Kazakhstan will participate in the expansion of the Karashyganak oil and gas field
Kazakhstan will participate in the expansion of the Karashyganak oil and gas field. This was announced by the Director General of the Union of Oilfield Service Companies of Kazakhstan. 10 leading foreign corporations have expressed a desire to participate in the major projects of Karachaganak and Tengiz oil fields. An obligatory condition for them will be the joint work with the local companies. The new Code on Subsoil Use sets new procurement rules for contracting companies. These concern large operators like Kashagan, Tengiz and Karashyganak. According to experts, this will contribute to the development of domestic oilfield services.
NURLAN ZHUMAGULOV, HEAD, KAZAKH UNION OF OILFIELD SERVICE COMPANIES:
- Previously, a new investor was required to have local content in their services and works in the amount of 70-80%. Almost all investors met the requirement. There are a lot of types of works and services that are provided by transport companies and monopoly institutions. Now the responsible authority has a mechanism to set the size of the local content at a rate of at least 50% in certain segments, like design or geophysics.
There are more than a thousand companies in the oilfield service sector of Kazakhstan. The share of the domestic businesses is about 50%. The new legislative changes will help increase the share of the local content.