Analysis of goods procurement by oil companies in Kazakhstan
Based on procurement reports submitted by oil-producing companies to the Subsoil Users Report System of the Ministry of Energy of the Republic of Kazakhstan for 2019, the Association of Oil Service Companies of Kazakhstan conducted a detailed analysis of goods purchased by oil-producing companies at the end of 2019.
The analysis was carried out based on data from procurements of 96 companies that purchased goods worth 1 tln 47 bln tenge. With that in mind, the total share of local content (LC) was 16.3%. Tengizchevroil LLP, which implements a major Future Growth Project-Wellhead Pressure Management Project, accounts for 59% of all goods’ procurements. Excluding Tengizchevroil LLP, the share of local content is 33%. This means that oil companies placed 1/3 of all orders with domestic producers.
Below is a list of the ten largest customers for products, which account for 89% of all procurements. Out of the ten largest customers, the highest LC indicator of 60.4% is observed in Mangistaumunaigaz JSC, and the lowest indicator of 2.9% is observed in Zhaikmunai LLP.