10 Eni CEO Paolo Scaroni meets Kazakhstan's KPO launched new schools in WKO On the eve of the Constitution Day of The school for 1200 pupils in Uralsk President Nursultan Nazarbayev Kazakhstan and the new school year, KPO consists of five blocks, equipped with a lift, a successfully completed the construction of canteen, an infirmary, a conference room, a On 2 October Kazakhstan President several secondary schools in the Western gymnasium, an amenity block and a library. Nursultan Nazarbayev and Eni CEO Paolo Kazakhstan Oblast. The school has been fully furnished and Scaroni met in Astana for the VII Kazernergy As part of its social infrastructure equipped with all necessary equipment. The Eurasian Forum. development programme, KPO has construction was implemented by a local During the meeting, which was cordial constructed three new schools: one in Uralsk contractor Zhaikselstroy, LLP within one and constructive, Eni's CEO shared the town and two schools in the remote villages year. developments and results of the company's of Aksuat in Akzhaik District and Ushagash Thanks to the new school for 230 pupils, ongoing activities in the country with the in Karatobe District. In addition, KPO has the children of Aksuat village in Akzhaik President, affirming Eni's positive vision completed a major refurbishment of the District will now be able to receive same of the primary importance projects that secondary school in Uspenovka village in quality of secondary education as in a town. KPO contracted a local Bolashak-T, LLP Kazakhstan presents, such as the Kashagan Burlin District. The total KPO investments into these projects have exceeded $16 company to construct the school. and Karachaganak. million. Uralskstroyinvest, LLP, has constructed Futhermore, Eni's CEO informed On this occasion, KPO General Director, the school for 108 pupils in Ushagash village President Nazarbayev on the progress of Damiano Ratti, said, “We are proud that of Karatobe District. The two-storey school the agreement of cooperation and mutual children of Western Kazakhstan will now be has classes, a gymnasium, conference room, understanding, originally signed by National able to receive quality education in these canteen and a library. The classrooms have Company KazMunaiGaz and Eni in 2009, modern schools. Their construction was been fully furnished and equipped to high for the implementation of investments in agreed with the WKO Akimat in accordance standards. Kazakstan’s industrial infrastructure. with the RoK State Programme “100 schools, Two other schools for 198 pupils in The President was also informed of 100 hospitals”. All schools have been Koneketken village in Terekty District and joint projects for building a shipyard in the fully equipped with computer classes, are Saikuduk village in Akzhaik District are connected to Internet, and are being handed currently nearing completion as part of the over on a turn-key basis. We hope these KPO social programme. new schools will help bring the standards of Over the recent years, KPO has also education in the region to a new Caspian Sea and a gas turbine power plant level. in West Kazakhstan region. “KPO is committed to a Eni has been present in Kazakhstan sustainable future and allocates since 1992, where the company co-operates $20 million per annum for social the Karachaganak producing field and is infrastructure development in a partner of the North Caspian Sea PSA the region. Operating as a consortium to develop the Kashagan field responsible corporate citizen, and is involved in the North Caspian Sea KPO is working towards PSA project to develop the Kashagan field. achieving sustained success to the benefit of the local communities and the Republic of KPO General Director attended a session of the RoK Council Kazakhstan as a whole”, added Damiano. As it is known, the KPO social for the Improvement of Investment Climate in Astana programme is primarily focused On 12 September in Astana, Damiano on health, education, culture and completed refurbishment of rural schools Ratti attended a session of the RoK Council sporting facilities, according to the priorities set by the Western Kazakhstan Oblast in Dimitrovo and Karachaganak villages. In for the Improvement of Investment Climate authorities. As a result of this partnership, 2010, KPO donated new buses for six rural chaired by the Prime Minister Karim Massimov. a significant number of new schools and schools. International experts, heads of foreign diplomatic kindergartens have been constructed in the In addition, this year, KPO has sponsored missions and representatives of major subsoil region, as well as hospitals, roads and public summer holidays for more than 160 children user companies took part in the meting which utilities. All KPO social projects have been from a number of Burlin District villages focused on environmental administration and implemented using only Kazakh companies situated around the Karachaganak field. transition to the “green” economy. and vendors. During the speeches and the follow-up discussions the parties exchanged views on KPO promotes safety culture amongst the Aksai schoolchildren the most pressing issues of environmental governance in Kazakhstan’s oil and gas industry On 1st September KPO representatives visited the local studio of “Aksai Radio”, where and the ways of resolving those. Damiano Ratti, they spoke about the Road Safety Programme initiated and launched by KPO on the radio KPO General Director, in his presentation shared in July this year. about the Company’s achievements in GHG KPO was represented by Gaziz Khassanov, Infrastructure and Services HSE emission reduction and waste management. He Manager, Mira Berdigaliyeva, HSE Management System Documentation Specialist, Irina also made several practical proposals for the Cherkassova, Deputy Safety Manager and Cristiano Gioacchini, HSEQ Controller. During improvement of the current regulatory system the radio interview they told about the main objectives of the programme and future plans of and the way the companies’ environmental the Company on safety rules training for schoolchildren. performance is evaluated. Schoolchildren also took part in the airplay and answered questions on the Road Safety In conclusion of this very productive meeting, Quiz. The winners of the final program were awarded with prizes from KPO. it was agreed that the parties should continue the The main purpose of the Road Safety Programme is training of schoolchildren on the dialogue and join their efforts in this direction. road safety rules. During the project schoolchildren have learnt about the key road safety rules, in particular for cycling, roller skating, motorbike and scooter driving. This educational program is of great interest for junior audience, and during its existence KPO new Finance Director appointed some 100 Aksai students have KPO is pleased to announce the been trained in appointment of Andrea Sacchi to a position road safety. As of KPO Finance Director. noted by Cristiano Andrea has been with KPO for about a Gioacchini, the year as Finance Controller. Before coming Road Safety to Kazakhstan, Andrea held a position of Program was Planning and Control Manager at ENI, initiated by KPO and earlier managed the unit of Economic for a reason – Evaluation of Investment Projects in ENI safety of both Corporate. employees and At the beginning of his career, Andrea their families is one worked for Agip, nowadays Exploration of the top priorities & Production Division of ENI, and then for the Company. continued his career as Finance and Control Given the fact Manager in international branches of a few that children are major Italian companies, such as Alitalia, often at risk on the Torno Internazionale and Iveco (FIAT Group). roads, it is important to teach them from an early age to behave safely on the roads. Andrea worked in many countries including It should be noted that KPO has been actively promoting the road safety training program the UK, Angola, Thailand, Turkey, Spain and for schoolchildren on the Aksai Radio since 2007. Some of the training programs included Germany. such as ‘Traffic Light’, ‘In word and deed’, were also put on the air on the Aksai Radio. On this occasion, KPO General Director to Andrea and wished him all the best and According to Gaziz Khassanov, such projects will be continued in the future, for instance, Damiano Ratti, extended his cordial welcome good luck in his new assignment. the safety program is currently planned to run at schools in Aksai. 11 KPO attends Technology and R&D Roadmap Workshop in Astana

KPO representatives Zhardem Kussanov (Permits and Licenses Manager), Simon Coley (Senior Field Production Engineer), and Ato Aidoo (Senior Planning and Performance Engineer) have recently attended Technology and R&D Roadmap Workshop for upstream oil and gas in Kazakhstan which took place in Astana. The workshop was the third stage in a process that started in 2010. During 2010, in accordance with the proposal sounded at the Foreign Investment Council (FIC) meeting #22 and the order by the Prime Minister pursuant to the Protocol of the session paragraph 5.5.1.2 dated as of December 4th, 2009, № 01-8.2, a «Technology mapping exercise for the oil and gas sector of Kazakhstan» was initiated and has to date been led by Shell, with participation from other operating companies (both international and local), including KPO b.v. Government could take to stimulate the R&D process for the institutions and companies initiative mapping process completed by Based on the protocol issued by the and the development of the local industry visited in both cities. year end in 2012. The remaining targets Prime Minister in 2010, a challenge was In April 2011, the report from road mapping The June 2012 workshop was organised left for completion before the end of the year issued by the President of Kazakhstan, His initiative identified five (5) Technology Target in continuation of the process. The aim was include: Excellency Nursultan Nazarbayev, to the oil Areas (TTAs) and Technology Challenges as for participants to review the results of the • Review of the report resulting from the and gas industry with a vision to “To create an focus areas for development of the roadmap. previous stages of the roadmap for each TTA June 2012 workshop by the Kazakhstan effective environment for R&D development The main TTAs identified for Kazakhstan and to identify “quick wins” (opportunities); Government. This will help the Government through policies and procedures facilitating are: prioritise research collaboration opportunities to prioritise on the R&D development areas the collaboration between universities and • Reservoir Characterisation between Operators and R&D facilities and to steer capacity building in those areas industry; to facilitate local capacity building • Field Equipment Priorities for R&D focus for Oil & Gas in for future development. in the area of technology development for • Fluid Flow and Processing Kazakhstan over the next 10 years. The • A strategy workshop will be held to the RoK oil and gas sector.” • Wells and Field Management event which was coordinated by Shell Global firm the timeline for implementation of the With the vision, set by the President, • HSE Solutions International B.V. brought together roadmap. That is expected to be help in the mission to set up a R&D STRATEGY The roadmap team in order to achieve 146 participants representing government September 2012. MAPPING INITIATIVE to achieve it was the objectives performed a Research & agencies, oil companies, supply companies, It is important to note that the event went initiated with the support of representatives Development assessment on the current consultants, engineering contractors, very well and everyone was impressed by of the Kazakh Institute of Oil and Gas state of R&D in Kazakhstan. Operator universities, and other institutions of RoK. the amount and quality of contribution made (KING), KazMunaiGas (KMG) and the representatives, from various IOC’s as During the workshop Zhardem Kussanov by KPO staff. International oil companies (IOCs), to well as LOC’s, jointly assessed the current participated in TTA-1 on Reservoir On this occasion, Roadmap Project successfully accomplish the assigned tasks. capabilities of the identified/selected R&D Characterisation which addressed: Manager of Shell Projects & Technology, This mission aims to assist the government facilities in Kazakhstan across the five (5) • Seismic Data Acquisition and Frans van den Berg, wrote a letter of thanks of Kazakhstan in facilitating the technology Technology Target Areas (TTAs). They Processing addressed to KPO General Director Damiano prioritization process based on mid- to long- aimed to identify opportunities for increased • Reservoir Description (Geology, Rock Ratti and Operations Director Luca Vignati. term oil and gas industry needs; to provide Research collaboration between Operators & Fluid Interpretation) In particular, he said the following: guidance in establishing enabled framework and R&D facilities and to identify potential • Well Logging and In-Well Monitoring "On behalf of Shell, I would like to for collaboration between industry and the initiatives to build R&D capabilities in • Core and Data Analysis express our heartiest thanks for the support state. The main objectives of the roadmap Kazakhstan over the next 10 years. • Fluid Property Analysis and contributions made by the KPO staff can be summarised as follow: Technology Assessment forms a key part Simon Coley participated in TTA-2 on in the development of the Technology and To formulate an Upstream Oil & Gas of the Roadmap. The diagram below shows Field Equipment covering: R&D Roadmap for upstream oil and gas sector industry view on the required Capacity the stages for design of the roadmap: • Equipment and Materials for Sour in Kazakhstan. Your participants Zhardem Building considering: The process has involved a review Service Kussanov, Ato Aidoo and Simon Coley • Technology Challenges facing of existing roadmaps developed in other • Operating in Ice/Cold Climate made very valuable contributions in the Kazakhstan fields in the next 15 years and countries including Norway, Brazil, Australia • Management of Sulphur discussions in the three Work Groups they potential Solutions to meet these and others. The process has also involved And Ato Aidoo participated in TTA-4 on participated in." • Focus Areas for R&D in Kazakhstan visits to identified R&D institutions, centres, Wells & Field Management covering: "This has helped to reach the goals of the • Opportunities for the local industry to universities and specified local companies in • Drilling and Well Costs workshop, to obtain the industry view on the develop and provide the solutions major cities in Kazakhstan including Almaty, • Field Management: Optimise Recovery required technologies and R&D focus for the • Focus areas for education to develop a Aktau and Atyrau in March and April 2012, including IOR/EOR next 15 years and to identify opportunities workforce with the required skills after receipt and review of responses to For each TTA, a general goal was set to for the local industry." • Strategic Initiatives that will enable: questionnaires previously sent to them. achieve the roadmap objectives. Stepwise KPO management and the newspaper o Increased effectiveness of the R&D At these visits clarifications were sought (staircase) progression for capacity building "Karachaganak News" also congratulate and greater involvement with the Oil & Gas on relevant areas on the responses to the and development of the respective focus KPO team who have made a considerable Operators questionnaires. KPO was represented areas was discussed between participants contribution for the development of the o Development of the local industry to at the visits to Aktau and Atyrau, in April and timeline with milestones in the years Technology and R&D Roadmap and wish deliver the solutions 2012, by Simon Coley and Ato Aidoo, who 2015; 2020 and 2025 were set. them all the best and good luck with this • Suggested measures that Kazakhstan participated in the technical assessment The roadmap plan is to have the challenging project. KPO team has become an overall winner in the BG Energy Challenge 2012, the 7th Charity, KPO wins BG Energy Challenge 2012 in Kazakhstan Sports and Intellectual Contest. The BG Energy Challenge - Kazakhstan was held on 30-31 in the energy section to build their Litasco, Worley Parsons, Shell, August 2012 in Zerendy village, teams, integrate and raise funds Total, KEGOC, CPC, NCPOC, and territory of the ‘Kokshetau’ National for charity to local communities. others. Park. Organised annually, the This year over 150 companies took KPO was represented in the BG Challenge event is a great part in the event, such as Agip, contest in three teams. Apart from opportunity for companies engaged KMG, BG Kazakhstan, NCOC, the highest overall ranking, KPO team has won three awards, which are: - Best Mixed Team - Best Joint Venture - Best Entertaining Team During the contest, participants have been faced with both physical and intellectual challenges on water and earth requiring stamina, strategic thinking and team work. Winning in such a contest was not that easy as it seemed On this occasion, KPO General come from the teamwork and joint - the participants implemented Director Damiano Ratti met KPO efforts. The BG Challenge result the complex task based on real team in the main building of the shown by the KPO team is another processes of prospecting and company. During the meeting he excellent confirmation that team development of offshore oils congratulated all the participants work and collaboration always win. deposits, petroleum transportation of the contest and said: “I strongly I personally thank and congratulate and sales. believe that great achievements all the participants! Well done!”