Tengizchevroil publishes Procurement Plan for 2020
After the long work of the Council on strategic partnership development of the Atameken NCE RK - Petrocouncil, within the framework of promoting the Kazakh product, Tengizchevroil (TCO) has published its Procurement Plan for 2020 for the first time in 26 years of its operations in Kazakhstan.
The document doesn't contain all types of products, works, and services, purchased by the company, although it shows domestic enterprizes which types of products, works and services will be in demand for the biggest oil and gas operator.
Thanks to the efforts of the Procurement Department and Department on local business development, TCO Tengizchevroil has made an important breakthrough towards transparency and fair market development. According to the company's statement: "As part of its ongoing efforts to develop the local production and comply with the legislation of the Republic of Kazakhstan, TCO is publishing its plan for contracting and purchasing goods and services to support its exploration and production activities in the Republic of Kazakhstan. The published contracting and procurement plan reflects TCO's possible needs in the supply of goods and services to support its various areas of operations”.
You can review the Procurement Plan at http://www.tengizchevroil.com/localcontent. Earlier, NCOC and Karachaganak Petroleum Operating B.V. also published procurement plans, thus opening access of domestic business to information about development prospects. All procurement plans can be found on the website – https://petrocouncil.kz/.
Annually, the average volume of procurement of products, works, and services of the oil and gas industry amounts to KZT 4.5 trillion, more than KZT 3 trillion falls on three major operators. At the same time, the level of Kazakh content is about 40%, and the procurement of goods accounts for less than 20%. The remaining 80% is a missed opportunity for Kazakh people to get jobs and profit if they establish own production facilities. Only three operators have a need for such commodities as batteries, gate valves, cable-conductor products, valves, actuators, pressure vessels, heat exchangers, fittings and flanges, analyzers, gate valves, compressors, and other spare parts manufactured in Kazakhstan for more than $1.1 billion (KZT 545 billion).
It should be noted that there are 2.1 million "self-employed" entrepreneurs in Kazakhstan, 1.4 million of them, according to the Ministry of Labour and Social Protection of Kazakhstan, are 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 production facilities for the oil and gas industry would provide these entrepreneurs with jobs and new competences.
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