Development of local content following the results of 2013
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Development of local content following the results of 2013. General guidelines for local content development . Organizing new production of goods and services in the RoK. Increasing the share of local content in procurement of goods, works and services. 2. 1.

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Development of local content following the results of 2013

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Development of local content following the results of 2013

Development of local content following the results of 2013


Development of local content following the results of 2013

General guidelines for local contentdevelopment

Organizing new production of goods and services in the RoK

Increasing the share of local content in procurement of goods, works and services

2

1

Increasing local content in major oil and gas projects

Implementing the AktauDeclaration on Joint Actions

4

3


Development of local content following the results of 2013

1

2

3

4

Increasing a share of local content in procurement of goods, works and services

Organizing new production of goods and services in the RoK

Increasing local content in major oil and gas projects

Implementing the AktauDeclaration

Main results, billion tenge

Measures taken

1 259

  • Increasing the number of Kazakhstani companies participating in procurement processes through:

    • transparency in procurement;

    • clarification of procurement procedures (visiting meetings are conducted on a constant basis);

    • introduction of a mechanism of domestic manufacturers support in the Procurement Rules (including procurement only among OTP, providing of conditional discounts that can reach 25%);

    • Provision of Information to business communities about the company’s needs at forums and conferences.

  • Conclusion of long-term contracts with domestic manufacturers in order to stimulate the increase in a share of local content in their products, modernize the capacities, transfer the technologies and create new products.

  • Establishment of key performance indicators on a share of Kazakh content in procurement of goods, works and services for SDEs’ executives.

1 178

426

507

494

66%

Works and services

Works and services

462

62%

671

833

Import, goods without ST-KZ

66%

57%

339

67%

209

49%

Goods

Goods

Local content

2012

2013

Long-term contracts with domestic manufacturers

3


Development of local content following the results of 2013

1

2

3

4

Increasing a share of local content in procurement of goods, works and services

Organizing new production of goods and services in the RoK

Increasing local content in major oil and gas projects

Implementing the Aktau Declaration

Measures taken

Main results

  • Development and implementation of the Promotion Program of JSC NC "KazMunayGas" on development of the oil and gas machine building and mastering the production of new types of oil and gas equipment. The Program involves 69 enterprises

  • Presentation to OTP of technical requirements, information about needs.

  • Enabling to conduct pilot tests of products at the KMG enterprises.

  • Conclusion of long-term contracts and memorandums with OTP for arrangement of new production industries. Establishment for SDE’s managers of key performance indicators on conclusion of long-term contracts with domestic manufacturers and organization of new industries.

  • Identification of needs and promising directions for localization of oil and gas machine building and oilfield services.

  • Search for potential investors

  • Arrangement of forums

  • Work on creation of 6 joint ventures with leading international companies for manufacture of products of the oil and gas machine building (pumps, very leak tight threaded connections of Premium class, shut-off valves, wellhead and X mas tree equipment, separators, flare systems, control and measuring devices, and other oil and gas equipment) is carried out. Such productions will allow creating more than 300 job places

  • In 2013, the following new productions in Zhanaozen were arranged:

    • A shop for diagnosis and repair of underground equipment. The shop repairs tubing pipe - 400 000 pcs. / year; gear-wheel pump - 200 000 pcs. / year; repair rod well pump - 10,000 pcs. / year. 300 people were employed.

    • Well-killing fluid plant. Plant’s design capacity: preparation of 100 m3 of fluid per day. 15 people have been employed.

    • Works on arrangement of a service center for 1000 units of cars and an oilfield equipment repair shop are being conducted.

4


Development of local content following the results of 2013

1

2

3

4

Increasing a share of local content in procurement of goods, works and services

Organizing new production of goods and services in the RoK

Increasing local content in major oil and gas projects

Implementing the Aktau Declaration

Measures taken

Main results

  • Participation in a joint Working group on Tengiz Future Growth Project, preparation of proposals for local content development

  • Participation in the Working group on Karachaganak Field Expansion Project is in the planning stage.

  • Increasing the local content under the projects of refineries' reconstruction and modernization

  • Engineering JV has been established in partnership with domestic and foreign companies (Fluor, Worley Parsons, KING (KMG) and STAP), and work on JV creation between KMG and Nabors Drilling, the world's leading drilling company, is conducted.

  • More than 20 thousand Project-related jobs will be created in Tengizand in different places of production and maintenance in Kazakhstan

  • More than 500 permanent jobs for the subsequent operation and maintenance of production facilities will be created

  • State and private training programs will be used and the existing ones will be expanded to enhance the qualification level of Kazakhstani workers

  • Orders for module construction, racks of prefabricated elements and units in Kazakhstan will be placed in the volume from 44 000 tons to 90 000 tons

  • At least one project - SPAIID - will be implemented in coordination with the MINT of the RoK

  • Requirements will be specified for suppliers and contractors on cooperation with Kazakhstani companies.

5


Development of local content following the results of 2013

1

2

3

4

Increasing a share of local content in procurement of goods, works and services

Organizing new production of goods and services in the RoK

Increasing local content in major oil and gas projects

Implementing the Aktau Declaration

Measures taken

Main results

  • AktauDeclaration has been signed between KMG, TCO, NCOC, KPO which suggests joint actions on 6 directions:

    • creation of new local productions,

    • unification of standards and tender procedures

    • creation of a unified Kazakhstan industry database,

    • development of human resources potential

    • R&D support,

    • attraction of investments

  • A simplified questionnaire for all three operators has been developed for registration of interested suppliers in TCO, NCOC and KPO databases. This questionnaire will be adopted in the near future.

  • Work on creation of the Unified Suppliers Database, where the registration will take place on the basis of the developed standardized questionnaire, is in progress now

  • A list of the most popular products, oil and gas equipment, services for localization in Kazakhstan has been developed.

  • Leaders have been determined for each category of goods, which shall bear responsibility for their development.

    • TCO: reservoirs, tanks, pipes, heat exchangers;

    • KPO: fittings, electrical equipment, fittings and flanges;

    • NCOC - rotating equipment; KMG - cables, transformers.

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