LLP Olimpgaz is dedicated to upholding a high standard of corporate governance and acknowledges that effective governance is critical to its success. The Board of Directors of LLP Olimpgaz believes that a sound corporate governance policy, comprising an open set of procedures and practices, is a crucial component of the company’s success in the medium and long term. The implementation of these policies allows the Board to make important decisions collectively and allows the business to operate in a way that considers all stakeholders, including suppliers, employees, and business partners.

In the current stage of the company’s development, the Board feels it is appropriate to adhere to the Corporate Governance Code prepared by the Quoted Companies Alliance, which is intended for growing companies and provides an effective and proportionate governance framework that is reflective of our company’s culture and values. The Board of Directors is ultimately responsible for setting the company’s strategic goals, defining the business plan and strategy, and managing the financial and operational resources of the business.

By ensuring that everyone is aware of how roles, responsibilities, rights, and accountability are distributed, effective corporate governance makes it possible for a company to operate efficiently. The Kazakhstan Code of Practice for corporate governance (the “Code of Practice”) is something that our Board of Directors actively upholds, and they will always make sure Korolev Oil Field abides by it or provide an explanation for any deviations. The board regularly evaluates and discusses the subject of corporate governance.

Our objectives and principles

We believe that good corporate governance is more than just a technical exercise—it is instead a fundamental element in the practical work of the company’s governing bodies, and it defines the criteria on which the trust of the company’s shareholders is based. In addition, the work of the Board of Directors is based on the existence of a clearly-defined division of roles and responsibilities between the shareholders, the Board of Directors and the management in LLP Olimpgaz.

Our purpose is turning natural resources into energy for people and progress for society. We believe that the best way to achieve this goal is through value-based performance culture, stringent ethical requirements and a code of conduct that promotes personal integrity and respect for the environment. Our corporate governance is therefore based on our corporate values and ethical guidelines.

The Capital Value Process

An systematic approach to project development, the Capital Value Process begins with the preliminary assessment of a new business opportunity and concludes with the formation of profitable operations. The project’s phases are separated as it progresses using decision gates (DG). Each DG decides whether to proceed with the project or not. The review process for each DG ensures that decision-makers understand their ultimate responsibilities, that the risk exposure is appropriate, and that the decision-making meets our criteria.