TCO discussed working with local suppliers and procurement of Kazakhstani goods, works, and services (GWS) at the annual "Kazneftegazservice – 2025: Oil and Gas Construction and Engineering" conference held in Atyrau. The conference was attended by around 300 participants, including representatives from 150 Kazakhstani companies as well as foreign firms from Qatar, the UAE, and Russia.
TCO Deputy General Director Konilkosh Suesinov emphasized the importance of open dialogue with business partners and highlighted TCO’s contribution to Kazakhstan’s economic development. In his speech, he spoke about TCO’s significant investments in the local market. In 2024, payments to Kazakhstan exceeded $11 billion, while expenditures on Kazakhstani GWS surpassed $3 billion.
“One of TCO’s key focus areas is supporting Kazakhstani manufacturers. In 2024, the company, in collaboration with the Ministry of Energy, developed a strategy to enhance local content, aimed at improving support mechanisms for local producers, introducing price tolerance in tenders, and conducting tenders exclusively among domestic companies if three or more local producers are available,” said Konilkosh Suesinov.
During the forum, Rafael Alaña, TCO’s Strategic Sourcing Contracts Manager, presented TCO’s 2025 annual contracts and procurement plan, outlining the company’s anticipated GWS needs. He provided detailed insights into TCO’s tendering process, which includes mechanisms to support Kazakhstani manufacturers, the implementation of "KC Tolerance" (price preference), and the introduction of non-standard contract mechanisms such as off-take agreements, early tenders, and long-term contracts in exchange for investments.
“One of the key changes in our policy is the introduction of a ‘local tenders only’ approach for certain product categories, which will help increase Kazakhstani content. We also implement a trial order system to assess the compliance of local manufacturers’ products with TCO requirements. In addition, the company is actively incorporating Key Performance Indicators (KPIs) into long-term contracts to encourage contractors to enhance localization,” emphasized Rafael Alaña.
He also discussed the simplification of financial qualification criteria for local suppliers and the introduction of contract mechanisms with mandatory localization commitments. These measures open new opportunities for domestic producers and lower barriers to entry into TCO’s supply chain.
Tengizchevroil remains committed to sustainable development principles and aims to make a significant contribution to Kazakhstan’s economy. In 2024, the share of Kazakhstani content in GWS reached approximately 70%.
