Community
Social review
Nostrum engages both formally and informally with the communities in which we operate and strives to be responsive to stakeholder feedback, including from local residents, suppliers and government.
Nostrum seeks to foster a culture of openness in regards to community engagement. The Company provides an avenue for feedback through an online portal and proactively engages with staff and contractors regarding appropriate behaviour towards local residents.
Over
US$100,000
granted to local schools in 2018
Additionally, we support our local communities through financing social infrastructure and community projects. In 2018 key initiatives included:
Support of the ‘Akzhaik’ Charitable Foundation, including financing of the ‘Tugan Zher’ social project.
This involved the funding of:
- Local historical educational programmes; ecology and landscaping;
- The study of regional history;
- The restoration of cultural sites and historical monuments;
- Infrastructure support;
- Assistance to youth representatives; and
- Sponsorship of WKO children’s participation in the ‘Burabay Summer Fest’ children’s festival.
Providing for social projects in the Zelenovskii Area, the location of the Company’s field and supporting infrastructure, involving:
- Improvements to Yanvartsevo Village including street lighting and repairing monuments, as well as support for the local primary school and other festive events;
- Financing of a children’s playground in Sulukol rural district and support for the local secondary school;
- Part-financing of a recreation park construction in Beles rural district and support for the local secondary school;
- Financial support of the ‘Zhas Kanat’ Youth Association to assist with a festive concert dedicated to the city day;
- Ongoing sponsorship of the West Kazakhstan Volleyball Federation to support local youth teams;
- Financing of acquisitions and construction at local regional ecological and biological centre (city zoo);
- Funding of regional orphanage, including repair of the ‘Zhuldyz’ rooms and medical post and purchase of furniture; and
- Financial support of the Baiterek Public Association, an organisation dedicated to assisting those with cerebral palsy.
In addition, grants totalling over US$100,000 were made to sixteen schools in the region in order to improve materials and technical capabilities.
Use of Group facilities
The Group allows the use of certain company facilities by members of the community when it can be of assistance. This includes our medical staff and transportation being used in cases of emergency to provide first aid and deliver local residents to the hospital. Additionally, our Fire Department provides community support in the event of wildfires. The Company also offers the local government support with the clearing of rural roads and driveways when state machinery is not capable, including during the winter of 2018-2019 when the community dealt with record-breaking amounts of snow.
A community partner
Payment to governments
Nostrum is committed to transparency in its business activities and payments to governments. We have a formal Public Relations and Government Relations procedure which regulates our relationships with the local community and government, and it details how and why we engage with various stakeholder groups.
In 2017 a total of US$ 32,909,896 was paid to governments by Nostrum and its subsidiary undertakings. We will report on 2018 payments to governments in the first half of 2019.
Anti-corruption and bribery policy
For more information view the Group’s Anti-corruption and bribery policy.
Liquidation fund contribution
Under the terms of the Chinarevskoye PSA and the subsoil use agreements for Rostoshinskoye, Yuzhno-Gremyachinskoye and Darjinskoye, Nostrum is building up a liquidation fund of US$23 million to provide funds for the removal of oil and property at the end of the PSA. The fund will be used to eliminate the consequences of operating activities, namely the conservation and liquidation of drilled wells and the elimination of other facilities. We have engaged a contractor to prepare a liquidation project which will be completed by the end of 2019 and will reflect the details of all liquidation activities, including the specific distribution of funds to offset infrastructure assets. This project will subsequently be approved by the Company, the local community, and government. At the end of 2018 US$7.02 million was held on restricted cash accounts as a liquidation fund deposit (2017: US$6.66 million).
Spend with suppliers
We are committed to partnering with local companies and in 2018 we spent 58% of our supplier budget with Kazakh companies.
Liquidation Fund chart
Spend with suppliers ($m)
