Social Responsibility
Social review
Nostrum is a proud community partner and strives to foster a culture of openness and engagement. We are pleased to be able to offer social and financial support to promote the wellbeing of local residents.
2019 Key initiatives
We support our local communities through financing social infrastructure and community projects. In 2019 key initiatives included:
- US$118,814 funding of 20 regional secondary schools to purchase equipment and furniture. This included the purchasing of a school bus for the Beles District rural secondary school.
- Sponsoring of repairs for schools in Yanvartsevo and Sulukol villages.
- Support of the Zelenovkiy area biathlon team through the purchase of sports equipment.
Additionally during 2019 we supported 22 local individuals and public associations. These included:
- Support for festive events in the communities of Yanvartsevo, Beles and Sulukol, including an event organised by a disability support group.
- Sponsorship of a Beles school student to participate in an international karate competition where he won a silver medal.
- Support for artistic performances including a local singing contest and photography exhibition.
- Sponsorship of the Condensate Kazakhstan International Badminton Series.
- Funding of medical treatment for local individuals.
- Improvements to community infrastructure including street lighting, water and gas supply.
- Material assistance to veterans of the Second World War on the Victory day and restoration of the alley of oilmen on the 120th anniversary of the oil and gas industry of Kazakhstan.
- Summer camp sponsorship for children affected by emergency in the city of Arys.
Nostrum also provides support on a continuing or needs basis, such as special machinery in emergency situations in rural districts on occasions of extreme snow or infrastructure accidents and providing transport for rural children to participate in excursions to historical places within the region.
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 2019 a total of US$42,883,995 was paid to governments by Nostrum and its subsidiary undertakings. We will report on 2020 payments to governments in the first half of 2021. For more details please see the Governance page of our website.
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 2019 US$7.6 million was held on restricted cash accounts as a liquidation fund deposit (2018: US$7.02 million).
Spend with suppliers
We are committed to partnering with local companies and in 2019 we spent 62% of our supplier budget with Kazakh companies.
Liquidation Fund chart
Spend with suppliers ($m)
