An exhibition of Kazakhstani manufacturers was held at the forum venue

Contracts worth $440 million were signed at the Oil and Gas Machinery Forum

Chairman of the Mazhilis Yerlan Koshanov spoke at the Forum on the Development of Oil and Gas Engineering in Aktau, organized by the Ministry of Energy in conjunction with the Mazhilis of Parliament. The event was attended by representatives of government agencies, the business community, the national company KazMunayGas, industry associations and development institutions, as well as domestic and foreign oil and gas engineering companies, reports Azattyq Rýhy, citing the press service of the Mazhilis of the Republic of Kazakhstan.

In his opening remarks, the Chairman of the Mazhilis noted that over the years of independence, Kazakhstan has become one of the leading countries in the global oil market. Thanks to the implementation of major oil and gas projects involving leading foreign companies, thousands of highly qualified engineers and technical specialists have been trained, and the most advanced technologies have been mastered. Today, we not only produce but also actively process oil and gas. Three oil refineries are operating in the country, and the petrochemical industry is growing rapidly.

Kazakhstan now faces a new strategic challenge: to move away from dependence on raw materials by transforming our economy into a producer and exporter of high-quality goods. The oil and gas sector must play a special role in this. The Speaker of the Mazhilis emphasized that this forum is aimed at developing joint solutions to achieve this goal with the participation of all stakeholders.

“As I mentioned earlier, we face the task of transforming Kazakhstan into an industrial leader. This issue is under the special supervision of the Head of State. Parliament will continue to provide comprehensive legislative support for this course. If the state develops effective policies and enterprises strive to make their products competitive in accordance with international standards, new jobs will be created, Kazakhstan’s economic independence will be strengthened, and the well-being of our people will improve,” said Yerlan Koshanov.

The work being done is yielding results. According to the Ministry of Energy, agreements totaling $440 million are expected to be signed during the forum.

Speaking about the current situation in general, the Speaker of the Mazhilis emphasized that, based on last year’s results, the total value of goods and services procured by subsoil users in the energy sector alone exceeded 6 trillion tenge. Of this amount, 62% was accounted for by three major companies — Tengizchevroil, KPO, and NCOC. There has been an increase in the share of domestic producers, which is the result of joint efforts by Parliament and the Government.

“In this regard, members of the Mazhilis and the Ministry of Energy have been conducting systematic work for two years. During this time, contracts totaling approximately $900 million have been signed with the three largest companies. There have been tangible results—partial changes have been made to tender procedures, and the conclusion of long-term contracts has been recognized as a priority. But there is still great potential here, and we must continue our joint efforts,” noted the Chairman of the Mazhilis.

In his view, a number of targeted measures must be taken to further expand the oil and gas machinery manufacturing sector. First, procurement procedures for domestic manufacturers should be simplified, and more long-term agreements—such as and off-take contracts—should be concluded. Second, domestic oil and gas machinery manufacturers should be encouraged to produce complex equipment. Third, facilitate the transition of major oil companies to Kazakhstani goods and services in the food sector. Here, our country can substantially meet all existing needs, including through the “Auyl Amanaty” project. The Karachaganak operator already has positive experience in this area.

Speaking about the state’s comprehensive support for the oil and gas industry, the Speaker of the Mazhilis discussed new amendments to the Code “On Subsurface Resources and Subsurface Use.” Now, major subsoil users are required to give priority to domestic specialists. Additionally, the definition of the domestic value share in capital projects has been approved, and requirements for the minimum domestic content share in off-take contracts have been tightened. A separate law has established the Unified Register of Domestic Producers, which will become operational at the start of next year.

Erlan Koshanov also noted that during the previous session, the Mazhilis Committee on Ecology and Natural Resource Use carried out extensive and systematic work to increase the domestic content share. Reports from major operators in the oil and gas industry were heard, and based on their findings, special protocols were drafted and specific indicators for growth were defined. The results of their implementation will be regularly reviewed by deputies.

The event also featured remarks by Nurdaulet Kilybay, Governor of the Mangistau Region; Kudaibergen Arymbek, Deputy Minister of Energy; and Askhat Khasenov, Chairman of the Board of JSC NC “KazMunayGas” , Ruy Giancarlo, Managing Director of Nord Caspian Operating, Marco Marsili, CEO of Karashyganak Petroleum Operating B.V., William Lacobi, CEO of Tengizchevroil LLP, and others.

An exhibition of Kazakhstani manufacturers was held at the forum venue. Forty-five companies presented their products, including metal structures, pipes, pumps, petrochemical and chemical equipment, and much more.

As part of their working trip to the region, the deputies also visited the Mangistau Nuclear Power Plant and the company “KazAzot.” Earlier, they had familiarized themselves with the construction of the new oil equipment manufacturing plant “Kaskor-Mashzavod” in Zhanaozen, and also inspected construction work on the water treatment plant in the village of Zhetibay.