Local Content Development Programme

In line with the state initiatives for the mechanical engineering development, industrialization and digitization programmes, KPO develops and implements a two-year Local Content Development Programme for the Karachaganak project in order to achieve the goals set in the KPO Local Content Policy.

Since signing the FPSA in 1997 by the end of 2019, the cumulative Local Content share in goods, works and services had exceeded US$ 7.7 bln.

In 2019, KPO initiated 32 so-called «Qazaqstani tenders» to be held exclusively among local companies for a total value of US$ 204 mln. As a result, KPO awarded 57 contracts to the local companies worth US$ 77.7 mln. Such option as a «Qazaqstani tender» indicates local capability development and competitiveness in the local market.

KPO intentionally contributes to the sustainable development of the West Qazaqstan Oblast manufacturers. Within the framework of the Memorandum of Understanding on cooperation for the development of mechanical engineering in oil and gas industry, KPO closely interacts with enterprises participating in the «WQO Mechanical Engineering for Oil & Gas Industry» sub-cluster. During the 2019, 26 invitations to participate in the market research were issued to six mechanical engineering manufacturers of WQO, as well as invitations to 32 tenders for deliveries of goods, works and services.

Under the current contracts, in 2019 KPO payed US$ 410 mln to WQO enterprises for deliveries of goods, works and services, and Local Content share reached US$ 291.6 mln or 71.1%, which includes:

  • Contract with Zenittechstroy LLP for provision of the specialized operation services of machine processing was awarded based on results of a tender among the WQO mechanical engineering manufacturers;
  • Long-term contract with Ural Transformer Plant LLP for production and supply of transformers;
  • Contract with Aksaigasservice JSC for fabrication of six buffer vessels for caustic and water awarded based on results of the «Qazaqstani tender», which was held among mechanical engineering enterprises in Western Qazaqstan.