05.08.2021
KPO HELD LOCAL CONTENT FORUM UNDER Phase 1A OF THE KARACHAGANAK EXPANSION PROJECT
NUR-SULTAN, Republic of Kazakhstan, 5 August 2021 - Karachaganak Petroleum Operating B.V. (KPO) organized an online forum on local content (LC) development which was held with the support and participation of the Ministry of Energy of the Republic of Kazakhstan, WKO Akimat and the Authority - PSA LLC. The purpose of the forum was to familiarize Kazakhstani companies with the Karachaganak Expansion Project Stage-1A (5ICP), with the project strategy and requirements for local content, as well as to familiarize engineering, procurement and construction (EPC) contractors with EPC scope of work, potential opportunities in GWS and EPC contractor requirements for local companies.
In his welcoming speech to the Forum participants Minister of Energy Nurlan Nogayev said: ‘KPO is undertaking a series of plateau maintenance projects with successful completion of Karachaganak Gas Debottlenecking Project (KGDBN) and 4th Injection Compressor Project nearing completion.’
‘Karachaganak Expansion project is thought to offer opportunities for Kazakh businesses to acquire valuable experience by way of working for the complex fields, enabling transfer of advanced technologies and knowledge to the country, creating a network of support companies in Kazakhstan to meet internal requirements of, and provide service to both Operators of the projects and other petroleum companies of the region,’ stressed Nurlan Nogayev.
The forum was attended by representatives of more than 100 local companies experienced in oil and gas equipment manufacturing and industrial construction, top management of Ministry of Energy of the Republic of Kazakhstan, Ministry of Industry and Infrastructure Development, WKO Akimat, top management of the Authority - PSA LLP, KazService Association, Association of Kazakhstan Machinery Industry, Petrocouncil, International Machinery Development Centre.
KPO General Director Mr. Giancarlo Ruiu thanked the forum participants for their participation in the forum, spoke about KPO performance indicators and emphasized that sanctioning of KEP1A (5ICP) project was one of the key stages of the Karachaganak field development. Implementation of this project will be a logical extension of the work carried out under the current KPC Gas Debottlenecking Project (KGDBN) and the 4th Injection Compressor Project.
KEP1A which includes the construction of the 5th Injection Compressor Project and other related facilities, is aimed at liquid hydrocarbons production plateau extension, which, in turn, will allow gaining extra profit for the Republic of Kazakhstan and the partners of the Karachaganak project. New jobs for the citizens of the country will be created as part of the project. Another KPO’s priority during the project implementation will be the maximum increase in local content - added Mr. Giancarlo Ruiu.
Based on the results of the six months of this year, the share of local content in KPO costs under contracts for procurement of GWS exceeded 72% or more than 296.6 million US dollars in monetary terms.
During Q&A session, KPO representatives answered the forum participants’ questions regarding the KEP-1A anticipated demands in GWS. The topics discussed were as follows: strategy of this project in terms of execution and local content increase, KPO Contracts and Procurement department’s activity, opportunities and requirements for local companies, further interaction with EPC contractor, etc.
In turn, the Forum delegates noted the excellent organization of the event and its efficiency. According to the delegates, having a large number of subject matter experts as participants allowed for a thorough discussion and analysis of the issues on the agenda.
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