of risks in the following approves the Atyrau Refinery’s Risk 1 1
R4*,R5*,
R3*
R8*
areas: Register, the Risk Map, the Risk
1. production risks associated with Management Action Plan. 1 2 3 4 5 1 2 3 4 5
the production process; Probability Probability
2. non-production risks associated According to the Risk Register *taking into account the implementation of preventive measures
with non-production business and the Risk Map for 2020, 8 risks No. Risk-Factor
processes; were identified and assessed in Non-Production Risks
3. risks of the external environment, the specified areas. For each risk, R1 Unlawful actions of a corrupt nature
lightly managed or unmanaged. we developed measures to manage
R2 Unlawful actions against company assets
them, and risk owners have been Production Risks
identified. Ongoing monitoring R3 Natural influences, disasters
of the dynamics of key risks and R4
Inconsistency of the actual technological modes of equipment operation with the technical standards
the implementation of measures to of their operation
mitigate them is performed based Inconsistency of the actual technological modes of equipment operation with the technical standards
R5
of their operation
on the results of which a quarterly R6 Deterioration of an employee’s state of health
report is sent to the Board and R7 Deterioration of an employee’s state of health
the Supervisory Board. R8 Late delivery of spare parts and materials for repairs
RISK MANAGEMENT
ATTACHMENT
144 145
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IMPLEMENTATION OF AN To constantly maintain and improve knowledge on
INTERNAL CONTROL SYSTEM the risk management system, the internal control system
and the business continuity management system and to
further support work in these areas in the services and
divisions of the plant, we conducted a five-day online
training on the topic “ICS and BCMS Fundamentals”.
35 specialists of the plant took part in the training.
Avezov Zhetkerbai
Risk Manager of the Risk Management and As part of improving the risk management system at
Management Systems Development Division Atyrau Refinery LLP, we will continue to develop and
implement the business continuity management system
“Within the frames of the KMG Project (risk management leading to business interruption) in
“Implementation of a new risk management model”, 2021.”
the plant adapted and approved methodological
documents on the internal control system
(hereinafter – ICS).
ICS is a set of processes and procedures, norms
of behavior and actions that contribute to
effective and rational activity, aimed at ensuring KEY RISKS
the achievement of operational goals and
minimizing process-level risks in the business
process (hereinafter – BP).
The planned work on managing The Atyrau Refinery’s production
ICS implementation allows management or the key risks of the plant in 2020 activity is potentially hazardous,
employees to prevent or timely detect wrong was completed in full. Atyrau carries a high risk of unfavorable
actions, in the course of the normal performance Refinery took appropriate measures environmental impact, harm to life,
RISK MANAGEMENT
of the functions assigned to them. The “Closing to respond to key risks in order health of production personnel and
the period and preparation of separate to reduce the probability of their property as a result of emergency
financial statements” BP was chosen as the first occurrence and to minimize/prevent and abnormal situations, man-made
recommended for the ICS approach application, in possible financial losses. disasters at production facilities
which the processes of the first, second and third and sites, as well as a result of
levels were defined, a matrix of risks and process unlawful actions of third parties.
controls was developed with current control Production Risks The consequences of the realization
procedures covering the identified risks. of these risks negatively affect
The risk of adverse environmental the reputation, production and
impact, harm to life, health of financial activities of the plant.
production personnel and property as
ATTACHMENT
a result of emergency and abnormal In order to minimize production
situations, man-made disasters at risks, the Atyrau Refinery carries out
production facilities and sites. the following activities:
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1. ensuring timely maintenance Under the KMG’s Corporate Social Risk Coronavirus Pandemic Risk
and repair of equipment in Reinsurance Program, the purpose of
accordance with the requirements which is to establish the procedure Social dissatisfaction of workers The threat of spread of the
of regulatory documents; for placing a corporate risk insurance can lead to unauthorized strikes. 2019-nCoV coronavirus strain
2. timely reconstruction, program to ensure high-quality The main directions for reducing in 2020 had a huge impact on
modernization; protection of property interests the risk of unauthorized strikes the economy of the whole country,
3. calculation of the optimal and responsibility of KMG and are monitoring and analysis including the activities of the Atyrau
technological regime and its affiliates, an annual voluntary of the social climate, timely Refinery.
development of optimal operating property insurance contract is development of measures to address
modes of equipment; concluded at the Atyrau Refinery problematic issues of personnel. Possible consequences for
4. timely diagnostics and against damage (against the risk For these purposes, the Atyrau the Company included:
identification of potentially of accidental loss, loss or damage) Refinery has established effective ■ the 2019-nCoV strain infection
dangerous factors that can lead to as a result of the insured event internal communications between of plant workers, spread of
corrosion; occurrence. The Atyrau Refinery is the employer and employees, the disease on the territory
5. advanced training of service included in the KMG’s Corporate obligatory reporting meetings of of the plant among workers
personnel. Reinsurance Program. the first head with labor collectives, of the plant or contracting
meetings of management with companies;
In order to prevent accidents at work, Collection of information and production personnel and ■ decrease in the receipt of
the plant implements organizational preparation of a report for others, which are tools for both applications for the shipment of
and technical measures to ensure: the insurance market on the current monitoring the social climate and oil products;
1. safe performance of works, state of production facilities, jointly resolving issues raised and ■ increase in borrowing costs in USD
prevention of injuries and inspection of industrial sites and conducting explanatory work. in 2020 due to an exchange rate
occupational diseases; a detailed study of fire-prevention increase.
2. timely training and knowledge and emergency systems existing The current platform for active
testing on issues safety and in the Company, as well as other dialogue with the youth is the youth To mitigate possible impacts
labor protection, the presence measures and technical means council. The Atyrau Refinery takes an of the pandemic, the following
at the place of work of work to reduce insurance risks, are active part in the system of unified measures have been taken:
managers and officials responsible carried out as part of a risk survey youth policy of KMG, which provides ■ optimization of operating costs,
RISK MANAGEMENT
for their work; (insurance engineering inspection). for the formation of an active life revision of investment costs;
3. internal control in the field of Recommendations issued during position among young workers, their ■ strengthening the measures of
safety and labor protection. the risk survey, taking into account involvement in social and industrial physical access to the plant’s
the world practices of labor life. territory for visitors and workers
protection and industrial safety, arriving from the countries
are applied at the plant to increase included in the list determined
the accident-free operation of by the National Center for Public
processing units and equipment. Health of the MH RK, including
the first, second and third
categories, as well as citizens of
the RK arriving from regions of
ATTACHMENT
the country;
148 149
ANNUAL REPORT 2020
ABOUT THE REFINERY

■ introduction of a moratorium on in relation to additional taxes, fines The Atyrau Refinery has developed Atyrau Refinery LLP carries out
the secondment of plant workers and penalties based on an unlawful and approved the following a number of positive changes in
both to foreign countries and interpretation of tax legislation documented procedures: the loan portfolio in relation to
across the territory of the Republic following the results of tax audits. ■ the Anti-Corruption Policy; currencies and interest rates by
of Kazakhstan; ■ the Policy for the Settlement re-financing and restructuring
■ reduction of the number of To minimize tax risks, the Company of Conflicts of Interest Among foreign currency loans in tenge and
meetings. Mass cultural events improves tax administration Employees and Officials; on more favorable terms in order to
were cancelled. Video conferencing processes and conducts tax audits. ■ the Confidential Information Policy. minimize this risk.
is used for operational planning
meetings and other meetings. Corruption Risk The plant carries out consistent Reputation Risk
work on the implementation and
Allocation of resources not in strengthening of internal control The Atyrau Refinery is exposed
Non-Production Risks the best interests of the Atyrau over corruption, prevention of illegal to reputational risk affecting its
Refinery, causing damage to and unfair actions both on the part image and business relationships
Liquidity Risk the Atyrau Refinery in order to obtain of the Atyrau Refinery employees with investors, partners and other
personal gain, any facts of fraud and and third parties, establishing a stakeholders. The Atyrau Refinery
The key risks for the Atyrau corruption are completely intolerable procedure for conducting internal carries out a set of measures
Refinery are liquidity- and financial at the Atyrau Refinery, regardless of investigations into the facts of to manage this risk, including
stability-related risks. Lack of the amount of financial damage. unlawful and unfair actions by monitoring publications in the media
sufficient financial resources may the plant employees. The Atyrau about the plant’s activities, publishes
lead to non-compliance with As a subject of the Law of Refinery has a trust line. articles about the plant in the media,
debt covenants and jeopardize the Republic of Kazakhstan “On organizes management speeches
the implementation of strategically Combating Corruption” and other to highlight various aspects of
vital projects and maintaining high legislative acts on anti-corruption External Risks the plant’s activities, and also timely
rates of development. To overcome issues, the Atyrau Refinery responds to negative publications in
these risks, along with the use of has undertaken the following Currency Risk media sources.
technologies, the Atyrau Refinery obligations:
is focused on improving operating 1. anti-corruption monitoring The risk is an increase of the tenge
RISK MANAGEMENT
activities, clearly prioritizing capital implementation; rate against the US dollar.
expenditures, and streamlining 2. analysis of corruption risks
the Partnership’s asset and project (internal reasons); The main part of the Atyrau Refinery’s
portfolios. 3. formation of an anti-corruption debt portfolio – loans denominated
culture; in US dollars, which were attracted
Tax Risk 4. establishment of organizational to finance strategic modernization
and legal mechanisms to ensure projects with the participation
The Atyrau Refinery is exposed to tax accountability, controllability and of foreign contractors. In this
risk, the main external risk factor of transparency of decision-making connection, the growth of the tenge
which is the varying interpretations procedures; against the US dollar may lead to an
of the tax legislation of the RK. 5. acceptance and adherence to increase in the cost of debt service
ATTACHMENT
The Atyrau Refinery cannot influence business ethics; and an increase in the cost of loans.
the decisions of the tax authorities 6. prevention of conflicts of interest.
150 151
SAFETY
QUALITY
Attachment.
Financial statements STABILITY
154 Independent auditor’s report

160 Statement of financial position
161 Statement of comprehensive income
162 Statement of cash flows
163 Statement of changes in equity
164 Notes to the financial statements
202 Glossary INCREASE OF GASOLINE
STORAGE VOLUME IN REFINERY
57
TANK FARM IN 2020 UP TO
thous.
tons
ABOUT THE REFINERY SUSTAINABLE DEVELOPMENT CORPORATE GOVERNANCE RISK MANAGEMENT ATTACHMENT
155
ANNUAL REPORT 2020
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ABOUT THE REFINERY

Glossary
Atyrau Refinery “Atyrau Refinery” Limited Liability Partnership KPI Key performance indicator
JSC Joint Stock Company CT Computed tomography
DBK JSC “Development Bank of Kazakhstan” JSC CSC Computer Simulator Complex
AMS Automatic monitoring system CGDF HU Combined gasoline and diesel fuel hydrotreating unit
AGMS Automatic gasoline mixing station CGDF HU Combined gasoline and diesel fuel hydrotreating unitt
ATPCS Advanced Technological Process Control System CLPK Professional knowledge level control
ARMS Automated risk management system CCLG Catalytic cracking light gasoil
ATS Automatic telephone station MPF Mechanical purification facilities
AUOG Safi Utebayev Atyrau University of Oil and Gas IFRS International Financial Reporting Standards
AOSLU Automatic on-spot loading unit AIFC Astana International Financial Center
CCG Catalytically cracked gasoline MEG and NR RK Ministry of Ecology, Geology and Natural Resources of the RK
Block AT Atmospheric-tubular block Block VT Vacuum-tubular block МBA Master of Business Administration
HT block hydrotreating block
PJSC Private Joint Stock Company
HT GS block HT GS block ICGTIP NJSC “International Center for Green Technologies and Investment Projects” NJSC
HT and DDF block Block for hydrotreating and dewaxing of diesel fuel OGCC Oil and Gas Construction Company
BP Business process VAT Value Added Tax
GDP Gross domestic product BAT Best available technologies
WHO World Health Organization NC National Company
GOST All-Union State Standard characterizing, describing and providing a list IA Intangible assets
of requirements made up by state certification bodies in order to ensure
compliance with the quality and production of goods) NSEI Non-state educational institution
SB Subsidiary bank OR Oil refinery
EBRD European Bank for Reconstruction and Development NGO Scientific and educational department or non-governmental organization
RISK MANAGEMENT
RC Residential compound SB Supervisory Board
CJSC Closed Joint Stock Company OJSC Open Joint Stock Company
ALV Artificial lung ventilation EIA Environmental Impact Assessment
IMS Integrated management system ECL Expected credit losses
IEPS Information e-purchasing system OPEC The Organization of the Petroleum Exporting Countries
CPL “Central plant laboratory” test center E Environment
KGNT “KazGiproNefteTrans Engineering Company” Limited Liability Partnership GMP General Meeting of Participants
AORC Advanced Oil Refining Complex PAH Production of Aromatic Hydrocarbons
KMG “KazMunayGas National Company” Joint Stock Company PDOR Production of Deep Oil Refining
ATTACHMENT
APC Aromatics Production Center PHF Pentane and Hexane Fraction
EF Efficiency factor PTPP Production and Transportation of Petroleum Products
CIT Corporate Income Tax CSP Coke and Sulfur Production

PKOP “PetroKazakhstan Oil Products” LLP
202 203
ANNUAL REPORT 2020
ABOUT THE REFINERY

PKOSI PetroKazakhstan Overseas Services Inc. NWF National Welfare Fund
SW Software BPA ITUECPRI Branch of the Public Association “Industrial labor Union of Employees in
the Chemical, Petrochemical and Related Industries”
PORDD Production of oil refining and deep desulfurization
ES Emergency situation
SPM Scheduled preventive maintenance
EDP AVDU-3 Crude desalter unit (3 million tones/year)
DED Design and estimate documentation
EDP ADU-2 Crude desalter unit (2 million tones/year)
LPGSP LLP Liquefied Petroleum Gas Storage Park LLP
GRI GRI standards (Global Reporting Initiative) for reporting in the sphere of
PCR Polymerase chain reaction
sustainable development
IEC Industrial environmental control
ISO International Organization for Standardization
RSE Republican State Enterprise
NCOC North Caspian Operating Company
RSUOG I.M. Gubkin Russian State University of Oil and Gas
PEP Performance Excellence Process
RoK Republic of Kazakhstan
REACH International certification, Regulation (EC) adopted to improve personal and
RNA Ribonucleic acid environmental safety from all possible risks in connection with chemicals
EO Executive officers exposure
IAS Internal audit service

ICS Internal control system
SPZ Sanitary protection zone
PPE Personal protective equipment
MM Mass media
SSB Secretary of the Supervisory Board
JV Joint Venture
BCMS Business continuity management system
RMS Risk management system
APCS Advanced Process Control System
TAME Tert-amyl methyl ether
RISK MANAGEMENT
TAME Tert-amyl methyl ether
SMW Solid municipal wastes
Inv. Inventory
M&R Maintenance and Repair
TCO Tengizchevroil
FER Fuel and energy resources
USPTU Ufa State Petroleum Technological University
DCU Delayed coking unit
CC Coke calciner
HPPU Hydrogen production and purification unit
ATTACHMENT
TNP Technical nitrogen plant
FIFO First In, First Out – inventory items evaluation method meaning that
inventories registered first are written off first.
204 205
FEEDBACK GETTING CONTACTS
The purpose of this annual report is publication of the most important facts and Full name: Atyrau Refinery Limited Liability
information on “Atyrau Refinery” LLP activity. We strive to develop the practice of Partnership
information disclosure on a constant basis to all concerned parties. And in order Abbreviated name: Atyrau Refinery LLP
to improve our reporting it is crucial to get a feedback. Location address: Republic of Kazakhstan, Atyrau city
Postal address: 060001, Atyrau city, Z. Kabdolov str.
This year we applied to the representatives of a number of non-government Internet address: www.anpz.kz
organizations requesting to review this annual report draft, comment and
give their proposals. Galina Chernova, Shynar Izteleuova, Viktor Sutyagin, Artur
Shakhnazaryan and Arman Khairullin in particular responded our request.
PR issues
We got very valuable comments which influenced the contents of this Telephone: +7 (7122) 25-98-75
document. Some of the comments were taken into account in this annual
report; we added additional information and corrected information submission. Secretariat
In particular, we see that environmental protection issues are of the greatest Telephones: +7 (7122) 25-93-50; +7 (7122) 25-96-67
interest and we will continue to develop this issue in a high-quality format. e-mail: [email protected]
Obtained feedback was very substantive for us and useful. We are very grateful
to our colleagues from NGOs. We will continue to develop advisory process
with concerned parties in relation to information disclosure when preparing Hotline of the Samruk-Kazyna Joint-Stock Company Group of Companies
subsequent annual reports. In accordance with the Initiative Reporting Policy, you can report any
happened or suspected facts of theft, fraud, corruption and other violations
of the basic principles of conducting business or the Code of Conduct of
Samruk-Kazyna JSC.
Telephones: 8 800 080 30 30; 8 702 075 3030
e-mail: [email protected] nysana.cscc.kz

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SAFERTY

Key achievements in 2020 2

Corporate Governance  110

ABOUT THE REFINERY

AI-92 208 thous.

ABOUT THE REFINERY

ABOUT THE REFINERY

ABOUT THE REFINERY

ABOUT THE REFINERY

ABOUT THE REFINERY

IN 2020, RECORD 36 Financial and economic results

PETROCHEMICAL 48 Business initiatives

ABOUT THE REFINERY

ABOUT THE REFINERY

ABOUT THE REFINERY

Naphtha НT Light naphtha Parisom Isomerate

KGF Gasoline and diesel

Coker gasoil + LCC TAME +

ABOUT THE REFINERY

organizations led to a cutback in

Gross domestic product by production method, bln tenge

ABOUT THE REFINERY

a decrease in oil and petroleum

ABOUT THE REFINERY

3,000 4,000 5,000 6,000 60 70 80

ABOUT THE REFINERY

the repair time

at introducing the Mx™ (Perfect Maintenance)

KZT 9.9 bln

ABOUT THE REFINERY

Pump sets with mechanical seals Centrifugal compressors

PIM Module PIM Module

Column-vessel equipment Piston compressors Air-cooling units

ABOUT THE REFINERY

ABOUT THE REFINERY

ABOUT THE REFINERY

at modernizing the mechanical treatment facilities and

to the choice of projects and to companies to be funded, and

take place in June 2021.

ABOUT THE REFINERY

ABOUT THE REFINERY

Petrochemical products are exclusively for export, since

From the data, provided in the report, you also see a

ABOUT THE REFINERY

PETROCHEMICALS AND UKRAINE

LIGHT PETROLEUM ROMANIA

44.29 thous. tons

AI-92 К4/К5 ARAL SEA

254.28 thous. tons SYRIA

Comparative cost in USD Comparative cost in USD

petroleum product is an export-oriented petrochemical

ABOUT THE REFINERY

ABOUT THE REFINERY

Target: creation of a tool for an

Computer simulation complex out under the supervision of

ABOUT THE REFINERY

ABOUT THE REFINERY

As part of implementation of apparatus, ALV apparatus. There

ABOUT THE REFINERY

ABOUT THE REFINERY

Key achievements in 2020 2

Corporate Governance 110