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

Three largest oil production projects should guarantee Kazakhstani producers orders worth over $20 billion

The oilfield services market of Kazakhstan can provide Kazakhstani producers with orders in excess of $20 billion in the coming years, the country's energy minister Kanat Bozumbayev said on November 19.

“The oilfield services sector will develop at a good pace in the country in the coming years, this is primarily due to the ongoing implementation of the project for the expansion of the Tengiz field,” Bozumbayev told after the government meeting.

He recalled that more than $37 billion was invested in this project, while there is an agreement that the share of local content in goods, works and services for this project should be at least 32%.

“This means that more than 60% will be content for oil companies, and we are working very closely with TCO on this issue. I think that if out of $37 billion, $13-15 billion will flow into the economy, this will be a very good help for the economy of our country in the next two years,” the minister said.

In addition, agreements were signed with shareholders of the Karachaganak field development project, where a large investment project is being implemented that will keep the level of condensate production at the current level.

“In general, there are three projects to be implemented for $5 billion of investments, we also assume that Kazakhstan’s oilfield services companies should master at least 50%,” the energy minister stressed.

Also, in 2019, the shareholders of the Kashagan field development project must decide how they will go to the next production level.

“In 2019, we assume that the relevant investment projects for Kashagan will also be approved and adopted, there are also opportunities for our oilfield service companies,” Bozumbayev said.

At the same time, Lukoil and Eni companies may soon provide Kazakhstani oilfield services on two projects in the Caspian Sea.

“Eni is preparing a proposal for one of the offshore projects on the Isatai block, they are even looking for a drilling company, the First Vice President has come, I spoke with him the other day. That is, the revival in the oilfield services sector is guaranteed starting next year already,” the minister concluded.

By Dmitry Pokidaev for Kursiv (Kazakhstan).

Source

  • Created on .