A training course took place in Atyrau for preparation of Kazakhstan suppliers to participation in purchases of oil and gas sector operators

Within frames of the program for support of local contractors and suppliers Tengizchevroil LLP and European Bank of Reconstruction and Development arranged a training «Preparation for participation in purchases of oil and gas sector». Maxim Baranov – expert in counseling of purchases and supply chain management of PWC office in Kazakhstan for more than 24 hours was sharing practical experience and theoretical knowledge. Functional specialization of Maxim is increase of efficiency in functions of purchasing and procurement, business transformation and development of purchasing strategies.

The expert explained the reasons for complications arising when holding purchases in oil and gas sector companies. First of all Maxim Baranov showed the nature of various requirements to suppliers. Thus, purchases of large oil and gas companies are used by state authorities as a tool for development of domestic business. The government in particular initiates requirements to development of personnel, to goods quality, to social responsibility, and oil and gas operators observe them.

Comparison of requirements to tender documentation in Kazakhstan and other countries showed that at the moment Kazakhstan contractors are not required to provide confirmation of certification and collection of identical documentation from all subcontracting organizations, whereas it is compulsory in other countries. Thus mineral resources exploiter through tracing the whole supply process reduces its supply problems. Moreover 28 types of purchase procedures and approaches are used in the European Union whereas only 4 of them are applied in our country.

Whereas the expert explained that unwillingness of some mineral resources users to involve domestic companies to development of technical specifications creates misunderstanding and damages customers as well as suppliers. Maxim Baranov is convinced that guaranteed 50% of Kazakhstan local content in purchases may inflict damage on domestic business, stop its development. Whereas category and purchase strategy with gradual reduction of guaranteed 50% for stimulation of business development and competition is a more stable model.

Training participants and speakers unanimously agreed that only a quality dialog between domestic business community, mineral resources exploiters and the state will allow to develop Kazakhstan local content in purchases of oil and gas industry.

Also during the training the participants could in the context of a practical drill take part in TCO test purchasing by applying Harvard case analysis method. Purchase department directors and representatives of domestic companies from Atyrau, Almaty, Shymkent, Karagandy and other cities of Kazakhstan participated in the training.