The Italian-Kazakh business meeting on strategic cooperation “Internationalization and local content 2.0” took place on March 27th during the one of the world biggest Offshore Mediterranean Conference & Exhibition, Ravenna, Italy. 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.
Kazakh and Italian business is stepping ahead to improve the efficiency of cooperation. Luigi Ciarrocchi, the President of Assomineraria, highlighted that the meeting will deepen Kazakhstan-Italian collaboration, and bring about the understanding of the additional room for partnership because this cooperation is the real engine for the industry development.
Kazakhstani and Italian enterprises see many opportunities to work in a more efficient way by bringing together skills and knowledge from Italy to Kazakhstan and vice versa. For instance, Kazakh companies know how to work in a sour and harsh environment, and can help Italians to develop gas fields with sour content.
Another opportunity to generate more value for Italian investors is goods manufacturing. Cables, transformers, pumps, flanges and fittings, high-pressure vessels, construction materials, reservoirs, heat exchangers, valves, steel fabrication can be produced in Kazakhstan due to a constant demand as well as obligations for companies to buy products and services produced in Kazakhstan.
“Now is a period to develop assets. There are three major projects: Tengiz, Karachaganak, and Kashagan. As Eni, we are presenting only two of them, and really want to attract your attention to this country”, – assured Luca Vignati, Eni Executive Vice President for Central Asian region. “There is a pipe of few important projects that in the next 5-7 years has to be developed. Kashagan, thanks to the extremely good performance of the assets, brings many possibilities for the joint ventures. Apart from existing projects, we discuss with Kazakhstan government Kalamkas field development and see a high potential there”.
Kazakhstan Oil and Gas service industry annual turnover is 8 bln. USD, and it gives a job for more than 1,000 companies with a total number of 180 000 employees. Oilfield service market reaches 7,9 bln USD. Whereas, the share of Tengiz, Karachaganak and Kashagan procurements of goods, works and services is more than 75%.
At the same time, Raushan Naizabayeva, representative of Petrocouncil.kz, united efforts of the National Chamber of Entrepreneurs ATAMEKEN and “KazEnergy” Association, mentioned that the Republic of Kazakhstan ensures the stability of terms of agreements between Italian partners and state bodies of the Republic of Kazakhstan. There are several investments benefits created by Kazakhstani government, including exemption from import customs duties, state in-kind grants, tax incentives; providing free lands and simplifying procedures, and Investment subsidies. Petrocouncil is willing to advice all the government support available for the Italian companies in Kazakhstan.
Thanks to Confindustria and Eni both sides, Italian and Kazakh received crucial information on economically feasible goods production, annual consumption, and markets volumes. Next time both sides will meet during another event in the capital of Kazakhstan, Nur-Sultan – at the September Kazenergy Week.