Kazakhstan Oilfield Service
Rashid Zhaksylykov, Chairman of the Presidium of KazService: «For 15 Нears, We Have Been Working to Increase Kazakhstani Content»
Petroleum exclusive interview ahead of the anniversary
– We are speaking with you in early 2026, so this is a good time to sum up the past year. What was it like for Kazakhstan’s oilfield services sector?
– Last year, one could say, was among the most difficult and unstable in terms of oil production. When operators' day-to-day operations suffer, they are forced into cost-saving mode, and that, in turn, negatively affects the oilfield services sector because its economics depend directly on operators' activity. As a result, oilfield services companies spent the year in an agitated environment.
Second, as you know, throughout the year, there were many high-profile statements about new projects. However, as of today, some of them still have not found investors, others are awaiting intergovernmental agreement approvals, and others are waiting for changes in the global economy and world politics. One of our hopes, the Kalamkas Khazar project, which we discussed a lot, lost its largest and most influential investor, Lukoil, at the end of the year.
Still, there were positive developments. One direction in oil and gas petrochemicals has started, and construction has begun, even if not yet at full scale, on two major projects: the gas separation complex at Tengiz and the polyethylene plant in Atyrau. So 2025 can be described as a year of tests not only for the sector, but for companies overall.
Looking more broadly, recent years have been a period of searching for contracts and new projects. We are adapting to the situation and developing a strategy to enter the global market. We have many ambitious plans. We want a presence in the European and US markets to provide service work on the Arabian Peninsula and to participate in tenders and construction projects with national companies.
Previously, oilfield services companies were skeptical about domestic tenders conducted through Samruk-Kazyna. Today, they are gradually beginning to take part in these procedures. The participation of private oilfield services companies helps transform governance in national companies and brings service work into a more open environment.
Most importantly, our country continues to develop without pause, seeks new economic opportunities, and is changing politically. That is certainly encouraging. In 2025, the global economy was also going through a period of rethinking. National interests are beginning to prevail over globalization, and large international organizations do not always fulfill their functions. So the lack of new projects in Kazakhstan is only one source of discomfort. Global political and economic changes also have an impact.
In addition, business culture is changing. If we used to talk about robotization, today artificial intelligence is moving to the forefront. Mastering new technologies and directions creates opportunities for oilfield services companies to develop and opens up new prospects.
Overall, we are satisfied with the year's results. Not a single job was lost, not a single company went bankrupt, and there were no layoffs. We preserved our capabilities, competencies, and strength.
– Has the situation with Kazakhstani content in the oil and gas sector been improving in recent years? Do you see growth and development among domestic manufacturers and contractors?
– You know that this year marks KazService's 15th anniversary. For the past 15 years, we have been working every day to increase the amount of Kazakhstani content. One clear example is the Future Growth Project (FGP) at the Tengiz field. Initially, investors planned to allocate only $12 of a $50 billion budget to remain in Kazakhstan. Through the dedicated work of all government agencies, operators, national companies, and KazService, we increased that figure to more than $20 billion. This is a major change.
Today, we cover about 90% of construction work and more than 70% of design and engineering work. Domestic companies provide services at virtually 100%, and works at more than 90%. The most sensitive area has been goods. But 2025 showed that Kazakhstani businesses have shifted toward quality and the right strategic goals. Operators, seeing these changes and the emergence of new manufacturers, began engaging more actively. As you know, in 2024, we held three major forums with each operator on goods localization, and those forums delivered results.
If the indicator for goods was only 4% in 2024, in 2025 it was already 12%. KPO became the leader overall, moving from 9% to 17%. UCC is also showing growth, from 1% to 12%. In other words, the lack of new projects forced us to shift focus to goods, and it produced results. Of course, this is not only KazService’s achievement. It is the work of all parties involved, including government agencies and operators. If operators and investors had not supported our initiatives, the figure would have remained at its previous level.
This is a very strong indicator, and we will continue building on it. We will aim to raise the share of Kazakhstani content in goods, of course, not to 100%, but at least to 40-50%. Right now, we are moving into manufacturing.
We are also changing our strategy and have begun exporting Kazakhstani services. This is a new approach that has already delivered many effective results. We even have a Kazakhstani company that received an invitation from the Mayor of Paris to participate in energy and communications works. That is a significant milestone.
We are changing in response to difficult economic conditions. If the situation were comfortable, we probably would not be looking for new opportunities in other countries. That is why I am pleased that progress in developing local content is not slowing down. There is still a lot of work ahead!