Economic environment overview
Kazakhstan is a huge and rapidly developing state. The area of the country exceeds 2.7 million km², and the population is 18 million people. Oil and gas areas occupy more than 60 % of the country’s territory. There are 172 oil fields in Kazakhstan, the oil reserves of which amount to about 1.8 % of the world’s proven reserves. More than 90 % of Kazakh oil reserves are accumulated at 15 largest oil fields.

The main macroeconomic factors that affect the Company’s financial position include: the behavior of oil prices, inflation rates, exchange rate fluctuations, in particular, KZT/USD exchange rate.

Innovation
The New Technique and Technology Department (NTTD) was established in August 2015 on the basis of the previously existing new technique and technology division of the oil and gas production department. This Department first tests and then approves the introduction of new types of machinery and oil and gas production technologies implemented for the first time in Embamunaygas JSC, which have high technical and economic characteristics and are well proven in operation in conditions similar to those existing at the Company’s fields, whether they are the results of applied developments of research organizations, legal entities and individuals, serial types of machinery and equipment or the introduction of innovation technologies..