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KMG intends to learn from Azerbaijan and Norway’s experience on development of local content

Oil&Gas Materials 7 December 2010 18:57 (UTC +04:00)

Kazakhstan, Astana, Dec. 7 / Trend A. Maratov /

National company KazMunaiGas (KMG) is going to learn from the experience of Azerbaijan and Norway on developing local content, JSC NC "KazMunaiGas" general manager Serikbek Elshibekov said today, speaking at a regular meeting of the "Kazenergy" Association's Coordinating Council in Astana dedicated to an increase in the Kazakh content in oil and gas projects.

"Norway's success in this issue occurred largely due to government policy that supported partnership between foreign and local companies focusing on the mandatory research programs," Elshibekov said.

According to him, subsoil users should spend roughly two percent of its annual budget for the development of scientific research and development works in this country and not less than 50 percent in the country's territory.

"Regarding to Azerbaijan, then this republic's citizens, by law, must consist at least 80 percent of the total number of workers involved in export oil and gas activity," Elshibekov said.

According to him, despite efforts of the company's leadership to increase Kazakh content, the share of Kazakh content in the procurement of subsidiaries of the KMG in 2010 significantly decreased compared to previous years.

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