Water Resources Management
Management approach
GRI 3-3, GRI 303-1, GRI 303-2
In the face of climate change, water resources are becoming increasingly vulnerable, significantly impacting ecosystems, socioeconomic development, and public health. KMG recognizes its responsibility for the rational use of water resources and is implementing systemic measures aimed at reducing the negative impact of its production activities on aquatic ecosystems.
Strategic approach to water resources management
KMG’s approach to water resource management is based on international principles of sustainable development and aligns with UN Sustainable Development Goal 6, “Clean Water and Sanitation”. The company strives to ensure rational and responsible water use and minimize water pollution.
In accordance with its Environmental Policy, KMG and its subsidiaries and affiliates consider water resource protection and the prevention of negative impacts on the aquatic environment among their key environmental priorities. The company consistently improves its water management processes, including implementing water conservation projects, expanding water recycling systems, and managing water shortage risks.
To systematize activities in this area, KMG has developed a 10-year Water Resources Management Program. The program aims to prevent water shortages, protect aquatic ecosystems, and reduce environmental impacts, as well as develop an effective water management system within the Company.
The program covers KMG’s key operating subsidiaries and affiliates and includes an assessment of investment projects from a water use perspective. As part of its implementation, the Company’s water footprint was analyzed, key water risks were identified, and recommendations for mitigating them were developed.
Protection of water resources and rational water use
KMG is focused on reducing freshwater consumption and increasing the share of recycling and reuse of treated wastewater. To unify approaches to water resource management, a Corporate Water Resources Management Standard based on eight water principles was approved in 2018. This document regulates the activities of subsidiaries and affiliates in water use and promotes increased management and staff engagement in water conservation.
The Corporate Standard is planned to be updated in 2026, taking into account the new goals and priorities of the Water Resources Management Program.
KMG water principles
Water is the basis of life, the source of all things existing. The stability and security of the state is determined by the abundance of clean fresh water, and the success and sustainability of business – by responsible, caring attitude to it. These principles express the Company’s commitment and demonstrate its intention to conserve water resources for people, nature and well-being of current and future generations of our country.
We constantly use water – from daily needs to the extraction and processing of oil. And at the same time, within the daily routine, we must not forget how much water is priceless. Every employee of the Company can and should contribute to its preservation.
- Unconditionally accept and understand the value of water resources
- Comply with legal requirements and international best practices
- Consider freshwater conservation issues when making management decisions
- Track the initial sources of water intake
- Strive not to use drinking water for industrial purposes
- 100% instrument metering of water intake and discharge
- Implement water circulation and water-saving technologies
- Continuously improve water management
KMG operates in accordance with international standards and the requirements of environmental and water legislation of the Republic of Kazakhstan. The Company has established and implemented processes for developing standards for permissible pollutant discharges, calculating impact indicators, and obtaining environmental permits, including discharge and water use permits.
Monitoring and evaluation of water use
KMG ensures transparency of environmental activities by providing access to environmental information to shareholders, government agencies and the public.
Since 2020, the Company has been calculating its water footprint and annually disclosing water use data on the CDP platform as part of the Water Security Questionnaire. Based on the 2024 reporting, published in 2025, KMG’s water management system received a rating of “C”, corresponding to the Awareness Level. This level reflects the Company’s processes for disclosing information and assessing water risks and forms the basis for further development and improvement of the maturity of its water management system.
KMG continues to implement measures to develop water-saving technologies and optimize the use of water resources, considering these areas as one of the key principles of sustainable development.
Environmental and social projects in the field of water use
KMG and its subsidiaries and affiliates are implementing a range of environmental and social projects aimed at improving water use efficiency and reducing impacts on aquatic ecosystems. Key areas of focus include modernizing wastewater treatment facilities, developing water supply infrastructure in the regions where they operate, and implementing innovative technologies, including water desalination solutions.
The “Tazalyk” project: modernization of treatment facilities of the Atyrau Oil Refinery LLP
One of the most significant environmental projects is the “Tazalyk” project, implemented by Atyrau Oil Refinery LLP. The project aims to comprehensively modernize the wastewater treatment system, including the reconstruction of mechanical and biological treatment facilities, evaporation fields, and the construction of a wastewater tertiary treatment unit.
The implementation of the project provides the following environmental effects:
- improving the quality of wastewater treatment;
- elimination of harmful fumes from open tanks;
- reducing the negative impact on the environment associated with the operation of evaporation fields.
The project increased the performance of mechanical wastewater treatment plants. Key achievements include:
- commissioning of two stages of reconstruction of mechanical treatment facilities (stage I – 2023, stage II – May 2024);
- increase in productivity to 1,000 m³ per hour and growth in the volume of oil sludge processing to 12 thousand m³ per month;
- the elimination of open pools, which made it possible to significantly reduce the evaporation of hydrocarbons.
Concurrently, measures are being implemented to reclaim evaporation fields, including drainage of areas, removal of vegetation, deep soil cultivation using biopreparations, and staged reclamation.
Development of water infrastructure in the regions of presence
KMG prioritizes the development of water infrastructure in the regions where it operates, viewing the provision of high-quality water to the population as an important element of social responsibility and sustainable development. Two key infrastructure projects are being implemented in this area: the reconstruction of the Astrakhan-Mangyshlak main water pipeline and the construction of a desalination plant in Kenderli.
Reconstruction of the Astrakhan-Mangyshlak main water pipeline has been completed. The project aims to increase its capacity from 110,000 m³/day to 170,000 m³/day, ensuring a stable water supply for residents, agricultural facilities, industry, and oil and gas production enterprises in the Atyrau and Mangystau regions. The pipeline is the only centralized water supply source for several districts in the Atyrau region, as well as for the city of Zhanaozen and certain districts in the Mangystau region. Given the annual growth in water consumption by the population of 4-5%, the project’s implementation plays a key role in strengthening the region’s water security.
In 2025, KMG completed construction of the Kenderli seawater desalination plant, located near the city of Zhanaozen, with a design capacity of up to 50,000 cubic meters of drinking water per day. The project aims to ensure a sustainable water supply for the region’s population, reduce the load on the Astrakhan-Mangyshlak main water pipeline, and improve the reliability of the Mangystau Region’s infrastructure. The project created 91 permanent jobs, and up to 650 people were employed during construction.
Innovative water purification and desalination technologies
KMG and its subsidiaries and affiliates are implementing innovative solutions in water treatment and desalination aimed at reducing freshwater consumption and increasing water efficiency.
Karazhanbasmunai JSC has completed a project to construct a desalination plant for produced water at the Karazhanbas field in the Mangystau region. Once fully operational, the plant will process up to 42,500 m³ of produced water per day and produce up to 17,000 m³ of desalinated water per day, thereby reducing freshwater withdrawals.
Results already achieved from the project implementation:
- in 2023, the volume of water intake was reduced by 2.6 million m³;
- in 2024 – by 4.07 million m³ compared to 6.3 million m³ in 2022,
- in 2025 – by 4.41 million m³ compared to 6.3 million m³ in 2022.
Water purification and improving working conditions for employees
KazTransOil JSC has completed a project to install mobile water treatment stations at the Kalamkas Main Gas Oil Pumping Station and the Karazhanbas Oil Product Pumping Station. The project aims to provide workers with high-quality drinking water, improve working conditions, and enhance the social and environmental sustainability of production facilities.
The implementation of modern treatment plants has improved the Volga water to drinking quality in accordance with the sanitary requirements of the Republic of Kazakhstan. This has reduced the cost of centralized drinking water supplies and improved the environmental safety and sustainability of the facilities.
Water footprint
Water intake
GRI 303-3
In 2025, the total water abstraction of KMG amounted to 84.2 million m³. The main sources of water supply were surface water, accounting for 34.5 million m³, groundwater sources at 26.1 million m³, seawater at 15.4 million m³, as well as municipal water supply systems at 7.9 million m³ and wastewater from other enterprises at 0.1 million m³. It should be noted that the total water abstraction volume is presented excluding formation water. More detailed information on water abstraction volumes including formation water is provided in Appendix E.
Water intake structure by sources for 2025, %
0%
18%
10%
31%
41%
- Surface water sources
- Groundwater sources
- Municipal water supply systems
- Sea water
- Wastewater from other enterprises
Volume of water withdrawn36, thousand m³
Structure of water intake by source in 2025, thousand m³
Water intake by KMG group of companies by source, 84,224 thousand m³
34,565
26,118
7,957
15,473
111
34,774
24,796
9,488
13,924
92
35,402
21,023
10,629
13,289
95
- Surface water sources
- Groundwater sources
- Municipal water supply systems
- Sea water
- Wastewater from other enterprises
Wastewater discharge and reuse According to data from the World Resources Institute (WRI), the Republic of Kazakhstan is classified as a region with a critical level of water scarcity, with a high level of water stress projected to persist over the next 15–20 years.
To assess potential risks, KMG conducts an analysis of water use at six subsidiaries operating in regions with elevated water stress levels, in accordance with the WRI Aqueduct methodology, including the basins of the Caspian Sea, the Syrdarya River, and the Ural River. In 2025, the total water abstraction in these regions amounted to 20.118 million m³.
To mitigate risks associated with water resource scarcity, KMG is implementing a set of measures aimed at reducing freshwater consumption, expanding closed-loop water supply systems, and strengthening water use monitoring. At the same time, the Company recognizes that access to water resources is a critically important factor for ensuring the sustainability of production activities.
36. Total volume of water withdrawn excluding formation water
Wastewater discharge and reuse
GRI 303-4
In 2025, the total volume of wastewater discharged37 across the KMG Group amounted to 10.2 million m³. Treated wastewater was directed to specialized facilities, including evaporation ponds, storage ponds, filtration fields, and reinjection facilities for disposal purposes. No direct discharge of wastewater into surface water bodies or onto land was carried out.
Enterprises that do not have their own storage or treatment facilities transfer wastewater for treatment to specialized external organizations. In 2025, the volume of wastewater transferred for external treatment amounted to 0.8 million m³, with all transferred wastewater characterized by a mineralization level exceeding 1,000 mg/l.
The total water abstraction volume also includes the water supplied by a subsidiary providing fresh technical water to consumers in the Atyrau and Mangystau regions, which amounted to 27.999 million m³ in 2025.
Of this volume, 21.995 million m³ was not used by the KMG Group for its own domestic or industrial needs and was transferred to other parties for use.
As a result, the total volume of wastewater disposal and water transferred to third parties without use by the KMG Group amounted to 32.205 million m³ in 2025. It should be noted that the total wastewater disposal volume is presented excluding formation water. More detailed information on wastewater disposal volumes including formation water is provided in Appendix E.
VOLUME OF WATER DISCHARGES, THOUSAND M³
In 2025, the volume of wastewater discharged by KMG enterprises located in water‑scarce regions amounted to 3.05 million m³, of which 0.029 million m³ was transferred for treatment to specialized external organizations.
KMG considers wastewater not only as waste, but also as a potential resource for further use. Wastewater treatment facilities at the Company’s enterprises are equipped with modern technologies for the removal of oil products and suspended solids. In particular, at oil refineries wastewater undergoes multi‑stage treatment, including mechanical and physico‑chemical treatment (in sand traps, oil separators, radial clarifiers and flotation units), followed by biological treatment.
One of the priority areas of KMG’s water policy is the expansion of the reuse of treated wastewater. Treated water is used in technological processes, for irrigation of green areas, dust suppression at construction sites and roads, vehicle washing, as well as for replenishing fire‑fighting systems.
In 2025, the volume of reused treated wastewater amounted to 9.7 million m³. A significant portion of this volume was used at oil refineries, totaling 5.2 million m³, which corresponds to approximately 38% of the total water abstraction of these enterprises.
In addition, during the reporting period, 528.02 million m³ of water circulated within the closed-loop water supply systems of KMG’s oil refineries, demonstrating the high efficiency of closed water cycles and a reduced need for freshwater abstraction.
VOLUME OF CIRCULATING (RECIRCULATED) WATER, THOUSAND M³
VOLUME OF REUSED (TREATED) WATER, THOUSAND M³
37. Volume of water discharges excluding formation water
Water Consumption
GRI 303-5
In 2025, KMG’s total consumptive water use amounted to 56.397 million m³. In 2025, the approach to calculating water consumption was refined to exclude volumes of water supplied to third parties by a subsidiary acting as a water supplier in the Atyrau and Mangystau regions.
More detailed information on water consumption including formation water is provided in Appendix E.
TABLE 24. TOTAL WATER CONSUMPTION EXCLUDING FORMATION WATER
| 2023 | 2024 | 2025 | |
|---|---|---|---|
| Water consumption, million m³ | 80.437 | 83.072 | 56.397 |
Management of associated formation water in oil production
During oil production, significant volumes of associated formation water are generated and brought to the surface together with oil as part of a water-oil emulsion. At production facilities, the emulsion undergoes gravitational separation, after which the treated water is reinjected into the reservoir to maintain reservoir pressure.
In 2025, the total volume of associated formation water produced across the KMG Group amounted to 147.4 million m³, with 97% (143 million m³) of this volume reinjected into the reservoir. The achieved reinjection rate demonstrates the effectiveness of the associated formation water management system and enables a significant reduction in impacts on surface and groundwater resources.
VOLUME OF ASSOCIATED FORMATION WATER PRODUCED, THOUSAND M³
Share of associated formation water reinjected into the reservoir, %
Environmental monitoring and protection of water bodies
KMG’s production activities have the greatest environmental impact on the water bodies of the western region of the Republic of Kazakhstan, including the Ural and Kigach rivers, as well as the unique Kokzhide Sands ecosystem. These areas have high environmental, economic, and cultural significance.
To prevent adverse impacts on sensitive ecosystems, KMG implements a comprehensive environmental monitoring system that includes regular observation of environmental conditions and monitoring of water resource quality. The Company’s activities in this area are carried out in accordance with the environmental legislation of the Republic of Kazakhstan and international principles of sustainable water use.
