August 26, 2016 on behalf of Prime Minister of Kazakhstan Karim Massimov in the Ministry of Energy was held a meeting of the interdepartmental working group on local content in major oil and gas projects.
The aim of the working group was to solve all issues between the major mining companies and oilfield services, it had a positive impact on the social situation in the regions, as well as the employment of citizens of the Republic of Kazakhstan in oil and gas industry.
Already on the first meeting a number of important and urgent decisions have been taken. Tengizchevroil company (TCO) and the North Caspian Operating Company (NCOC) should consider the possibility of introducing a mechanism of awarding contracts and the early placement of orders for test projects in Tengiz and Kashagan.
In addition three largest operators of oil and gas fields – Tengiz, Karachaganak and Kashagan, LLP “PSA” and JSC NC “KazMunayGas” are up to accelerate the integration of existing databases of these operators using a single database “Alash”.
The Ministry of Energy in cooperation with the Ministry of Investment and Development of Kazakhstan and the NPP “Atameken” plans to consider the possibility of amending the rules of acquisition of goods, works and services in terms of setting the terms of payment, commensurate terms of delivery of services and other measures.
It will be carried out by joint work with the NPP “Atameken” the market analysis of domestic suppliers, making specific proposals to the Government for the creation of joint ventures with major foreign oil service companies, taking into account current commitments NCOC, Karachaganak Petroleum Operating (KPO) and TCO complexity of the work and services, availability to local suppliers, provision of works and services, economic and technical benefits.
Further, the Ministry of Energy in cooperation with the Ministry of Justice and the Minstry of national economy of Kazakhstan will conduct the possibility of reducing the time of registration of joint ventures and obtaining necessary permits, in particular, the license for the design, construction and installation works, etc ..
In addition, The Ministry of Energy, together with “Atameken”, the Ministry of National Economy, Ministry for Investment and Development of the Republic of Kazakhstan plans to develop proposals for the measures of state support of domestic oilfield services, including releasement of providers from import duties and VAT on imported equipment used in projects by TCO, NCOC and KPO.
In addition, the Ministry of Energy of the Republic of Kazakhstan jointly with “Atameken” begins work on the procurement of companies with Chinese participation for excessive demands in the technical specifications and unsubstantiated deviations by or to the Kazakh suppliers.
The Ministry of Energy is also planning to work together with “Atameken” to develop mechanisms to apply the principle of “one stop shop” for users of mineral resources, with a perspective to their interaction within the local market.
Reference: Currently, the oilfield services market in Kazakhstan is more than 1,000 different companies and a total workforce of at least 160,000 people. The oilfield accounts 40-50% of the total procurement of subsoil users.
Oilfield services market includes segments of works and services with the presence of engineers of the company employees. In particular: drilling, engineering, construction and geophysical services.
The largest number, 32% are concentrated in Atyrau region, more than 30 thousand people, next is the 29% of Mangystau, 15% Aktobe and 12% Kyzylorda and West Kazakhstan region, where the number of employees of the oil service companies are at least 12 thousand people. In wells drilling and construction the largest number of people is concentrated in Mangistau region and in other areas Atyrau city leads.
At the end of 2015 the overall cost of oilfield services in the sphere of subsoil use was amounted to 1 trillion. 310 billion tenge, which is on 3% less than in 2014 year -. 1 trillion. 346 billion tenge. If we divide the subsoil use market into 3 main groups, the share of purchases of three major operators will increase substantially being 72% of the total purchase, instead of 48% in 2014.
Source: energo.gov.kz