URALSK, 22 May, 2019 - Karachaganak Petroleum Operating B.V. (KPO) with the support of the West Kazakhstan oblast Akimat and the Authority held a Seminar -Meeting on the local content development within the framework of Memorandum of Understanding between  KPO, WKO Akimat, JSC SEC “Oral” and WKO machinery building manufacturers on implementation of the Road Map of the Sub-cluster “Machine Building for Oil and Gas Industry”.

KPO introduced to the participants  the outcomes of the joint work on execution of the Local Content Development Program. It was highlighted that in the last three years (2016-2018 period) the local content level has increased from 48% up to 60% and KPO facilitated in the Republic of Kazakhstan manufacturing of new 22 goods for value of  more than 22 bln.KZT 29 works and services of total value of  186 bln KZT, which previously were provided by international companies.

Also, KPO highlighted some important events taking place within the WKO machine building:

• ZKMK service center has received order for refurbishment of the General Electric made Frame 5 gas turbine;
• In 2018, ZKMK produced over 200 internal plates for the one of KPO separators;
• 4 major plants in the region (Uralsk Plant “Zenit”, ZKMK, “Hydropribor” and Uralsk Mechanical Plant) received the Trial Orders for the repair of valves;
• Aksai based manufacturers starting producing flanges, fastening materials and caustic solution tanks.

The Meeting’s participants also discussed the machine building development issues in the West Kazakhstan Oblast, and representatives of the WKO machine building plants noted the significant progress in promoting  local products for the Karachaganak Project.

During the Meeting, a number of long-term contracts have been signed for the manufacturing of transformers, filter elements, motor oils, and other goods in the Republic of Kazakhstan, which will enable the machine building companies to ensure increasing and mastering production of new goods in country. Also the previously awarded contracts to the local companies for manufacturing of the flanges, gaskets and fastening materials have been handed over during the meeting.

Also, during the Meeting several KPO employees have been awarded with Letters of Gratitude of West Kazakhstan Oblast Akim.

Edwin Blom, KPO General Director, confirmed  KPO’s and its Partners’ intentions to continue implementation of the Road Map of the Sub-cluster Machine Building for Oil and Gas Industry. Edwin Blom added that due to development of Kazakhstani machine building companies KPO receives good quality goods at competitive price thereby attaining savings. Also, he expressed confidence that further close cooperation will allow local machinery building industry to develop new manufacturing technologies and reach a higher level of modernization, digitalization and localization of production.

On behalf of KPO, Mr. Blom thanked the WKO Akimat, Authority and local machine building manufacturers for active cooperation and collaboration in the area of machine building.

KPO is one of the first companies in Kazakhstan, which has successfully implemented its local content programme. Since signing the FPSA in 1997, the total value of goods, works and services supplied by local companies has exceeded $7 billion.

For more information please contact:

Sergei Pushkarev: <link>PushkS@kpo.kz 

Gulnara Sharibayeva: <link>ShariG@kpo.kz 

KPO Corporate Affairs Department