The expenses on Kazakhstani content in the main production of TCO before the start of FGP were 10%

Total payments made by Tengizchevroil LLP (TCO) from 1993 to date for the procurement of Kazakhstani goods and services exceed USD 30 bn, has recently reported TCO Director General Imer Bonner.

In general, TCO total payments to Kazakhstan for the entire period of operation of the company in the country exceed USD 141 bn. This includes salaries of Kazakhstani employees, procurement of goods and services from local producers and suppliers, payments to state enterprises, dividends to the Kazakhtsnai partner, as well as taxes and royalties tranferred to the state budget.

The expenses on the purchase of Kazakhstani goods, works and services in the main production of TCO before the start of the Future Growth Project (FGP) were only 10% of the total volume of procurement.

According to the Ministry of Energy of the Republic of Kazakhstan, in 2018, TCO, NCOC and KPO imported goods worth KZT 245 bn and purchased local goods only for KZT 19 bn, which is about 7% of the total amount of the procured goods.

Within the framework of the FGP and the Wellhead Pressure Management Project (WPMP), which is estimated at USD 36.8 bn, the expenses on Kazakhstani content (KC) will amount to USD 11.9 bn, of which USD 6.7 bn has already been paid.

Imer Bonner noted that more than 430 companies registered in Kazakhstan have been involved in the work to fulfill about 1000 contracts during the implementation of the FGP\WPMP.

As an example of successful work with local producers, she cited the conclusion of contracts with companies such as Alageum Electric, Kazenergokabel and Kazturboremont totaling USD 7.5 mln. The agreement was signed for the supply of cable trays, transformers, instrument racks, low-voltage and instrument cables, as well as protective materials.

The head of TCO also told about the progress of work on the localization of goods in the framework of the Aktau Declaration. In particular, she said that Honeywell signed a contract for the creation of a workshop for the repair of NSB panels, the grand opening of which is scheduled for this September. Cameron has completed a trial assembly of Orbit valves and drive mechanisms at the Aktau facility. In addition, with the participation of Baker Hughes, production of 12 types of chemicals will be launched.

It should be noted that according to the Ministry of Energy, TCO works on localization of production with 19 manufacturers.