К. Efficiency Evaluation of PR Activities in Kazakhstan Oil and Gas Companies

Presently, this is a well-known fact that a company intending to become a recognized market player or keep an industry’s leadership status should work on the public relations development. A company’s positive reputation exceptionally contributes to pursuing its business objectives and to efficient performance of the organization in general. To achieve success, companies should decide on how to do it right: WHO is their target group and WHAT KIND of methods should be used to influence this target group [1].

If you have a look at the at the modern world, it is easy to notice its prominent dependence on oil, gas, other hydrocarbons and its constituents, and nowadays it is hard to imagine existence of the contemporary civilization without constantly rising consumption of the mentioned energy resources.

At present times Kazakhstan is rapidly turning into one of the biggest oil and gas producers and exporters in the world. Extractable proven reserves of the Republic of Kazakhstan are equal to 5 billion tons of oil and 3 trillion of cubic meters of natural gas, prospective and forecast resources are estimated to be 17 billion tons [2]. According to the data published in «Statistical Review of World Energy» prepared by the British company «ВР», by the end of 2012 Kazakhstan was number 12 country in terms of oil reserves, and number 21 in gas reserves [3]. For the period of January-October 2014 production of oil and gas-condensate in Kazakhstan amounted to 55,984 MMT, production of natural gas amounted to 35,177 BCM [4].

1. Oil and Gas Business of Kazakhstan and the Public. Due to development of market relations in our country, there were founded many large corporations, among them oil and gas corporations as well. To date there are around 10 big companies in the Kazakhstani oil and gas market, such as «NK KazMunayGas», «Tengizchevroil», «CNPC Aktobemunaygas», «Karachaganak Petroleum Operating BV», «KazRosGas» and others [5].

Oil corporations conduct their business on the vast territory of the country. In some regions oil and gas are produced, oil and gas pipelines are constructed, in other regions there are refinery factories and points of oil products sale. All this produces a negative effect on the environment, life conditions of the people living on those territories. It is evident that while performing their activities the oil companies have to deal either with their own staff members, business partners, or with governmental institutions, non-governmental organizations, labor unions and also with the community living in the area where the companies’ manufactures/offices are located. These relations are impossible to imagine without influencing each other. Proper usage of PR-methods may give companies the opportunity to establish understanding with the local population, strengthen their market positions, raise their competitive status, and secure their positive image.

The actions carried out through mass media aimed at harmonization of the relations between the habitats’ elements intend to have a meaningful impact on the public opinion for the sake of the corporation. Consequently, the companies’ PR represents such a communication sphere that helps the company to shape its image, gain the influence within the industry and maintain the positive attitude on the part of the publicity.

Also the funds allocated by Kazakhstani oil and gas companies for their PR-activities have increased significantly over recent years. Hopefully it occurs thanks to understanding of importance of PR. For instance, the companies included in list of the 10 Kazakhstan biggest oil and gas companies may allocate up to 25-30 million tenge for PR [7].

2. PR-department in Oil and Gas Companies. PR-departments, in one form or another, exist in all oil and gas companies, both large and small. Their structure may be different too: from Public Relations Department («NK KazMunayGas» JSC), Press Sectors with 3-4 managers («KazRosGas») to single specialists employed to deal with informational issues in small oil and gas companies.

The main function of PR-departments is to carry out the interconnection of the company with the public in order to implement its interests and plans on the basis of analysis of the public opinion about this company, controlling this opinion, and taking into account the social interests. On that platform PR-departments build up their further strategic and tactical activity.

It is evident that PR of big companies has already passed the stage when in PR-activities only advertising was sufficient. Today it is necessary to work using more contemporary technologies of PR.

3. Interaction with Mass Media. Mass communication media is the main instrument in the work of PR-divisions to establish and maintain informational connections of the company with various categories of society. The advantages of the print media among other media are rapid presentation of information, and large circulation. It is important that the all data in the informational materials transferred by mass media should be carefully checked and not to have any distortions and exaggerations, otherwise there may be more harm than usefulness.

Appearance of first corporate web-sites of Kazakhstani oil and gas companies demonstrated their incontestable advantage over other communication means - the opportunity to obtain various fisthand information almost about any company, easy establishment of business contacts, the ability to store big volumes of information through creation of archive databases, the search for new partners over the whole world.

Nowadays most big oil and gas companies have their own corporate sites in Kazakh, Russian and English languages.

4. PR and Image of Oil and Gas Companies. The success of the corporation’s business, its role in the society do not only depend on effective technologies and communications, but also on the way it is recognized by the public, its image. To work on the company’s positive image is one of the main goals of its PR-department. The company image is created by many components. These include industrial accomplishments, new projects, as well as foreign operations and the public relations. The more multidivisional a corporation is, the more difficult it is to develop and keep its corporate image.

Creation of image is impossible without lightening the company’s activities. At the same time, competent provision of information is the key and most difficult objective of companies’ PR-departments. Here it is appropriate to inform the public about the eligibilities, highlighting the upsides, as well as to blur over and rather withhold the weaknesses or downsides. We can often observe the situations when on the corporate website most advantageous activities of the company are accentuated, while less successful directions of business are blurred.

Oil and gas companies work on creation (maintenance) of their image on a regular basis, and not only by using past and current achievements, but also through informing the public about significant new projects. Public speeches of companies’ executive managers have a major impact on development of their companies’ image.

The information on the company’s industrial accomplishments in oil and gas production may negatively influence the image of another company. And participation in international projects (such as construction of transcontinental oil and gas pipelines, participation in competitions for obtaining licenses for exploration of oil and gas fields both in Kazakhstan and abroad, etc.) is an integral part of the company’s image and the most important direction in its PR-department activities. Moreover, the comments of business partners have a large impact on shaping the company’s image externally. They have a larger effect than their own comments and declarations.

It is out of the question that creation the corporation’s image is a constant well-organized work of PR, which shall be rewarded in a longterm perspective. The task of PR-department of the companies with established image is to maintain and correct this image. In addition, another task of PR-divisions is to inform the public about that very part of the company’s business activities which demonstrates its stability and prosperity. This, in its turn, ultimately helps to create the company’s positive image, which eventually results in financial profits.

In conclusion, I would like to mention, that oil companies together with gas companies and energy companies representing major budget revenue generating enterprises of Kazakhstan, possess a broad range of opportunities in both political and financial aspects. Therefore, the authorship of the substantial part of high-quality PR in the Kazakhstan business system belongs to oil and gas companies.

The main purpose in the work of corporations in terms of PR is the aspiration for the country’s population welfare growth, decrease of unemployment, rise of the culture level. Despite some extreme views on PR still existing in our society, it is necessary to point out that PR as a part of the information management system, plays a positive role for oil and gas industry enterprises.

References

1 Article «What is your PR worth» dated 28.01.2012, www.prclub.kz
2 Interview with U.Karabalin published in magazine «OIL&GAS of KZ» (dated 31.10.2013)
3 Article «Oil&Gas companies of Kazakhstan» http://www.neftegaz.kz/ analitik-articles/neftyanyie-kompanii-kazaxstana.html
4 Data from the website «NefteGaz.kz» dated 14.11.2013, article «For 10 months of 2014 Kazakhstan has decreased production of oil and gascondensate by 1,6%».
5 Data from the Wikipedia website «Oil industry of Kazakhstan»
6 Data of the rating agency «Expert RA Kazakhstan: dated 07.12.2013. http:// www.racxpcrt.kz/rankingtable/?table_foldcr=/cxpcrtl 00/2012/main
7 Source: Annual financial reports of companies dated 2013.
8 i.3 Article 12 of the Law of the Republic of Kazakhstan «On Taxes and Other Obligatory Payments to Budget» (Tax Code of RoK).

А. Елеуова

Руководитель: д.и.н., проф.

Л.С. Ахметова

Авторы: Дзялошинский И.М., Корконосенко С.Г., Альжанова А.Б., Рузин В.Д.