Astana has held a joint forum of suppliers titled as “Production of complex equipment and spare parts” which was held by Kazakhstan association of oil and gas and energy organizations KAZENERGY, KazMunaiGas and three large scale oil and gas operators operating in Kazakhstan which included Karachaganak Petroleum Operating B.V. North Caspian Operating Company B.V. (NCOC) and Tengizchevroil. Over 50 local engineering companies and over 40 foreign producers as well as Minster of Oil and Gas, Ministry of Industry and New Technology, The Union of Mechanical Engineers of Kazakhstan, akimats of West Kazakhstan, Mangistau, and Atyrau oblast suggested their ways of development of the national goods production market and services in the field of complex equipment and spare parts required for oil and gas industry. The forum hosted the projects from Karachaganak, North-Caspian and Tengiz oil fields. The organizers familiarized the participants with the needs on complex equipment and spare parts within the short and long term prospects.
Serik Baitanayev
Essentially, Karachaganak is one of the pioneers which introduced state development program on Kazakhstani suppliers. An undisputable success in this aspect is KPO’s wide database which has registered over 3,000 local enterprises. Thus, during the last year KPO closed contracts a number of contracts on works, goods and services for total amount of $527 million with 300 local enterprises.
Mr. Giuseppe Pasi, general director of KPO said, “We wholeheartedly support the initiatives of the government aimed at maximum involvement of Kazakhstani companies in implementation of large investment projects. In order to support national suppliers KPO is fulfilling a number of initiatives which aim at compliance with the requirements of international standards in the oil and gas industry, especially in the field of labor and environment safety and occupational safety.”
In the few last years, the government considers the use of local goods and services and potential development as a strategic priority. This issue also matters from the point of effective operation of companies and multiplication of advantages for regional and republican economy.
Here what the head of the department on local content, Kairat Kapashov said, “KPO is fulfilling a number of projects on location of the production of spare parts and equipment necessary for Karachaganak deposit. Such projects give incentive to the joint cooperation of western and local producers and provide favorable conditions for development of Kazakhstani enterprises and contribute to the technology transfer into Kazakhstan industry.”
The implementation of oil and gas projects allows local economy to develop creating the environment in which national companies can compete due to using the advanced experience amassed by world business sector and due to use of the technology which can also be transferred beyond oil and gas sector. This idea is further developed by Elmira Kenzhegulova who says, “Kazakhstani enterprises should also be interested in the cooperation in order to gain compliance in the standard requirements, production safety, quality and price. In the contracts we stipulate to attract local companies to render sub-contractor services, to share experience and technology and possibly contribute to the professional development of the local specialists.”
For example, LLP Topan which at the beginning was supplying small amount of chemical reagents and later KPO had to increase the use of the material and the company Topan has really made a growth. Such partnership proves how successful a joint cooperation can be within sub-contract agreement. Another company LLP Avenkom has shown about 67% of orders from KPO following the results of the previous year. Due to KPO hundreds of local supply companies have been able to close contracts with the companies participating in the exploration of Kashagan, Tengiz and other oil and gas projects. The share of Kazakhstan’s participation in the signed contracts has increased to $3.5 billion over 10 years of operation in this direction.
