Share of local content in Kazakhstan’s oil and gas projects remains small

Kazakhstan, Astana, October 7/ Trend, D. Mukhtarov /

As of 2012, the share of local content in the purchasing of goods In oil and gas projects amounted to 3-8 per cent in Kazakhstan, Deputy Chairman of the Board of "KazMunaiGas" (KMG) JSC NC Magzum Mirzagaliev said in Astana on Monday.

"Currently, we mainly relate the further growth of local content with the purchases of operators of large oil and gas projects - (Kashagan, Tengiz and Karachaganak), as the share of Kazakh content in purchases of these companies is low. Thus, as of 2012 the share of local content in the purchases of goods ranged from three to eight per cent, " Mirzagaliev said during the seminar on "Development of local content - international experience and best practices" within the VIII Eurasian Forum "KAZENERGY ".

He gave several reasons for the low level of local content in oil and gas projects.

"This is - the lack of familiarity with the industry standards, requirements, terminology and technology, lack of information about upcoming activities, a general lack of knowledge about the requirements for the quality, inconsistency of local products to the requirements of operators and the language barrier, "the representative of "KMG" JSC NC said.

He also added that a major obstacle for the growth of Kazakhstan's content in oil and gas projects is a conservative position of operators to prefer experienced suppliers and service contractors instead of local companies unknown to them.

"In addition, another factor that complicates the situation is that the design is carried out abroad, and the products of foreign producers are put on the design documentation when they are being designed," he said.

According to him, "KMG" JSC NC signed the Aktau declaration on joint actions with the major oil and gas operators - TCO (Tengizchevroil), NCOC (North Caspian Operating Company), KPO (Karachaganak Petroleum Operating) in order to increase the Kazakh content in large oil and gas projects.

"The document envisages the unification of standards and procedures for oil and gas operators, creating a unified database for Kazakhstan's industry , development of human resources and support to scientific and research work," Mirzagaliev said.

In addition, according to Deputy Minister of Industry and New Technologies Nurlan Sauranbaev, the Ministry of Industry and New Technologies of Kazakhstan takes a series of measures to increase local content in oil and gas projects

"In particular, new rules were adopted for the purchase of goods, works and services during subsoil operations; there was carried out work on the development of high-tech domestic service within major oil and gas projects; operative and transparent procedure for the purchase of goods by subsoil users is provided," Sauranbayev said.

According to him, as of the first six months of 2013, the overall increase in the share of local content in all subjects of monitoring amounted to 12, 2 per cent, or 726 billion tenge ($ 1 = 154.15 tenge) compared to the same period of 2011.

Nevertheless, he stressed that Kazakh producers receive some $30 billion worth of contracts from the state per year, which go to the development of national content.

Azerbaijan’s AzerGold company opens tender to buy generators
Azerbaijan’s AzerGold company opens tender to buy generators
Kazakhstan’s national postal service operator to buy consumables via tender
Kazakhstan’s national postal service operator to buy consumables via tender
Kazakh-German oil extracting JV opens tender for design documentation dev't
Kazakh-German oil extracting JV opens tender for design documentation dev't
Loading Bars
Raul Castro resigning from Cuba’s Communist Party
Azerbaijani IT company working on creating new network, server infrastructures
Georgian Economy Ministry to form expert council on Namakhvani HPP
Relations between Russia, Azerbaijan attain degree of strategic alliance - Federation Council Chair of Russian Federal Assembly
Turkish engineers develop fiber that kills coronavirus in minutes
Uzbekistan’s gold and foreign exchange reserves drop to $32.6 billion
Iran’s petrochemical output to reach $40b: Oil Minister
Relations within CIS IA to make comprehensive partnership ties more profound among member states - Chair of Azerbaijani Parliament (PHOTO)
Azerbaijani gymnasts win set of awards at Trampoline Hopes Cup tournament
Russia to permanently ban entry for eight US officials
Liabilities of Azerbaijan's Kapital Bank increase in 1Q2021
Azerbaijan's Kapital Bank completes 1Q2021 with profit
Azerbaijan’s production of oil and gas condensate down
Big share of Azerbaijan's GDP in Q1 2021 accounts for industrial sector
Azerbaijan announces date of next coupon payments on SOCAR bonds
Uzbekistan, Kyrgyzstan increase trade turnover
Azerbaijani insurance company to increase volume of payouts
Georgia, Turkey have significant prospects for co-op in agriculture, forestry
Georgian 'Mambo Frost' company exports its products to Azerbaijan
Fighter aircraft crashes in Kazakhstan
Russia adds 8,995 COVID-19 cases
Head of EU Delegation to Azerbaijan summoned to Azerbaijani MFA
Georgian budget to save funds thanks to low-interest rate on new Eurobonds
Azerbaijan discloses number of COVID-19 vaccinated citizens
Azerbaijan confirms 2,163 more COVID-19 cases, 2,251 recoveries
Frequency of regular flights between Georgia and Israel increases
Azerbaijani president, first lady sign obituary on famous film director’s death
Georgia not to revise 2021 budget
Volume of cargo exported by Azerbaijan via sea in 2021 disclosed
Raisina dialogue: Indo-Pacific epicentre of strategic competition, says Australia PM
Azerbaijan records sharp increase in cargo movement by air
Remittance inflows from Azerbaijan to Georgia show growth
Decrease in apartment prices in Georgia not expected - analyst
US investors aim to finance Georgian startups
Azerbaijan expanding network of seismic stations (PHOTO)
Turkmenistan prioritizes promotion of domestic goods to world markets
Kazakhstan boosts trade with Tajikistan despite COVID-19
Azerbaijan shows footage from Memer village of Gubadli district (PHOTO/VIDEO)
Nominal income of Azerbaijani population drops for Q12021
Foreigners show interest in making investments in Georgia
Azerbaijan's Azertutun company to be privatized - decree
Kazakhstan to amend rules for use of unmanned aircraft systems
Dozens of vehicles to be put up for state property auction in Azerbaijan
Next volume of ADA University’s Baku Dialogues Journal published
FAO working on approving Country Program Framing with Turkmenistan
U.S. housing starts increase more than expected in March
Photo capturing reaction to relative's death in Armenian attack on Azerbaijani Ganja named ‘Media Photo of Year’ in Turkey
Nokia expanding its activities in Georgia
SIEMENS AG modernizing thermal power plants in Uzbekistan’s Tashkent
Georgia shares data on dried fruit exports
Uzbekneftegaz JSC implementing modernization of unit at Uzbekistan's Shurtan Headings
Azerbaijan sees increase in inflation rate for Q12021
Turkmenistan leads in aviation oil exports to Georgia
Volume of Azerbaijan's 1Q2021 railway cargo traffic revealed
Russia's Yandex to launch e-grocery delivery in Paris then London
Kansas City revenue falls 3.5% as COVID-19 hits volumes
India To Spend $200 Million In Next 5-7 Years To Promote Hydrogen Use
Georgian Railway plans to issue Eurobonds in June 2021
Turkmenistan sees increase in number of registered business entities
Russian Hevel Energy Group commissions solar plant in Kazakhstan
UK PM Boris Johnson To Finalise "Roadmap 2030" With India: High Commission
India, France sign agreement for cooperation on Gaganyaan mission
Amazon announces $250 million fund for small, medium businesses in India
Sputnik V covid vaccine deliveries to India to begin this month
Anglo Asian Mining lowers gold output in Azerbaijan
International airport being built in Uzbekistan's Samarkand
Iran top OPEC oil producer for March 2021
Total assets of Azerbaijan's Kapital Bank increase
Japan provides loan to Uzbekistan within socio-economic dev't
Iran expects increase in production
Azerbaijan restoring roads in Tartar damaged during Second Karabakh War (PHOTO)
Memorandum of Understanding on co-op between Azerbaijan and OIC in field of statistics approved
COVID-19 affects trade turnover between Switzerland, Azerbaijan - ambassador
President of Afghanistan holds meeting with Nizami Ganjavi International Center (PHOTO)
Volume of natural gas industrial treatment at Turkmenistan’s Galkynysh field revealed
Iran has to take advantage of regional markets - Chamber of Commerce
Russia discloses volume of Sputnik V vaccine to be supplied to Azerbaijan
Azerbaijan shares data on cancelled tender, quotation poll results
Iran, Qatar may connect their power networks
Azerbaijan reveals 2M2021 data on cargo movement via TRACECA
Georgia sees increase in production of nuts and grapes
Meetings held in Azerbaijan with representatives of state bodies to switch to G-Cloud
Azerbaijan Airlines’ Supervisory Board holds first meeting (PHOTO)
China to invest in development of Iranian ports
Production of wheat and potato in Georgia increases
Switzerland sees potential in strengthening co-op with Azerbaijan in energy field
Uzbekistan interested in import of livestock from Kyrgyz Republic
Turkmenistan receives new industrial oil inflow
Uzbekistan discloses processing capacity of sunflower seeds by 2022
Azerbaijan talks reconstruction of several fish farms
VTB Group concludes deal for acquisition of Kazakhstan's KAZ Minerals
SOCAR boosts exports of oil, petrochemical and gas-chemical products
State Tax Service of Azerbaijan talks tax fees for online services
Passenger transportation indicators plummet in Kazakhstan
Azerbaijan's 1Q2021 GDP slightly decreases
Azerbaijani president, first lady view renovation, restoration work in Baku's Pirshaghi settlement (PHOTO)
Azerbaijan’s gas exports see 45% growth
Azerbaijan boosts gas exports via Baku-Tbilisi-Erzurum in 1Q2021
Azerbaijan records surplus in 1Q2021 state budget
Azerbaijan decreases oil exports via BTC
All news