CEO of «Samruk-Kazyna» JSC (hereinafter - the Fund) Umirzak Shukeyev met with the staff of Atyrau oil refinery (hereinafter - AOR) to explain the Address of President of Kazakhstan Nursultan Nazarbayev «The third modernization of Kazakhstan: global competitiveness.»

The main idea of the Address is to modernize key sectors of Kazakhstan's economy through innovation, digital technologies and overall technological upgrading. These goals are highlighted in the transformation program realized by the Fund «Samruk-Kazyna».

As a part of the transformation program of the Fund and in order to optimize operating costs, create culture of continuous improvement and employee involvement in these processes, in 2016 it was decided to implement Lean 6 Sigma program in «KMG-processing and marketing»  JSC group of companies (hereinafter - KMG PM). Under this program, in 2016 the employees of refinery, gas station and the corporate center have been trained, and as the result 23 projects (without major investments) have been approved. Preliminary annual economic impact from their implementation within the KMG PM group of companies in 2017 will be approximately KZT 350 million. Atyrau oil refinery plant (hereinafter - AOR) is implementing five projects with preliminary benefits of KZT 77 million in 2017.

-Over the past two years of work on the transformation, we have designed new operating models and simplified organizational structure of the six national companies, CEO of the Fund Umirzak Shukeyev told during the meeting with the staff of Atyrau refinery, which was held on February 22 in Atyrau. - The changes have affected the activities of our portfolio companies: «KazMunaiGas», «Kazakhstan Temir Zholy», «Kazatomprom», «Kazpost», «Samruk-Energy” and “KEGOC”. We have streamlined the corporate business processes of our companies, such as accounting and tax accounting, treasury and information technology management, and brought them into line with the standards. During the past period, we have reviewed about 30 thousand processes, the number of management levels of the national companies has been reduced from the previous nine levels up to four or five. This allowed us to get rid of unnecessary ballast in the form of duplication, unnecessary reporting and outdated regulations. The transformation program is beginning to bring first economic benefits at the enterprises. For example, the business process re-engineering has allowed to increase productivity by 50% at the AOR.

In addition, the AOR has introduced manufacturing execution system (MES). Modern automated system allows to control the relevant production processes more efficiently. It helps to minimize the influence of the human factor in the process of measuring the amount of petroleum products and the further data processing on the movement of material flows. This improves quality and transparency of operational information, and as the result, the effectiveness of managerial decision-making in the workplace.

During the visit, Mr Shukeyev has familiarized with the course of the modernization of the Atyrau Oil Refinery. To date, the second phase has been fully completed, within which the complex for the production of aromatic hydrocarbons has been built. It allows to produce high-octane components of gasoline, as well as benzene and paraxylene in a volume of 133 000 tons and 496 000 ton respectively, each year.

As a part of the third phase of modernization of Atyrau Oil Refinery, construction of deep refining complex is under the final stage. When completed it will significantly increase the production of motor fuels thatmeet environmental class standards of K4 and K5 in accordance with the requirements of technical regulations of the Customs Union. Mechanical completion and commissioning is scheduled for the 2nd quarter of 2017.

In addition to meetings with the staff of the AOR, the Head of the Fund met with employees of subsidiaries of National Company «KazMunayGas» JSC: west branch of «KazTransOil» JSC and Atyrau production branch «KazTransGas - Aimak». Among the topics discussed during the meeting was a plan for the use of modern technologies in the subsidiaries of NC KMG.