At a round table on the localization of Original Equipment Manufacturers (OEMs) in Atyrau, Eimear Bonner, the General Director of Tengizchevroil (TCO), announced a series of localization initiatives related to goods and technology transfer in Kazakhstan. According to Bonner, TCO recently signed joint agreements with major suppliers to localize production of international brands of valves and their after-sales service in Kazakhstan. In addition, two new training and development centers will soon open in Kazakhstan. The agreements were signed as part of TCO’s long-term contracting strategy to develop Kazakhstani content.
“TCO has long-term contracts with international OEMs who provide critical equipment and systems to our company and the oil and gas sector in Kazakhstan. Kazakhstani Content Development plans were established as part of our long-term contracts with these OEMs and today I’m thrilled to announce some of the fantastic results of our efforts,” Bonner said.
As part of an agreement with TCO, Schneider Electric will establish a world-class training center in Atyrau for the provision of technical certification trainings currently not offered in Kazakhstan. The training center is set to open in the fourth quarter of 2019.
In addition, Honeywell Kazakhstan, a world leader in the field of automated process control systems, has agreed to open a new automation center at the Kazakh British Technical University in Almaty. This new center, expected to open in October 2019, will enable Kazakhstanis to gain global skills and experience in the field of automated process control.
Finally, based on additional agreements with TCO, international companies Cameron and MRC will be localizing production of valves in Kazakhstan. Cameron has announced plans to open a center for assembly, repair and maintenance of actuators and orbital valves used by TCO in Tengiz field operations. In addition, MRC which is a valve distributor has committed to facilitating the localization of two internationally recognized valve brands in Kazakhstan.
According to Bonner, TCO has signed approximately 100 Kazakhstani Content Development plans with our long-term suppliers and international OEMs, who commit to nationalization, subcontracting, and investment in Kazakhstan.
TCO adopted its Kazakhstani Content Development plans with its long-term suppliers in 2016 and has already achieved outstanding results. Under one such contract, British company AVON Protection successfully localized production of its hood-type respirators with Kazakh company QHSE Akbarys LLP.
The share of local content in the procurement of goods and services at TCO has grown substantially over its 26-year history. In 1993, total purchases of Kazakhstani goods and services amounted to $27 million. In 2003, this figure exceeded $500 million. Ten years later, in 2013, TCO spent more than $2.3 billion on local goods and services. By comparison, in the first half of 2019 alone, purchases of local goods and services amounted to $2.1 billion. In total, since 1993, TCO has purchased over $30 billion in Kazakhstani goods and services.