Kazakhstan seeks to up local content in energy projects
Kazakhstan plans to increase the share of domestic participation with operators of the "Kashagan" and "Karachaganak" development projects.
The Kazakh Industry and New Technologies Ministry reported that with a view to develop local content in the framework of the production sharing agreement it is necessary to apply the method by analogy with the work carried out to increase the proportion of local content in the project for future decision "Tengizshevroil" Limited Partnership, i.e. ensure the conclusion of memoranda of understanding and cooperation in major projects in the oil and gas sector ("North Caspian Operating Company" - "Kashagan" and "Karachaganak Petroleum Operating BV").
It is also necessary to provide commitment on the increase of the share of local content, transfer of experience to the Kazakh contractors and suppliers, encourage creation of joint ventures with Kazakh companies and also increase of the qualification and employment of Kazakh workers, the ministry said.
A memorandum of understanding and cooperation was signed in November 2013 between Kazakhstan and "Tengizshevroil" which provides commitments to increase the proportion of domestic participation in the project from 32 to 44 percent.
Under the memorandum an expert group was set up, whose main objective is to achieve a share of local content in the project of future expansion of "Tengizshevroil".