Tenzgizchevroil publishes procurement plan for 2020 for the first time


After the long work of the Council for the Development of Strategic Partnerships of the Atameken NCE, Petrocouncil, in the framework of the development of Kazakhstani content, Tenzgizchevroil published a procurement plan for 2020 for the first time in 26 years of work in Kazakhstan.

The document does not reflect all types of goods, works and services purchased by the company, but it gives an idea to domestic entrepreneurs about what types of goods, works and services will be necessary for the largest oil and gas operator. This was reported on the website of the Atameken NCE. Thanks to the efforts of the procurement and local business development departments, Tengizchevroil has made an important breakthrough on the path to transparency and equitable market development.

The message by the company said:

As part of its ongoing work to comply with the provisions of the legislation of Kazakhstan regarding the development of local content, TCO publishes its plan for concluding contracts and procurements for the purchase of goods and services to support its exploration and production activities in Kazakhstan. The published contract and procurement plan reflects TCO’s potential needs for the supply of goods and services to support various areas of its production and business activities.

Earlier, NCOC and KPO also published procurement plans, thereby opening up access to domestic business to information on development prospects. The average volume of purchases of oil and gas industry is 4.5 trillion tenge, more than 3 trillion falls on three large operators. The level of Kazakhstani content is about 40%, and less than 20% in the procurement of goods.

The remaining 80% is a missed opportunity for Kazakhstanis to get work and profit if their own industries were created. Three operators have need for goods like accumulators, gate valves, cable and wire products, valves, actuators, pressure vessels, heat exchangers, fittings and flanges, analysers, gate valves, compressors and other spare parts manufactured in Kazakhstan, worth more than 1.1 billion US dollar or 545 billion tenge.

In Kazakhstan, there are 2.1 million self-employed entrepreneurs, 1.4 million of which are the so-called informally employed. These people do not report on their work, do not pay taxes and do not make contributions to social funds, that is, they are practically unemployed. The creation of new industries for the oil and gas industry would provide these entrepreneurs with work and new competencies.

Reported by In Business (Kazakhstan).