Kazakhstan expands participation of national companies in Karachaganak project

Photo: Kazakhstan expands participation of national companies in Karachaganak project   / Oil&Gas

Astana, Kazakhstan, March 28

By Daniyar Mukhtarov - Trend:

Kazakhstan's Karachaganak Petroleum Operating B.V. (KPO) company and Aksai Industrial Park (AIP) LLC have signed a memorandum of understanding with an accompanying road map for cooperation, Kazakh Ministry of Oil and Gas said.

"The documents signed at the initiate of the Kazakh Oil and Gas Ministry will contribute to the development of the country's potential, technology transfer and growth of the industrial sector as a result of localization of high-tech production in western Kazakhstan, "the country's Oil and Gas Ministry said.

The discussion of the related issues were completed and the next nine projects, the implementation of which will allow to fulfill the goals of import substitution, high-tech goods production and services for Karachaganak project, as well as creation of new jobs in the region, have been determined, Kazakh Oil and Gas Minister, Uzakbai Karabalin said.

"Our activity mainly focuses on increasing the local potential through sustainable development and transfer of best practices. We hope that as a result of our cooperation, Aksai Industrial Park will be able to offer competitive technological services and products necessary for KPO's production activity," Director General of Karachaganak Petroleum Operating B.V., Damiano Ratti said.

The successful implementation of his initiative will create conditions for producing more complex high-tech products able to meet the demands of Kazakhstan's oil and gas industry, according to Ratti.

The road map determines a number of main joint initiatives aiming to increase Kazakh content in the project by transferring technologies and creating new jobs for local residents, Kazakh Oil and Gas Ministry said. Main attention will be paid to the service and products that are currently supplied by foreign companies.

Additionally, it is planned to create a new equipment testing laboratory, a shop for repair of shut-off valves and complex immunoglobulin preparation, as well as introduction of technology for internal cleaning of pipelines.

Under the signed memorandum, KPO and AIP agreed to work out a coordinated action plan for determining the Karachaganak project's demand for products and services.
Moreover, there has been reached an agreement on monitoring and regular reporting on the implementation of joint initiatives.

Karachaganak Petroleum Operating B.V. is one of the companies in Kazakhstan, which is actively working on the Kazakh content development program. It allowed involvement of over 3,000 Kazakh enterprises in the development of the Karachaganak field. The share of Kazakh content in KPO contracts for supply of products, work and services hit 50.15 percent or $461.1 million in 2013.

Translated by L.Z.

Edited by C.N.

Follow us on Twitter @TRENDNewsAgency