TCO presented a new approach to working with contractors

29 November 2023

Tengizchevroil LLP (TCO) held a forum for over 60 local companies specializing in maintenance and operations to provide them with detailed information about TCO’s technical requirements for tenders and its updated strategy for determining scope of works. Thus, TCO involves Kazakhstani companies in participating in procurement and guides them, providing recommendations on opportunities for further growth.

TCO is shifting from a dynamic period of intensive capital projects to expand production and processing capacities, which allowed the company to secure a leading position in global oil markets for over 30 years. Now, TCO is moving from investment in large-scale projects to a higher focus on efficient, integrated base business production. According to Jerrod Hunt, Manager of TCO Maintenance Department, over the years, the TCO organization has gained tremendous experience and knowledge in the execution of major turnarounds which will be highly valuable for following maintenance projects.

- In order to ensure a more efficient and economically mutually beneficial partnership with contractors, we need to update the principles for determining the scopes of work and interface with contractors. I am confident that future potential local suppliers will help us in this important process, - noted Jerrod Hunt.

During the forum, TCO Production Operations Manager Greg Gabel spoke about turnaround activities at Tengiz field, which are crucial for ensuring production safety and reliable production.

- Critical equipment, which was replaced as part of the 2023 Turnaround, was manufactured in Atyrau and Aktau. This demonstrates that industrial expertise is developing in Kazakhstan, and TCO will continue to create opportunities for development of Kazakhstani content in accordance with TCO standards for safety, quality, and economic efficiency,- highlighted Greg Gabel.

Over the past three decades, TCO Business Partners throughout Kazakhstan have developed their capacities and progressed, so TCO expects that in the future local businesses will demonstrate high quality work and a strong safety culture, as well as cost management skills and innovative business solutions. Representative of the TCO’s Kazakhstani content development department informed the forum participants about the results of the work as well as information about the tender procedures.

- We would like to attract highly qualified and competitive local companies to participate in the tender, which will be able to effectively support and improve our new scopes and services,- noted Olzhas Lukmanov, Head of TCO’s Kazakhstan content development department.

The forum proved to be a platform where opportunities, requirements and strategic vision were discussed with potential bidders to facilitate the selection of business partners who share TCO’s commitment to safety, excellence and innovation.

Since 1993, TCO has purchased goods and services from Kazakhstani suppliers’ worth over $46.8 billion. According to the research by S&P Global, every dollar spent by TCO on Kazakhstan suppliers simulates just over one additional dollar of GDP for Kazakhstan’s economy.