STRATEGY

Strategy

The strategic goal of TOO Kaz Oil is to become a large-scale, vertically integrated, company, with growing production, high-tech refining and stable sales channels. The company also seeks to achieve a balance between production and refining output.

Achieving this goal will require the following

In exploration and development

• Optimal organic production yield of 15 million tons per year from existing oilfields, and the maintaining of that level for several years
• Beginning commercial production at the Khvalynskoye gas fields in 2020, reaching peak production output before 2021
• Inorganic growth of production and reserves through acquisitions and licensing
• Cost control within the controlled part of the unit costs

In refining and petrochemicals

• Increasing refining depth and output of light petroleum products to the level of the best European refineries
• Improving commercial production quality and provide the technical infrastructure to enable 100% of motor fuel production to meet the Kazakhstan government’s Technical Regulations
• Increasing operational preparedness and technological flexibility with respect to production
• Controlling and optimizing production costs

In commerce

• Developing controlled distribution channels to the end user (small wholesale, retail, export)
• Improving the operational efficiency of all sales channels
• Further developing and promoting the TOO Kaz Oil brand

In corporate governance

• Improving: corporate governance of TOO Kaz Oil as a vertically integrated structure, the legal system; the ownership and organizational structures
• Building an integrated system for planning, monitoring and management reporting
• Developing a comprehensive system of personnel management and motivation
• Creating a system for developing TOO Kaz Oil image as that of a vertically integrated oil company, and promoting the brand

Technologies & Innovations:

TOO Kaz Oil assigns a high priority to the development and deployment of advanced technologies. Achievements in innovation create major competitive advantages for the Company and are an important factor in its dynamic development.

Priorities in the area of scientific-technical development and innovation at TOO Kaz Oil include improving production quality and safety in addition to raising the level of business efficiency and environmental friendliness.

With a view to achieving these objectives, the Company is upgrading its existing production capacities, optimizing technological processes, implementing the latest high-tech equipment and applying industry experience from around the world. The result will be improved quality of management and control of business processes as well as manufacturing facilities that meet modern industrial safety standards.

The Scientific-Technical Council acts as TOO Kaz Oil management center for the introduction of innovations and promising technologies.

The Council collects structures and analyzes information required to make recommendations on current and future issues related to the company’s scientific, research, and manufacturing activities. It assists management in defining technical policy, for the Company on the whole as well as for its separate businesses. Specifically, the long-term plan for technical development.

TOO Kaz Oil specialists participate in public and government organizations that are focused on research and innovation, implementing joint projects with international companies and developers.

Innovations in Exploration & Production

Innovations in Oil Refining

TOO Kaz Oil is introducing technological innovations in the areas of oil-refining and petrochemical production that will enable it to manufacture petroleum products meeting the most rigid environmental standards and further increase refining depth. The implementation of modern technologies allows the Company to optimize costs, conserve energy and ensure industrial safety.

Environmental protection

TOO Kaz Oil is deploying new eco-friendly, energy-saving technologies that will mitigate the negative impact of its production activities on the environment.

Development of Information Technologies
One of TOO Kaz Oil priorities is to create a modern IT infrastructure that will optimize business processes and work in an integrated information environment.

Environment:

Environmental protection and industrial health and safety go hand in hand. The Company is equally committed to both issues not only because it must meet strict government regulatory requirements but also because it recognizes that a responsible attitude toward the earth’s resources helps guarantee the health and welfare of future generations.

TOO Kaz Oil complies with government legislation on the environment by implementing a strong environmental policy. The Company constantly monitors the state of the environment in the regions where it conducts industrial operations. Worn equipment is repaired or replaced in a timely fashion to avoid accidents. In addition, TOO Kaz Oil takes a number of measures to reduce the negative impact of its industrial activities on the environment.