OREANDA-NEWS. On October 6, “KAZENERGY” Kazakhstan Association of oil and gas and energy sector, JSC NC “KazMunayGas” (hereinafter – KMG), and three large operators of oil and gas fields in Kazakhstan – North Caspian Operating Company NV (hereinafter – NCOC), Tengizchevroil LLP (hereinafter – TCO) and Karachaganak Petroleum Operating BV (hereinafter – KPO) conducted a joint forum of suppliers “Aktau Declaration: synergy and localization” in Almaty.

One of the successful aspects of such a cooperation is introduction and implementation of the principles of “Aktau Declaration on joint actions” (hereinafter – Declaration) as of September 2012, expressed in “supporting the conceptual project for local content development in the RK”.

As Marat Karimov, Deputy General Director of KPO, noted, KPO strongly supports the initiatives of the Government of the RK on the local content development and works in close cooperation with the authorized bodies of the Republic to achieve this task.

“Increase of the local potential through the sustainable development and advanced experience transfer is the principle direction of our activities. This forum is the platform for discussion of the opportunities for increasing the Kazakhstan content in KPO projects and it will allow discussing the issues of all the involved parties” – Marat Karimov said.

“Priority directions specified in Aktau Declaration will allow TCO and other companies to coordinate their activities on the Kazakhstan content development, which will bring long-term benefit for the Republic of Kazakhstan”, - Tim Miller, General Director of TCO, noted.

The Declaration reflects intentions of the largest oil and gas operators of the Republic of Kazakhstan to develop the following priority directions of activities concerning the local content: engineering and services development, human resources development and Research and Development works (R & D), unification of preliminary qualification evaluation process and unification of tender procedures as well as creation of a single database of Kazakhstan industry. Performance of the Declaration aims is under the control of the Ministry of Energy of the RK.

Zhakyp Marabayev, Deputy Managing Director of NCOC, specifically noted that the provisions of Aktau Declaration have become one of the basic in the developed Medium-term plan for the local content development for 2015-2017. “NCOC believes that provisions of Aktau Declaration has a great potential for further development of the local content and improvement of this work”, - Zhakyp Marabayev said.

The main aim of the forum – informing the industry on the Declaration implementation status and assistance in the development of the domestic market of commodities and services production and localization of priority commodities groups required for the oil and gas sector.

More than 70 Kazakh engineering companies and over 30 foreign manufacturers as well as the representatives of the Ministry of Energy of the RK, the Ministry of Investments and Development of the RK attended the forum.

The forum’s organizers presented the overview of the projects of Karachaganak, North-Caspian and Tengiz fields and made the participants aware of the needs on priority categories of commodities both in the short-term and in the long-term prospects. The suppliers were also informed on the technical requirements of the operators for standards and specifications of the equipment.

According to Serik Keulimzhayev, Managing Director for business support of JSC NC “KazMunayGas” , the current event is an efficient platform for discussion of new investment opportunities, issues of production design, business expansion, networking with all the market representatives both of the state and of the large and medium business.

The Organizers of the event hope that this forum will stimulate the attraction of foreign and internal investments, transfer of new technologies and will give new impulse for the Kazakhstan content development in oil and gas industry of the Republic of Kazakhstan.

Following the results of the forum, the following Memorandums of Understanding and intentions have been signed:

1. Between the European Bank of Reconstruction and Development and Tengizchevroil LLP

2. Between “KazTurboRemont” Service Center” LLP and Magnatek

3. Between Wood Group, KING and KazStroyService

4. Between STAMKOM and Bolt&Nut manufacturing Limited (UK)

About the organizers

“KAZENERGY” Association

Was established in 2005 and unites 50 legal entities enabling the dialogue between the energy companies, state authorities and society

JSC NC “KazMunayGas”

JSC NC “KazMunayGas” – Kazakhstan operator on exploration, production, refining and transportation of hydrocarbons, representing the interests of the state and oil and gas sector of Kazakhstan. 90 percent of KMG shares belongs to “Samruk-Kazyna” National Welfare Fund” JSC, 10 percent of shares – to the National Bank of the Republic of Kazakhstan.

Karachaganak Petroleum Operating BV

The partners of Karachaganak Petroleum Operating BV are the companies: BG Group (29.25 percent), Eni (29.25 percent), Chevron (18 percent), LUKOIL (13.5 percent) and KazMunayGas (10 percent). In 1997 the partners of the joint venture and the Authorized body representing the Government of the Republic of Kazakhstan founded the company to develop the Karachaganak field. The Final Production Sharing Agreement (FPSA) defining the terms of the joint development of Karachaganak till 2038 was signed.

North Caspian Operating Company NV

“North Caspian Operating Company NV” operates on behalf of seven participants of the consortium as an Operator for evaluation and development of hydrocarbon reserves at eleven offshore blocks within the changed and amended North Caspian Production Sharing Agreement dated November 18, 1997. The consortium participants have the following shares: KMG – 16.88%, Eni – 16.81%, ExxonMobil - 16.81%, Shell - 16.81%, Total - 16.81%, CNPC – 8.33%, INPEX - 7.56%.

Tengizchevroil, LLP

“Tengizchevroil” LLP carries out development, production and marketing of crude oil, gas and sulfur. All the works on health safety and environment protection are carried out in accordance with the international requirements. “Tengizchevroil” LLP was established in 1993 on the basis of the agreement concluded between the Republic of Kazakhstan and Chevron corporation. Currently the partners of Tengizchevroi,l LLP are: “Chevron” corporation - 50%, JSC NC “KazMunayGas”– 20%, ExxonMobil Kazakhstan Ventures Inc. - 25% and LukArco B.V. - 5%.