Kazakhstan, Astana, April 16 / Trend D.Mukhtarov /
The total procurement of products in 2012 when JSC National Company KazMunaiGas (NC KMG) purchased goods, was at a cost of over 36 billion tenge (about $240 million), director of the Domestic Content Development Department of KMG Bolat Tashmetov said on Tuesday at the round table 'Oil Engineering' within the scope of the first Machinery Constructors Forum of Kazakhstan.
He noted that in 2011 this figure was 33 billion tenge ($220 million) and in 1998 only 262 million tenge (about $1.7 million dollars).
Bolat Tashmetov recalled that in 1997, the company developed the first programme for the development of oil and gas engineering sector in the Republic of Kazakhstan. The main objective was the organisation of machinery production urgently needed for the oil and gas sector of the country for the stabilisation and improvement of the oil production level.
At the same time, the KMG representative admitted that along with the overall positive dynamics of growth in oil and gas equipment production in Kazakhstan it is too early to speak about the complete domination of domestic machinery products in procurements by KMG and other subsoil users.
In the mid-1990s, Kazakhstan's oil industry faced an acute shortage of oil and gas equipment. The special equipment base became obsolete and required renewal which led to a significant increase in the number of wells awaiting repair.
Deficiency of oil-production equipment, spare parts, materials and tools for the underground and capital repairs of wells led to a drop in oil production.
Moreover, defence machine building enterprises of the republic after the collapse of the Soviet Union were in decline, as the demand for military products sharply reduced. Most plants in Kazakhstan had not been engaged in manufacturing products for the oil and gas industry