Kazakhstan local content makes less than 3% in software for oils and gas

Ministry of Energy RoK and Petrocouncil are calling upon oil and gas operators to involve local IT talented people and to develop Kazakhstan local content in IT services.

Petrocouncil jointly with the Republic of Kazakhstan Ministry of Energy held a meeting with managers responsible for digital transformation in TCO, NCOC, KPO and Samruk-Kazyna. All these companies have already approved digital transformation strategies and plan to carry out active work as to digitalization of processes.

Republic of Kazakhstan Vice-minister of energy – Zhanat Zhakhmetova – stated that today it is especially important to ensure safety on oil and gas deposit fields using new technologies. Besides she emphasized that it is necessary to develop related sector of economy and to help local IT companies: “We see that Kazakhstan local content makes less than 3% in software area, 20-30% – in IT services. We hope that our joint work will help us to grow this index to 50%”. 

In the same evening the Vice-minister addressed domestic IT companies with a question “What particular difficulties do they experience in working with large oil and gas operators?”. Currently the Ministry of Energy carries out collection of data and detailed analysis of problems, which impede development of Kazakhstan local content.

In their turn operators have also told about difficulties, which they have to encounter. For example, Ivo Alberes – NCOC manager – has acknowledged that they currently need local human resources, who have skills in data analysis and data visualization. TCO said that due to COVID-19 pandemic it reviews the expenses previously planned for digital transformation to an insignificant extent. In this context Kazakhstan companies have an advantage since cost of their services is fully competitive.