2nd Kazakh-British Oil and Gas Forum held in Astana

ASTANA. March 29. KAZINFORM Astana hosted the second Kazakh-British Forum on partnership development among suppliers in the oil and gas industry service sector on March 27. About 80 Kazakhstan and British companies attended the event, including Fluor, Amec, Wood Group PCN, SNCLavalin as well as representatives of the Kazakhstan Oil and Gas Institute.

The Ministry of Industry and New Technologies of Kazakhstan, the National Agency for Development of Local Content (NADLoC), the UK Trade & Investment (UKTI), Shell, and BG Kazakhstan jointly organized the forum. The event was aimed at assisting local producers in establishing cooperation, exchanging experience, widening and creating new industries in Kazakhstan.

Speakers at the forum included Deputy Minister of Industry and New Technologies Nurlan Sauranbayev, NADLoC Director Serik Kameli, Chairman of the Board of the NADLoC Dauren Abdykhamitov, British Ambassador to Kazakhstan David Moran, General Manager of Shell Kazakhstan Campbell Keir, and Chair of Joint Procurement Committee of BG Kazakhstan Neil Cathmoir, the Kazakh MFA's press service said.

Around 80 British companies showed their readiness to search for new partners among Kazakhstan's producers and offer their technologies and resources in the areas such as geological field modeling, project management and technical engineering services, modular constructions manufacturing, equipment, spare parts and accessory equipment production and assembly. The possibility of supply and maintenance to meet the needs of future projects on the territory of Kazakhstan were discussed as well.

Abdykhamitov reported at the forum that in 2011 total procurement of goods and services throughout Kazakhstan amounted to US$ 54 billion. Purchases from domestic suppliers exceeded US$ 26 billion. "It's about 48.7% of the total, while the share of local content in goods constituted 26.5%. As for the oil and gas sector, the share of Kazakhstan's goods is only 9% of the total purchases of materials and equipment. Therefore, we consider the oil and gas sector as the most promising in terms of developing new products that are lacking in the domestic market," the head of the NADLoC concluded.

On the sidelines of the forum, Abdykhamitov told journalists that the NADLoC intends to reimburse 50% of international certification costs to Kazakhstan producers that need the certificates to work with large oil and gas projects, such as Kashagan and Karachaganak. "The certification process doesn't cost little, therefore very few companies can afford it," he said. According to him, a draft government resolution on reimbursement has been submitted to the Government, and about 170 million tenge has been built into the national budget for this purpose.

As Shell Kazakhstan head Campbell Keir said at the Forum, the third Kazakh-British Forum on partnership development among suppliers in the oil and gas industry service sector will be held in the Kazakh city of Atyrau in late 2012.

The first Kazakh-British Forum was held in Aberdeen, in Scotland, in September 2011. About a hundred British companies and 23 companies from Kazakhstan attended that forum. The Kazakh delegation included the heads of Kazakhstan's leading companies in the service sector of oil and gas industry. Deputy Minister of Industry and New Technologies of Kazakhstan Nurlan Sauranbayev and chairman of the National agency for the Development of Local Content NADLoC Dauren Abdykhamitov led the delegation.



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