Press releases
Forum on localization of production chemicals
ALMATY, November 19, 2018– Kazakhstan’s major oil and gas field Operators – National Company KazMunaiGas JSC (‘KMG’), Tengizchevroil LLP (‘TCO’), North Caspian Operating Company N.V. (‘NCOC’) and Karachaganak Petroleum Operating B.V. (‘KPO’) held a joint Forum on localization of production chemicals in collaboration with Oil & Gas Strategical Partnership Development Council.
The main objective of the Forum is to stimulate growth and develop the domestic market of chemical products amid high and stable demand in oil and gas projects. The Forum brought together domestic and international suppliers and manufacturers of chemical products to share information on the needs and demands of the Operators, and to find new opportunities to develop the chemicals production sector in Kazakhstan.
According to Azamat Kushekov, NCOC Process and Engineering and Technology Team Lead, the event is held as part of the efforts to implement the initiatives of the Aktau Declaration, signed in 2012 by four major Oil and Gas Operators. A working group was created to assist and support companies in ensuring compliance with the Operators’ standards and technical requirements. He emphasized that among the objectives of the Forum is to familiarized current and potential suppliers with the North Caspian project, advise domestic companies on the Consortium’s short and mid-term needs for industrial chemicals and focus their attention on the plans of the North Caspian project to increase local content in chemicals production. Mr. Kushekov stated that NCOC utilizes a thorough process of selecting industrial chemicals and potential suppliers, and also encouraged the participants to take advantage of the Forum as a platform to discuss cooperation in localizing chemicals production directly with NCOC representatives.
In the meantime, Mr. Kushekov reminded that the company applies a systematic approach and adopted a long-term strategy with clear objectives to develop local content. NCOC gives preference to local companies over foreign contractors, subject to their compliance with qualification requirements established by the North Caspian Production Sharing Agreement and the availability of competitive goods and services. It should also be mentioned that NCOC assists local companies in transition to international standards and in strengthening partnerships with international companies by way of creating joint ventures. A special program of training local companies to international standards is successfully implemented, and as a result hundreds of Kazakhstani companies are certified to the standards of the International Organization for Standardization (ISO).
Daniel Zholdybayev, TCO Domestic Market Development Director, stated that localization of chemicals production implies the development of local companies that produce chemicals using international technology. This will contribute to attracting foreign investment, technology transfer, establishing joint ventures and transfer of professional experience and knowledge.
The Forum presented an overview of the projects of the North Caspian, Tengiz and Karachaganak fields to familiarize with their demands in various types of chemicals in the short and mid-term perspective. More than 100 companies from different regions of the country took part in the Forum where they widely shared information on business opportunities. As a result, the Forum participants put forward their proposals and ideas on establishing