Kazakhstan’s manufacturers to be involved in expansion of Tengiz field

Kazakhstan’s manufacturers will be involved in the expansion of Tengiz field as local partners, said Kazakhstan Vice Minister of Oil and Gas Magzum Mirzagaliyev. “The project of the Tengiz field expansion offers many opportunities to the local companies. Therefore, they have a chance to join big projects as a local partner of Tengizchevroil,” he added. Vice Minister added that the memorandum on mutual understanding was signed between the Kazakhstan government and Tengizchevroil in 2013. The key principle of the document is the operator’s recommendation to the foreign contractors to localize the manufacture and create joint ventures with Kazakhstan’s partners. Mirzagaliyev said that as a part of the memorandum it is planned to work with the foreign companies to create joint ventures with Kazakhstan’s manufacturers to made modular constructions for the future field expansion project and provide services to the equipment on a long-term basis. “The talks between Tengiz Burgylau and US Neighbors Drilling companies are already in progress. Two Kazakhstan’s Project Institutes are already partners of the joint venture KPJV and established a successful cooperation with Fluor and Worley Parsons companies,” he added. Vice Minister said that one project will be implemented as a part of the state program of forced industrial innovative development to upgrade and increase capacities of the local industrial supplier and support will be provided to upgrade the selected enterprises on the basis of Algorithm technological park in Uralsk city. Mirzagaliyev said the Oil Ministry jointly with Tengizchevroil has been discussing details of the joint work as a part of the expert group. “The project has been divided into seven directions (manufacture of modules, construction, logistics, drilling, equipment and materials, design and management and start-and-adjustment works), the volume of works of each direction has been defined, total budget estimated, the possible ratio of local staff has been defined and possibilities of local manufacturers have been evaluated,” he added. Cost of the Tengiz field expansion is estimated at $24 billion, of which between $7.7 and 10.5 billion is planned to be spent for purchase of goods, products and services from the local manufacturers.