Timur Kulibayev has set the Petrocouncil the task of increasing the RoK content in the procurement programs of subsoil users

Within the framework of the expanded meeting of the Regional Council of the Chamber of Entrepreneurs dedicated to the 120th anniversary of Kazakh oil Timur Kulibayev, Chairman of the Presidium of the National Chamber of Entrepreneurs of RK Atameken, Chairman of Kazenergy Association and Akim of Atyrau Region Nurlan Nogayev, among others, raised issues of localization of production and development of RoK content in procurement activities of subsoil users.

After a speech of Secretary of the Council for the Development of Strategic Partnerships in the Oil and Gas Industry (Petrocouncil) Asylbek Dzhakiyev, who proposed to provide domestic manufacturers with tax preferences in order to align their conditions with those of foreign suppliers who do not pay taxes and customs duties, Timur Kulibayev noted: “Kazakhstan is a small market, despite the fact that there are large enterprises.  It is necessary to explore neighboring markets: Azerbaijan, Uzbekistan, Turkmenistan, Russia. Also, to analyze measures to support exports, only then we can talk about the industrial zone. In any case, your work is useful, you are a bridge between domestic manufacturers and operators, you can increase the Kazakh content in the procurement of domestic subsoil users – this is your task”.

In addition, Timur Askarovitch expressed the hope that the Petrocouncil will become a platform that can help domestic entrepreneurs deal with the procurement of subsoil users. «If you look at the dynamics of the procurement of goods, works and services by year, then, in general, the share of local content varies from 40 to 49%. TCO, KPO and NCOC make 77% of all purchases in the industry (more than 4 trillion. 640 billion tenge, approx.). For goods, indicators are  – 20%, of which engineering – only 3%. The potential for the development of new products is more than 200 million US dollars. In turn, Atameken is ready to take an active part in attracting more local participation and become a kind of bridge between the country’s entrepreneurial pool and the leadership of the so-called Big Three, said the head of Atameken.

In addition to the heads of government departments, domestic businessmen attended the expanded meeting, and the general director of Tengizchevroil LLP, Immer Bonner, and NCOC managing director, Richard Howe. Asylbek Dzhakiyev thanked the NCOC management for the publication of a long-term procurement plan that would allow domestic entrepreneurs to plan their production, and expressed the hope that Tengizchevroil LLP will follow this example. Timur Kulibayev, in turn, said that on August 1, 2019 a single procurement window was launched at the Atameken site, the so-called Market Monitoring and Expertise Center. Procurement bases flock to this site: government, Samruk-Kazyna JSC, Baiterek NMH JSC, Kazagro Holding JSC and subsoil user purchases. The entire volume of purchases is displayed on a single platform, at the same time a business register is created – a database of entrepreneurs, which allows you to see what the company produces, what its credit history is, whether the company is able to perform work and more. The counterparty will always have the opportunity to see who they work with, whether the company is self-sufficient, and whether it can actually perform the work.

“We see that government agencies purchase homogeneous products, 75% of government purchases come from a single source. Unfortunately, we observe that the excess of prices reaches 30%. The new system itself will automatically provide information on where government purchases take place, which go beyond the price and allowable rates. This will immediately be a signal for the Anti-Corruption Agency to pay attention to procurement. I think this will increase the transparency of procurement” said Timur Kulibayev.

After meeting with entrepreneurs, Timur Kulibayev presented departmental awards to employees of the Atyrau refinery. During the visit, the head of the association toured the territory of the enterprise and inspected the new technological units built during the modernization of the plant in 2009-2017. Near the country’s largest deep oil refining complex, the general director of ANPZ LLP Sh. Danbay informed the KAZENERGY Chairman about the results of the three stages of modernization of the refinery, as well as about the systems introduced into production as part of automation and digitalization (effective preparation and implementation of Turnarounds based on RLG, MES and SpiralPlan manufacturing process management, IBM MAXIMO maintenance and repair management, Meridium APM inspection and  reliability management).