Kazakhstan plans to increase local content in "Kashagan" and "Karachaganak" projects
Astana, Kazakhstan, June 24
By Daniyar Mukhtarov - Trend:
Kazakhstan plans to increase the share of domestic participation with operators of the "Kashagan" and "Karachaganak" development projects according to the Kazakh Ministry of Industry and New Technologies.
"In order to develop local content in the framework of the production sharing agreement it is necessary to apply the method by analogy with the work carried out to increase the proportion of local content in the project for future decision "Tengizshevroil" Limited Partnership, i.e. ensure the conclusion of memoranda of understanding and cooperation in major projects in the oil and gas sector ("North Caspian Operating Company" - "Kashagan" and "Karachaganak Petroleum Operating BV"). It is necessary to provide commitment on the increase of the share of local content, transfer of experience to the Kazakh contractors and suppliers, encourage creation of joint ventures with Kazakh companies and also increase of the qualification and employment of Kazakh workers," the report said.
The report also said that a memorandum of understanding and cooperation was signed in November 2013 between Kazakhstan and "Tengizshevroil" which provides commitments to increase the proportion of domestic participation in the project from 32 to 44 percent.
It was also reported that, in accordance with the memorandum an expert group was set up, whose main objective is to achieve a share of local content in the project of future expansion of "Tengizshevroil".
Edited by CN