TCO continues to increase its expenditure on Kazakhstani goods and services every year. In 2016, TCO spent $1.9 billion on goods and services by domestic producers compared to $415 million in 2002. Since 1993, TCO has invested more than $22 billion in Kazakhstani goods and services. The company will continue to identify methods to increase its purchases of quality goods that meet the extremely challenging operating conditions in Tengiz. TCO’s investments in Kazakhstani Content have primarily focused on purchasing services. This is and will continue to be the area of the most impactful sustainable local content growth.
A key aspect of TCO’s Kazakhstani Content development strategy is working with current and potential suppliers so that they understand the international quality, safety and cost standards they must meet to do business with the oil and gas industry. TCO believes that to achieve its Kazakhstani Content objectives, it must generate long-term opportunities for the suppliers of goods and services. As such, TCO will continue to support the sustainable development of Kazakhstani suppliers, encouraging appropriate investments in infrastructure, Kazakhstani workforce training and the creation of jobs.
During 2016, TCO identified new Kazakhstani manufacturers and visited several regions in Kazakhstan to gain a better understanding of manufacturing capabilities of local companies.
Local content is an integral part of the FGP-WPMP. The Project’s KC target is 32 percent of total project spend. Since 2010, the FGP-WPMP has spent more than $1.6 billion on Kazakhstani Content. To date, more than 1,700 Kazakhstani companies have been pre-screened, and more than 700 Kazakhstani companies have been pre-qualified by the Project to provide services to FGP-WPMP. More opportunities are being tendered during 2017 and 2018.
The Project is creating a legacy of new capabilities in engineering, high-tech equipment servicing, project management, construction and fabrication; and joint ventures between Kazakhstani and international companies for engineering, module fabrication and drilling.