Tengizchevroil pays great attention to the development of Kazakhstani content in the oil and gas
industry. One of the directions for promoting domestic business is the Joint Initiative of the European
Bank for Reconstruction and Development (EBRD) and Tengizchevroil (TCO) to support and strengthen
the potential of local enterprises.

WHAT IS A JOINT INITIATIVE AND HOW DOES IT WORK?

Since 2015, TCO has been funding this area. The program involves companies working in large projects
implemented by large operators. There are high requirements for contractors in the field of safety,
environmental compliance, quality management of products and services. Therefore, the EBRD and TCO
Program aims at supporting of local companies, so that they could meet international standards.

As part of the program, companies get consultation. In addition, the EBRD has its own branch in Atyrau
Oblast, since about 20% of projects are located in Atyrau and West Kazakhstan Oblasts. The bank
provides systematic and individual approach, as well as controls the entire consultation project. At the
same time, clients are provided with a reimbursement of costs for the services of an expert in the
amount of 50% out of the cost. You can choose from an expanded database of Kazakh and foreign
consultants.

WHAT DO COMPANIES GET FROM PARTICIPATION IN THE PROGRAM?

Kazakhstani experts will help companies solve their problems in the framework of short-term projects
(3-6 months). International experts consult larger companies. Almost half of company-participants of
the Program are implementing projects for introduction of international quality standards such as ISO,
ASME, OHSAS. These companies operate in the oil and gas industry. They represent sectors such as
construction and engineering, electronics and IT, machine building, metal industry, chemical companies.

The program includes training for company managers and employees on a regular basis and on various
topics. One of the main areas is to increase the capacity of local businesses to participate in large
tenders. In addition, in 2020, courses were held on waste management, gender inclusiveness in the
industry, finance, inventory management, HR. Only in 2020, in total, more than 200 people have
completed the training.

Participation in the Program helped 80% of enterprises to increase their turnover, and 60% of
enterprises were able to increase the number of their employees. The program helped create 170 new
jobs, and the number of women was increased by almost 50%. And more than 10% of enterprises have
increased their exports, and almost 80% have increased their productivity.

From July 12 to 16, an online training on the topic “Training of internal auditors of integrated
management systems” was held to support local suppliers. The main goal of the course was to
familiarize the participants with the philosophy of quality management, ecology, occupational health
and safety in accordance with the standards ISO 9001: 2015, ISO 14001: 2015 and ISO 45001: 2018.
The training was attended by 25 people in total. Most of them were representatives of Atyrau city
companies. 8 participants of the training have already received certification by having successfully
passed the final exam.

REAL CONSTRUCTION AS AN EXAMPLE OF SUCCESSFUL WORK

An example of successful cooperation within the framework of the Program is the experience of the
Real Construction company from Atyrau city. The company has been working on the construction of
industrial and commercial facilities since 2007.

Real Construction have got the assistance from an expert company in development of welding
procedures, as well as technical support for the project. The need to improve welding processes and
ensure proper welding quality was largely related to the company’s plans to have contract works on TCO
projects within the FGP.

“The results of the project impressed us and were used on a daily basis during FGP works. The adopted
procedures are also applied on any other projects, as well as a welding technology for pipes, metal
structures, which gives our company additional opportunities and ensures better quality”, says Mirzhan
Kusmanov, Project Director of Real Construction LLP.

Thus, the company has strengthened its position as a reliable supplier for both TCO and NCOC and other
partners. Moreover, the client base, the volume of work and the revenue had also been increased. Only
a year later, new contracts helped create up to 25 new jobs.

It should be noted that in the framework of cooperation with EBRD and TCO, Real Construction received
its own approved procedures, which became its intellectual property. Therefore, alternatively to one-
time financial support, the combination of access to new knowledge and co-financing ensured long-term
growth of the business.