Тengiz oil workers voiced their concerns over the interaction with Тengizchevroil…

Тengiz oil workers voiced their concerns over the interaction with Тengizchevroil (TCO) and proposed measures to increase local content.

Strategic Partnerships Development Council (Petrocouncil), created by Kazenergy Association and NCE Atameken, held an extended roundtable “Interaction of TCOcontractors and subcontractors: synergy in production” at Tengiz field. TCOmanagers, general contractors and their subcontractors, more than 100 people gathered in the hall of the Vaternascamp to discuss pressing issues.

The event was opened by the Official Representative of the NCE Atameken for cooperation with oil and gas operators (TCO, NCOC, KPO) and development of oilfield services, Assylbek Dzhakiyev.  The most pressing issues were: industrial relations, personnel development and timeliness of payments for work or services provided. In order to reduce the risk of affecting the objectivity of the meeting, Petrocouncil employees offered the companies to voice the isssues anonymously. Thus, the companies received a constructive and safe platform for negotiations and resolution of urgent issues.

For example, one of the companies proposed to move TCO design offices to the Republic of Kazakhstan, with the maximum use of TCO’s experience in the supply of equipment and materialsand the involvement of local staffin all new projects. Since today the main design work on the FGP is carried out outside the Republic of Kazakhstan, using materials and equipment produced only in Europe and North America, domestic companies are already initially at a disadvantage.

Another problem raised during the meeting is TCO’s specifications used in the design. They are based on American, European and Kazakhstani standards and as a result, in some places the texts of specifications contradict each other, contain impossible requirements, need additional clarifications and approvals (for each contract separately), international confirmation of personnel qualification, which also affects the duration and cost of work.

TCO contractors and subcontractors propose to organize a working group, consisting of TCO authorized engineers and specialists,on the one hand, and representatives of NCE Atameken and Kazenergyand Kazservice Associations, as well as the Association of Kazakhstan Machinery Industry, in order to eliminate inconsistencies in the project specifications.

The dialogue also revealed that some TCO subcontractors are not aware of the SME support programs of the European Bank for Reconstruction and Development. These programs cover up to 85% of the costs of hiring consultants and training company managers.

Due to the meeting, TCO contractors and subcontractors received all the necessary information regarding the development of the project. In turn, TCO managers heard the opinions of subcontractors implementing the project. The next such meeting will take place in a few months in Atyrau. Oil and Gas Industry Strategic Partnerships Development Council (Petrocouncil) is a consulting and advisory union of legal entities founded under NCE Atameken and KAZENERGY Association that coordinates actions of unions and councils and other forms of alliances acting in cooperation of NCE Atameken and KAZENERGY, the Ministry of Energy of the Republic of Kazakhstan, the Ministry for Investments and Development of the Republic of Kazakhstan, PSA and other involved structures. The Council envisaged to increase the consolidated works and exclude duplication of actions. Moreover, the Union provides and promotes interests of oil servicing companies and operators of oil and gas market to provide fair and efficient development of oil and gas market.