Int’ l certification to permit Kazakh producers to participate in Kashagan and Karachaganak projects
Azerbaijan, Baku, March 29 /Trend E. Kosolapova/
Obtaining of the international certification will permit Kazakh producers of oil and gas equipment to participate in Kashagan and Karachaganak and other large oil projects, the Kazakh national agency for the development of local content NADLoC wrote Trend in an e-mail.
"Today, the majority of our oil equipment manufacturers, rendering maintenance services, primarily focused on the needs of the domestic market, including the Kashagan and Karachaganak projects. Here they can have competition with foreign producers," NADLoC said.
The Kazakh government intends to support domestic producers of oil and gas equipment, by reimbursing 50 per cent of their costs towards obtaining the international certification, board chairman of the national agency for the development of local content NADLoC Dauren Abdyhamitov said on Wednesday. Abdyhamitov said that the Kazakh government developed and submitted a draft resolution which envisages a preference for domestic producers.
"The budget for the current year has about 172 million tenge ($1 - 147.7 tenge) set aside for this purpose," Abdyhamitov said.
Currently, some Kazakh companies, supported by the state, supply their oil and gas equipment abroad, NADLoC told Trend.
"Due to reimbursing of 50 per cent of costs towards obtaining the international certification, necessary for participation in large oil and gas projects, more Kazakh producers will have opportunity to enter foreign markets," the source said.
According to NADLoC, the assessment of compliance with international standards and obtaining of the international certificate will be a quality assurance of Kazakh producers' products and services, lead to its competitive advantage and a more stable position in the Kazakh market and open up new markets around the world.
Kashagan is Kazakhstan's super-giant oil and gas field located in the north of the Caspian Sea. According to the Kazakh geologists, geological reserves at Kashagan are estimated at 4.8 billion tons of oil. Up to 50 million tons of oil will be extracted in the first stage of experimental-industrial development in the field annually. Oil export from the field can be doubled in the second phase scheduled for 2018 -2019.
Karachaganak field located in Kazakhstan is one of the largest operating oil and gas fields in the world. It has 1.2 billion tons of oil and condensate and more than 1.35 trillion cubic meters of gas. About 45 percent of gas and 18 percent of oil producing in Kazakhstan are extracted in this field.