What kind of «Memorandum about…» did the Ministry of Energy and TCO, NCOC, KPO sign?

More than 30 OEM (original equipment manufacturers) and 57 domestic manufacturers from different regions of the country came to Atyrau to exchange information about possibilities of developing local content in production. The Republic of Kazakhstan Ministry of energy, PSA authorized body and mayor’s administration of Atyrau region organized this Forum for local content development by OEM with the purpose of promoting growth and development of Kazakhstan products market.

The main event of the Forum was signing of six Memoranda and agreements at once: the Memorandum of Understanding between the Republic of Kazakhstan Ministry of Energy, PSA LLP authorized body and KPO, the Memorandum on Understanding between the Republic of  Kazakhstan Ministry of Energy, PSA LLP authorized body and NCOC, between the Republic of Kazakhstan Ministry of Energy and TCO. Moreover several framework agreements and contracts between manufacturers and Operators were signed.

The basic objectives of cooperation are creation a unified list of equipment and accessories for large scale oil and gas projects, holding of negotiations with original equipment manufacturers and other concerned parties, launching of test production of goods under the auspices of existing enterprises of the Republic of Kazakhstan, development of  local content in production (service, repair, maintenance) and creation of  warehouse(s) on the Republic of  Kazakhstan territory for storage of equipment and spare parts of original equipment manufacturers.

Also the Operators (NCOC, TCO) signed framework agreements and contracts. Thus NCOC signed 4 framework agreements with original equipment manufacturers (Liebherr (via Liebherr LLP), Parker Hannifin (via Gateway Valves), John Crane Middle East FZE, Caterpillar (Borusan Makina LLP)) and 2 contracts with domestic goods manufacturers (Simtronics (via Altezza), Boehmer Armaturen Kazakhstan LLP). TCO signed 2 framework agreements wit original equipment manufacturers (Cameron, MRC).

It should be noted that the event was sponsored by operators of large oil and gas projects in Kazakhstan: Tengizchevroil LLP (hereinafter referred to as TCO), North Caspian Operating Company N.V. (hereinafter referred to as NCOC) and Karachaganak Petroleum Operating B.V. (hereinafter referred to as KPO). All of them presented their own strategy for development of local content in OEM goods with the purpose of making their needs known to equipment manufacturers in the short term and long term.

“Currently TCO is developing more than 45 classifications of goods and materials with more than 70 Kazakhstan companies. Besides we have signed about 100 Kazakhstan local content development plans with our constant suppliers and international OEM, who are committed to nationalization, signing of subcontracts and investments in Kazakhstan. We believe that these efforts increase positive influence, which our company and this industry are making on Kazakhstan economy. They support local business. They create jobs for Kazakhstan citizens”, – stated Imer Bonner – TCO general director – in the course of the forum.