Kazakhstan International "Oil & Gas" Exhibition and Conference
30 September - 2 October 2020
Almaty, Kazakhstan

Kashagan consortium to focus on quality

The North Caspian Operating Company NV (NCOC), the operator of the North Caspian project, which is developing the Kashagan giant oil and gas field on the Caspian shelf, awarded prestigious ASME certificates to KazTurboRemont and ZhigerMunaiService. The presence of this certificate demonstrates a high level of technical development of the enterprise and a competitive advantage in attracting contracts on international markets. It includes the full range of standards for the design, testing and production of equipment and pressure vessels, and also allows companies to export their products with a U stamp in more than 100 countries. Thus, thanks to the North Caspian project, two more Kazakhstani companies have joined the list of those who have all the opportunities for successful competition with global brands.

According to the Deputy Managing Director of the NCOC, Zhakyp Marabaev, the receipt of ASME certificates by KazTurboRemont and ZhigerMunaiService proves once again that Kazakhstan has a unique opportunity for business to form new markets, and it makes it possible to profitably use the increased demand from neighbouring countries, related with the development of new financial and logistical ties. This thesis is supported by the words of President Nursultan Nazarbayev, said at the recent Astana Economic Forum Global Challenges Summit, that in the face of new confrontations and confrontations in the world, our country is a guarantor of stability in the region, which allows local businesses to effectively develop. NCOC fully supports measures to strengthen the investment and business climate, undertaken by the government of Kazakhstan. According to the leadership of the consortium, simplification of the procedures for planning projects in the sphere of public-private partnership and attraction of foreign labour, improvement of migration, labour and investment legislation allow companies to take a fresh look at the economy of Kazakhstan and make more efficient use of the unlimited potential that exists in Kazakhstan.

In this regard, Zh. Marabayev expressed his satisfaction with the fact that NCOC is making a significant contribution to this process. For the North Caspian project, marking the 25th anniversary of its work in Kazakhstan this year, the development of local content is one of the priorities. In 2004, the consortium established a local content department that coordinates this work and achieved significant success in this direction.

"NCOC is committed to the implementation of an international project, which maximises the use of local goods, works and services. The President repeatedly stressed the key role of maximising local content in large industrial projects implemented in Kazakhstan. I should note that the consortium is already carrying out extensive work in this direction," he said. “One of the ways to promote the development of the country's economy, which NCOC uses, is to maximise local content in the Republic of Kazakhstan and to create opportunities for local suppliers and personnel of the Kashagan project related to engineering, construction, supply of goods, production operations and maintenance".

The North Caspian Consortium gives preference to local suppliers when concluding service contracts for the development of the Kashagan field, according to Article 20.1 of the Production Sharing Agreement, which was signed between the government of Kazakhstan and shareholders over 20 years ago. This requirement extends to those companies whose services or goods are equivalent in quality to those produced by foreign firms. NCOC has been providing local companies with unique assistance for the implementation of international quality standards ISO, ASME, API for more than 15 years, as well as for training and certification of vocational skills in the National Qualification Framework, etc. This assistance is invaluable for domestic companies. To date, as a result of this support, more than 200 local suppliers of goods and services have been certified according to international standards, more than 2,000 workers of Kazakhstani organisations have completed vocational training in specialties, another 1,000 enterprises participated in various specialised forums and seminars to enhance competencies and establish strong corporate communications, necessary for further effective work.

According to J.Marabaev, the KazTurboRemont company, being one of the contractors of the North Caspian project and performing a full range of services for oil and gas, energy, chemical and mining industries with subsequent service support, is a prime example of successful cooperation with NCOC, including within the framework of the implementation of international quality standards. KTR-Ethos Energy, a joint venture of KazTurboRemont and British Ethos Energy, has a long-term agreement for the maintenance and operation of critical rotating equipment in the offshore and onshore complexes of the Kashagan field. Certification of KazTurboRemont started in 2016, and now, having gone through a difficult way of implementing the ASME standard, this enterprise can be rightfully proud of the achieved results, the Deputy Managing Director of NCOC believes. Highly qualified personnel, production and technical base, system approach, competence and structure of the company allows to offer customers a wide range of services, and in compliance with all the necessary international quality standards.

Another company with a long and successful history of cooperation within the framework of the North Caspian project is ZhigerMunaiService, which has a powerful production capability and is the only certified producer of PDC drill bits in Kazakhstan, 7-1 and 5 PT APIs, thanks to NCOC assistance and ASME, will be able to improve the quality of services in the oil and gas sector on the basis of the best international standards and practices. The company specialises in the production and provision of services for repair and manufacturing of drilling, oilfield equipment, development of oil and gas fields, manufacturing of metal structures and non-standard equipment. According to Rafik Mukhatov, the head of ZhigerMunaiService, thanks to cooperation with the North Caspian Consortium, the company has raised its level, and due to constant training and certification the services of the enterprise are in demand in large international companies.

In general, commenting on the activities of the NCOC, including in the area of further involvement in the development of the Kashagan project of domestic goods and services, Marabaev said: "I am very proud of the tremendous work done by our company team for a year and a half since the start of production, security. Our safety performance indicators meet or even exceed the level of the world average in the industry. With the beginning and optimisation of re-injection of crude gas, further expansion of oil production volumes to 370,000 barrels per day continues. We are confident that the local content development program will bring your company to an even higher level."

By Elena Butyrina for DK News (Kazakhstan).

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