Tengizchevroil (TCO) is well regarded as a reliable partner through its significant social and economic contribution in the Republic of Kazakhstan. Integral to TCO’s achievements, are its efforts and focus on supporting local suppliers, through the provision of necessary information about company’s operations and technical needs through the official website. Last year, a procurement plan for 2020 was published, and today we are pleased to provide an update on our procurement activities and needs for 2021.
In TCO we believe that sustainable local companies actively participating in development of oil and gas industry benefit the national economy, society, and the country as a whole. TCO strives to develop and maintain strong business relationships with customer-oriented suppliers who have strong safety culture, smooth production, cost management skills, and offer quality products and services, competitive prices, and innovative business solutions.
Establishing and maintaining productive cooperation with local suppliers is vital for success. TCO has successfully signed contracts with thousands of qualified companies in Kazakhstan for over 25 years. Due to this, since 1993, TCO has purchased $35.7 billion of local goods and services. In 2019 alone, TCO purchased over $4.6 billion worth of goods and services from Kazakhstani suppliers, including over $3.25 billion under FGP-WPMP.
Our company has been at the forefront of fostering KC partnerships and knowledge transfer between Kazakhstani and international companies, especially for FGP-WPMP. TCO regularly arrange forums and B2B meetings with the representatives of the local business community to find partnership opportunities in various sectors. A great example of this is the Supplier Development Program by European Bank for Reconstruction and Development (EBRD), funded by TCO. In 2019, 73% of companies in this program increased their income by 66%, and the number of employees increased by 32%.
The oil and gas industry offers tremendous opportunities for local companies to build world class organizations that can also compete successfully on global markets. Tengizchevroil works to improve success of local companies and appreciates desire of domestic suppliers to meet high standards of safety and quality. TCO plans to continue to work actively and transparently with Kazakhstani suppliers of goods, works and services in the future.