75% of oilfield services fall to the share of three major projects in Kazakhstan

On March 27, the Italian city of Ravenna hosted the world’s largest offshore technology exhibition and conference. The conference included the Kazakh-Italian business meeting on strategic cooperation “Internationalization and local content 2.0”. The meeting was organized in collaboration with the General Confederation of Italian Industry (Confindustria), Assomineraria Association, ENI, KazService Association, the Kazakhstan National Chamber of Entrepreneurs Atameken, as well as KazEnergy Association.

At this meeting, the PR Manager of the Oil and Gas Industry Strategic Partnerships Development Council (Petrocouncil), Raushan Naizabayeva, told the representatives of Italian companies about the benefits of doing business in the oil and gas industry of Kazakhstan and preferences granted to foreign investors. She also reported on the state’s plans for the development of local content.

In particular, according to the Aktau Declaration on Joint Actions, operators of oil and gas projects of Kazakhstan have identified and agreed on the TOP 10 product codes for the development and localization of production.

“For business this list is a kind of mini-road map for future projects,” said Raushan Naizabayeva.

Thus, the top ten products for the development of domestic content include pipe products, flanges and fittings, valves, electrical equipment, high-pressure vessels and heat exchangers. And in the area of oilfield services, the Kazakh side stands for the localization of works on design, maintenance, support services for well equipment, waste management.

In 2012-2017, the annual share of local content in the procurement of goods, works and services in the oil and gas projects did not fall below 41% and reached 49%.

It is worth reminding that the Oil and Gas Industry Strategic Partnerships Development Council is a consultative and advisory cooperation of legal entities established under the auspices of the National Chamber of Entrepreneurs Atameken and the KAZENERGY Association.

The Council coordinates all unions, councils and other alliances affiliated with the National Chamber of Entrepreneurs Atameken, KazEnergy, the Ministry of Energy, of Investment and Development, PSA and other organizations.

The Association represents and promotes the interests of oil service companies and oil and gas market operators for the fair and efficient development of the oil and gas market.

According to the Association of oil service companies (KazService), today more than 1,000 companies work in the oil service industry of the republic, which employs more than 180,000 people.

14 Kazakhstan oil service companies are among the 100 largest companies in Kazakhstan, according to the National Business & McKinsey rating.

25 companies included in the list of the world’s 200 leading contractors carry out their activities in the republic.

Customers of 75% of oilfield services are Tengizchevroil LLP (TCO), Karachaganak Petroleum Operating B. V. (KPO) and North Caspian Operating Company N. V. (NCOC).