- Local Content
- Long-term initiatives
Under the Agreement signed in November 2020 between the Ministry of Industry and Infrastructure Development of the RoQ, Ministry of Energy of the RoQ, PSA LLC, Association of Qazaqstan Machinery Industry and three major Operators: KPO, Tengizchevroil LLP and North Caspian Operating Company, in 2021 International Centre for Development of Oil and Gas Machine Building (IMBC) was established and began its work. The IMBC conducts its activities on behalf of the three operators, closely interacting with relevant ministries, the Authority and petroleum associations involved in the development of the national oil and gas machinery building.
The main objective of the IMBC is to increase local content in procurement by analysing the demand from the three Operators (TCO, NCOC and KPO) and studying the local market of existing manufacturers that could supply these goods that meet the requirements of the Operators. Also, the function of the Centre is to assist in expanding the production capacity of local manufacturers and developing their potential, where necessary. In addition, close cooperation with foreign companies is expected in the localization of their production in the Republic of Qazaqstan, as well as in attracting investments by facilitating the creation of joint ventures and the transfer of technologies and know-how.
As part of the Memorandum of Understanding on localization signed in 2020, KPO continued activities on the development of Road maps with the Original Equipment manufacturers. The categories of goods and spare parts for potential localization, timing of implementation and the estimated production scope in RoK were defined. By the end of 2021, five Road maps were signed with such companies as Baker Hughes, Honeywell, nVent and Stewart Buchanan and John Crane, and two contracts for localization were awarded.