Thirteen domestic manufacturers became new suppliers to TCO

15 May 2024

With a view to increasing the in-country value and the local content share in the major oil and gas projects of Kazakhstan, a number of commercial agreements have been signed in Astana by Tengizchevroil LLP (TCO) with local enterprises. The event was participated by representatives of the Ministry of Energy of the Republic of Kazakhstan (RoK), the “International Centre for Development of Oil and Gas Machine Building” (IMBC) Association, as well as Mazhylys of the Parliament of the RoK deputies.

TCO has signed contracts with 13 local producers and service providers, covering a variety of local products and services that TCO requires for its operations in Tengiz. Some of the notable items in the agreements include locally produced pressure transmitters from Emerson Kazakhstan, gaskets from Novus Sealing, New Boiler House (NHB) migration from Honeywell Kazakhstan, sulphur remelt tank and Pipes, Flanges and Fittings (PFF) materials from AtyrauNefteMash, spectacle blinds from IPSS Caspian, process filters from Asia Filters, welding blankets from Newtech Systems Group, stud bolts and nuts from Studbolt Manufacturing, substations from Alageum LLP, cable trays from Centech, Remote Instrument Enclosure from PSI Group, as well as Civil/Infrastructure and Electrical /Instrumentation construction works provided by Gradex and Civil/Infrastructure construction works from UnixStroy.

“Tengiz is a complex field, and in order to ensure safe operations, we set high expectations for ourselves and our suppliers, said Konilkosh Suyessinov, TCO Deputy General Director. “We will continue our cooperation, thanks to which the overall level of Kazakhstani content in goods and services purchased by TCO reached 70% in 2023, up from 11% in 1993.”

The constant development of the Kazakhstani market of goods meeting high international standards is a cornerstone of TCO’s development strategy and brings significant benefits to the economy of Kazakhstan. The company has a system for stimulating localization of production, which includes preliminary planning of Kazakhstani Content in future purchases of goods, obligations of new suppliers to localize production, personnel training, and consistent monitoring of purchases of domestic goods. Thanks to these efforts, in 2023 alone, TCO purchased goods, works and services from Kazakhstani companies worth $4 billion. Of goods, a large proportion of purchases are for construction materials, safety equipment, diesel fuel, chemicals, containers and packaging materials etc. In total, since 1993, TCO has purchased goods and services from Kazakhstani suppliers in amount of over $48 billion.