Astana, Kazakhstan, March 26
By Daniyar Mukhtarov - Trend:
Kazakh producers will join the Future Growth Project at the Tengiz field as local partners, Deputy Minister of Oil and Gas of Kazakhstan, Magzum Mirzagaliev told Trend.
"The Future Growth Project at Tengiz offers a number of opportunities for domestic enterprises. This means it becomes possible to join large projects as a local partner of Tengizchevroil LLP," Mirzagaliev said.
The deputy minister pointed out that a memorandum of understanding was signed between the government of Kazakhstan and Tengizchevroil LLP in 2013. One of the key points in the document is the recommendation of the operator to foreign contractors on the localisation of production and creation of joint ventures with Kazakh partners.
Under the memorandum it is planned to conduct work with foreign companies to establish joint ventures with Kazakh contractors for the production of modular structures for the Future Growth Project and maintenance of equipment in the long term, according to Mirzagaliev.
"Negotiations have already begun between Teniz Burgylau LLP and the U.S. Neighbors Drilling company. Two Design Institutes of Kazakhstan - KING and KGNT have already been included in the KPJV joint enterprise and successfully cooperate with the Fluor and WorleyParsons companies," the deputy minister said.
At least one project will be implemented under the State Programme of Forced Industrial-Innovative Development on the modernisation and increase of capacity of the domestic industrial supplier and the modernisation of the selected enterprises on the basis of the Algorithm Technopark in the city of Uralsk will be supported, according to Mirzagaliev.
The deputy minister stressed that jointly with Tengizchevroil, the Oil Ministry is discussing the details of the joint work within an expert group.
"The whole project was divided into seven specific areas. These are manufacturing of modules, construction, logistics, drilling, equipment and materials, design and management and commissioning work. The volume of work on each of the areas, the total budget and the potential level of local content has been determined as well as the capacity of local producers assessed," the deputy minister said.
It was earlier reported that the cost of the Future Growth Project at Tengiz field is estimated at $24 billion. At least $7.7 billion to $10.5 billion of this amount is planned to be spent on the procurement of goods, work and services from local producers.
Translated by L.Z.
Edited by S.M.