Kazakh producers to join Tengiz Future Growth Project
By Aynur Jafarova
Kazakh producers will join the Future Growth Project at the Tengiz field as local partners.
The news was announced by the Trend Agency which quoted Deputy
Oil and Gas Minister Magzum Mirzagaliyev as saying.
"The Future Growth Project at Tengiz offers a number of
opportunities for domestic enterprises. This means it becomes
possible to join large projects as a local partner of
Tengizchevroil LLP," Mirzagaliyev said.
The deputy minister pointed out that a Memorandum of Understanding
(MoU) was signed between the Kazakh government and Tengizchevroil
LLP in 2013.
One of the key points of the document is the operator's
recommendation to foreign contractors on the localization of
production and creation of joint ventures with Kazakh partners.
Under the MoU, work will be conducted with foreign companies to
establish joint ventures with Kazakh contractors for the production
of modular structures for the Future Growth Project and the
maintenance of equipment in the long term, Mirzagaliyev noted.
"Negotiations have already begun between Teniz Burgylau LLP and the
U.S. Neighbors Drilling company. Two Design Institutes of
Kazakhstan - KING and KGNT- have already been included in the KPJV
joint enterprise, and are successfully cooperating with the Fluor
and WorleyParsons companies," the deputy minister said.
Mirzagaliyev went on to say that at least one project will be
implemented under the State Program of Forced Industrial-Innovative
Development on the modernizing and increasing the capacity of
domestic industrial suppliers.
The deputy minister also noted that the Oil and Gas Ministry is
discussing the details of joint works within an expert group with
Tengizchevroil.
"The whole project was divided into seven specific areas. These are
the manufacturing of modules, construction, logistics, drilling,
equipment and materials, design and management, and commissioning
work," Mirzagaliyev said.
The cost of the Future Growth Project at Tengiz field is estimated
at $24 billion. At least $7.7 billion to $10.5 billion of this
amount is planned to be spent on the procurement of goods, work,
and services from local producers.
The Tengiz oil field is one of the deepest and largest oil fields in the world. The reserves of the deposit are estimated at 750 million to 1.1 billion tons (6-9 billion barrels) of recoverable oil.
The expansion of the Tengiz field is expected to boost crude production to around 0.8 million bpd by 2019, compared to less than 0.55 million bpd last year.
Karachaganak field's Future Growth Project estimated at $15-20 bln
Touching on the Future Growth Project at the Karachaganak field, the deputy minister said the cost of the project is estimated at $15-20 billion.
"The cost of the first stage, the implementation of which is
planned to start in 2017, is estimated at $5 billion," he said.
The project opens significant opportunities for Kazakh producers,
Mirzagaliyev noted.
"The participation of the largest Kazakh companies and
professional associations will be required during the
implementation of this project. So, part of the work on design and
construction volumes should be carried out by Kazakh
organizations," the deputy minister said.
Mirzagaliyev also noted that the business opportunities of the
Kazakh market are currently being studied for local businesses
within this project.
"A forum of service and engineering companies, which will present
detailed information about what work and services are required for
Kazakh companies, will be held in April in Uralsk," he
stressed.
Mirzagaliyev also said, work on the establishment of the Aksai
industrial park, designed to provide Karachaganak Petroleum
Operating Company with world-standard services and the products of
local manufacturers and suppliers, is currently underway.
Karachaganak is one of the world's largest fields. Its oil reserves amount to 1.2 billion tons, while its natural gas reserves are 1.35 trillion cubic meters.