We believe that the cornerstone of local content development is encouraging supplier competitiveness. While this approach is driven by our need to improve logistics, secure quality of goods and services, and reduce costs, it also has important socio-economic dimensions. The benefits of a diversified and competitive supplier base extend well beyond the reach of Karachaganak and deliver long term benefits to the local and regional economies.
This approach is also aligned with the Republic of Kazakhstan’s government initiative to develop the capability of national industry and to increase the involvement of local companies in oil and gas projects.
KPO aims to develop the competencies and capabilities of local companies to meet international standards and to establish long term relationships with the local business community during the lifecycle of our petroleum operations.
Karachaganak’s vendor development initiative, in place since 2001, has resulted in the registration of over 3,000 Kazakhstani vendors. During 2011, contracts for over USD 387 million have been concluded with 341 Kazakhstan companies for the provision of goods, work and services.
In 2011 the Kazakh Content in Karachaganak project has made up to 38 per cent (US$ 268 M).
KPO 2010-2011 Local Content data
Data as per 2010 methodology
Value of Kazakh content for goods,
services and works as paid per year (US$ million)
As a percentage of total paid invoices
Note: Since 2010 Kazakh content percentage has been calculated according to the Single methodology in purchasing of goods, works and services when actual expended contracts figures are taken as the basic data for calculation. Calculation in the previous years was based on awarded contracts’ values.