Kazakhstan to Step Up Localization in Major Oil and Gas Projects

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Arman Korzhumbayev Editor-in-Chief

Localization in the oil and gas sector will be strengthened. Kazakhstan plans to expand the participation of domestic manufacturers in major projects and increase the range of goods and services that can be produced locally, DKNews.kz reports.

These priorities were outlined at an event marking the fifth anniversary of the International Center for Oil and Gas Machine Building Development (IMBC). Together with the Ministry of Energy and major oil and gas companies, the Center has been working to increase the involvement of Kazakh businesses in operators’ procurement.

Пять лет сотрудничества: IMBC отмечает вклад специалистов в развитие местного содержания

Local Manufacturers Have Moved Closer to Major Operators Over Five Years

One of IMBC’s key objectives is to connect the needs of major oil and gas projects with the capabilities of Kazakh enterprises.

Over the past five years, the Ministry of Energy, the Center and oil and gas companies have carried out systematic work aimed at expanding the participation of domestic manufacturers in operators’ procurement and promoting production localization.

For Kazakh enterprises, the practical value of this work lies in gaining access to major oil and gas projects. For such access to become meaningful rather than formal, companies need direct interaction with operators, a clear understanding of their requirements and the ability to manufacture the necessary products in Kazakhstan.

Next Priority Is to Expand the List of Localized Goods

The fifth anniversary of IMBC also highlighted priorities for the next stage.

Future work will focus on increasing the share of local content, expanding the range of goods and services to be localized, developing Kazakhstan’s oil and gas machine-building industry and creating new opportunities for domestic manufacturers.

This signals a gradual shift from simply involving local businesses in projects toward deeper production localization. The more equipment and related products that can be manufactured in Kazakhstan, the broader the potential base of local suppliers for major projects.

At the same time, no new specific local-content targets, detailed product lists or deadlines for achieving the next objectives were announced at the event.

Kairkhan Tutkyshbayev Recognized IMBC and Operator Specialists

A separate part of the event was dedicated to professionals who work directly with local manufacturers and major oil and gas companies.

Kazakhstan’s Vice Minister of Energy Kairkhan Tutkyshbayev presented Certificates of Honor to employees of IMBC and major oil and gas operators for their professional contribution to the development of local content.

“The results achieved are, first and foremost, the merit of the people who work every day to develop local content, engage with operators and domestic manufacturers, and find practical solutions to expand the participation of Kazakh businesses in oil and gas projects,” the Vice Minister said.

The awards were presented to specialists involved in cooperation with operators and manufacturers, as well as in implementing production localization initiatives.

Kazakh Businesses Expected to Gain More Space in Oil and Gas Procurement

IMBC’s fifth anniversary showed the direction in which local-content policy is developing: the government and the industry intend to continue integrating Kazakh manufacturers into the supply chains of major oil and gas projects.

For businesses, two areas are particularly significant — expanding the range of products that can be manufactured domestically and establishing direct working relationships with major customers.

Earlier, we wrote about Kazakhstan’s move toward deeper localization in the oil and gas sector and the objectives set for major operators.

The next stage has now been defined more clearly: increase the share of local content and expand the range of goods and services that Kazakh enterprises can localize for the oil and gas industry.

DKNews International News Agency is registered with the Ministry of Culture and Information of the Republic of Kazakhstan. Registration certificate No. 10484-AA issued on January 20, 2010.

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