Joint forum on OEM goods localization held in Atyrau

Atyrau. September 24. KazTAG - Operators of large oil & gas projects in Kazakhstan - Tengizchevroil LLP (hereinafter TCO), North Caspian Operating Company N.V. (hereinafter NCOC) and Karachaganak Petroleum Operating B.V. (hereinafter KPO) participated in the round table “Localization of Original Equipment Manufactures” (OEM) initiated by the RoK Ministry of Energy and PSA LLP (hereinafter PSA) in Atyrau on September 20. More than 30 OEMs participated and over 57 companies from different regions of the country attended the OEM Localization Round table, there was an extensive exchange of information on the possibilities of localizing businesses.
The main objective of the round table was to promote growth and development of Kazakhstani machine building market by localizing Original Equipment Manufacturers (OEM) goods and equipment in the Republic of Kazakhstan. There is high and stable demand of OEM products in the oil and gas industry for field operations and development projects. The OEM Localization round table brought together Kazakhstani and International equipment manufacturers to exchange information about the needs of large oil and gas projects and to find new opportunities for the localization of OEM goods and equipment and the development of this sector in Kazakhstan.
At the round table, the Operators presented their OEM Goods localization strategy for equipment manufacturers and learned the Operators’ needs in the short and medium term. Following the round table, the attendees put forward their proposals and ideas for the creation of joint ventures in the Republic of Kazakhstan.
The co-organizers of the round table expressed confidence that this event will give an additional incentive to Kazakhstan Machine Builders in identifying promising areas for development of new businesses and localization of production of goods in accordance with international standards. This would make it possible to increase the local content in all of the current and future oil & gas projects.
During the OEM Localization round table, a number of documents were signed: Memorandums of Understanding between the RoK Ministry of Energy, PSA and KPO; between the RoK Ministry of Energy, PSA and NCOC; and between the RoK Ministry of Energy and TCO. Several framework agreements and contracts were also signed between manufacturers and the Operators.
During the round table, Eimear Bonner, TCO General Director, stated: “TCO is currently developing more than 45 classifications of goods and materials with over 70 Kazakhstani companies. In addition, we have signed approximately 100 Kazakhstani Content Development plans with our long-term suppliers and international OEMs, who commit to nationalization, subcontracting and investment in Kazakhstan. We believe these efforts multiply the positive impact that our company and industry have on the Kazakhstani economy. They support local businesses. They create jobs for Kazakhstanis.”
As noted by NCOC Deputy Managing Director Yermek Marabayev: “NCOC, coupled with other major operators, is a part to Aktau Declaration on Joint Actions to develop local oil services in Kazakhstan. Under the said Declaration NCOC is also a member of the industry working group and one of the primary initiators to inspire an integrated project-based supply and demand as part of the conceptual project to increase local content ratio in large-scaled oil and gas projects. In recent years we are observing sustainable growth of payments for local content in the context of implementation of the North Caspian Project.”
Welcoming the participants, Edwin Blom, KPO General Director, said: “KPO takes very seriously and supports the RoK Government’s plans and initiatives aimed at the development of the Local Content and industrial innovations of the country. Over the last several years, KPO has been steadily building up the Local Content share in KPO current activities and in the Projects. This strategy applies to all areas and activities. Our efforts are resulted in improvement of Local Content performance from 47% in 2014 to 60% in 2018”
In their turn, the OEM Localization Round table delegates noted the excellent organization of the event and its extraordinary impact.