URALSK, Western Kazakhstan Oblast, 3 July 2009 – The representatives of 60 enterprises from Western Kazakhstan region have attended a workshop hosted by Karachaganak Petroleum Operating B.V. (KPO) company.
The aim of the workshop was to increase the awareness of the Kazakh companies about the specifics of KPO’s tender process and procurement needs as well as to communicate the requirements that company places on its vendors with regards to compliance with health, safety and environment protection regulations during both tender process and contractual work.
KPO General Director Roger FOX said: “We believe that local companies and KPO share the same desire to grow and contribute to the sustainable development of the West Kazakhstan Oblast. Through these workshops, we aim at acquiring a better understanding of our needs and skills, which represents the key driver for enhanced business cooperation. ”.
In order to increase the role of local vendors in the development of the Karachaganak field and to provide them with necessary technical support and consultation, KPO has established a Vendor Development and Qualification office in Uralsk.
As is known, at the recent business forum in Uralsk “Partnership for development”, KPO publicly signed a range of contracts and memorandums with enterprises from the Western Kazakhstan region. A Memorandum of Understanding was also signed which established a Working Group consisting of representatives from the WKO Akimat, KazMunayGas, local businesses and KPO. The task of this group is to explore ways in which the parties can work together to further enhance local capacity and competition in the region.
KPO intends to conduct workshops for Kazakh vendors on various topics on a monthly basis with regard to the specifics of tender processes at KPO’s and procurement needs of various KPO departments. This will ensure that existing and potential Kazakh vendors will have an opportunity to directly meet with the representatives of the KPO commercial and technical departments and receive necessary information from them, including consultations on tenders conducted by KPO.
Some 2,400 Kazakh vendors are currently registered on the KPO’s supplier database. Since beginning of the FPSA in 1997, the local content level in all contracts assigned has exceeded $2.5 billion. 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
Notes to editors:
Karachaganak Petroleum Operating B.V. (KPO) is a joint venture between BG Group (32.5%), Eni (32.5%), Chevron (20%), and LUKOIL (15%).
KPO oversees the expansion and development of the Karachaganak field - one of the world’s largest oil and gas condensate fields - which is located in North West Kazakhstan and holds over 1.2 billion tonnes of oil and condensate and more than 1.35 trillion cubic metres of gas.
Today, Karachaganak is producing at record levels and is the largest gas producing field in Kazakhstan, accounting for some 45 per cent of the country’s total gas production and around 16 per cent of total liquids production. In 2008 the Venture produced 136.4 million barrels of oil equivalent.
Development of the field is bringing significant income to both the national and local economies and the project is providing long-term jobs to many Kazakh nationals.
During 2008, KPO achieved a level of Local Content of some $573 million or 56 per cent of the total contract value executed in 2008, which exceeded the agreed Local Content plan target of 43 per cent.
KPO actively promotes vendor development through a range of initiatives. The Venture assists local businesses in developing key staff through international qualifications in environment, quality, health & safety, finance, project management and technical standards. This programme enhances the capabilities of local companies which is a primary consideration when KPO formulates tender lists for the provision of goods and services. KPO always tries to match international contractors with Kazakh companies to encourage inward capital investment and skills and technology transfer.
