Expert Seminar conducted jointly with the World Petroleum Council

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Wednesday, 26 October 2016 10:44

LOCAL CONTENT DEVELOPMENT AND INTEGRATION PROCESSES

 Expert Workshop (jointly with the World Petroleum Council )

Date: 31 October 2016

Venue: Oval Hall, Independence Palace, Astana, Republic of Kazakhstan

Local content is an indicator of country’s technological and industrial-innovative development representing the share of domestic goods, services and human resources in terms of value used in carrying out operations of companies in the country.  Over the years of independence Kazakhstan has done a great deal for local content development. However, to date the volume of domestic production and procurement of local goods, works and services is insignificant compared to that of the import.

In addition, the region is going through active integration processes.  Kazakhstan is part of the Eurasian Economic Union. In December 2015 the country joined the World Trade Organization. Therefore, maintaining the competitiveness of domestic businesses and further improvement of the state policy in the area of local content are paramount.

Further sustainable development of Kazakhstan’s oil and gas industry will require local businesses to modernize and improve the efficiency of existing production facilities, carry out technology transfer and build competent human resources.  It is necessary to achieve a successful balance between incentives for local content, supply chain, international competitiveness and sustainable development of domestic production and human resources potential in the subsoil use area.  This situation is typical for many countries in the region.

In connection with the above, of special interest is the foreign experience and international cooperation in this area with experts from member countries of the World Petroleum Council (hereinafter - WPC).

WPC is the largest international organization representing interests of the global petroleum community.  One of its basic goals is to build a dialogue between stakeholders to share experience and knowledge, facilitate the provision of expertise and development of recommendations for optimal solutions to the key challenges in the oil and gas industry.

Thus, the expert seminar will focus on analysing the main obstacles and joint drafting recommendations on improvement of the state policy for the local content development.  Implementation of the recommendations developed by the experts will be analyzed by KAZENERGY Association.  All findings, conclusions an proposals on the local content improvement experience under new conditions will be summarized and presented at a special session of the XXII World Petroleum Council to be held in Stambul in 2017.

EXPERT WORKSHOP PROGRAMME

October 31, 2016, Palace of Independence, Astana, Kazakhstan

09.00 – 10.00

 

Registration desk and coffee break

Oval hall, Palace of Independence

 

10.00 – 10.10

 

Opening Remarks

Welcome speech

Dr. József Tóth President, World Petroleum Council

Mr. Jambulat Sarsenov Deputy Chairman, KAZENERGY Association, Special Adviser of the President of the World Petroleum Council

10.10 – 10.50

 

Overview of the local content issues: key challenges –

Kazakhstan’s and international experience

 Protection of domestic producers and the needs of international operators

 Issues of local content development from the aspect of domestic producers: organization of production and business processes

 Adapted approaches for local content development within the entering the WTO

Moderator

Dr. József Tóth President, World Petroleum Council

 

Speakers

Mr. Nils Andreas Masvie Vice President, Russia & Kazakhstan, Eurasia, DNV GL - Oil and Gas

Mr. Joerg Doerler Principal, A.T. Kearney

Mr. Thomas Quigley Managing Director, MOL Group

Mr. Aibek Krambayev Managing Director, PSA LLP

 

10.50 – 11.10

 

Discussion Panel

(by all the participants of the Expert Workshop, incl. NCOC N.V., KPO B.V., TCO, KazService, Engineering Union of Kazakhstan, Algoritmi Kz LLP, “Atameken”

National Chamber of Entrepreneurs of Kazakhstan  and others)

 Competition in the labour market

 Employment issues

 Skills development

 Manufacturing development

 Capacity development

 Database usage

 Cooperation

 

Moderator

Dr. József Tóth President, World Petroleum Council

Speakers

Mr. Frederic Farschi General Manager – Local Content Programme Management Office (LC PMO), Global Manager Local Content, Shell International Exploration & Production B.V.

Ms. Irina Gaida Senior Partner and Managing Director, Moscow office, Boston Consulting Group

Mr. Kairat Bekturgenev Chairman of the Management Board, National Agency for Local Content Development NADLoC

 

11.40 – 12.00

 

Discussion Panel

(by all the participants of the Expert Workshop, incl. NCOC N.V., KPO B.V., TCO, KazService, Engineering Union of Kazakhstan, Algoritmi Kz LLP, “Atameken”

National Chamber of Entrepreneurs of Kazakhstan  and others)

 

12.00 – 12.15

 

Coffee Break

 

12.15 – 14.00

 

Interactive discussion “Instruments for local content development: views of the Government and subsoil users”

 

 Subsoil Code

 Government regulation of procurement

 Technical regulations, standards development and certification

Moderator

Mr. Rustem Kabzhanov  Executive Director, KAZENERGY Association

Key reports

Mr. Magzum Mirzagaliyev Vice-minister of energy of the Republic of Kazakhstan

Mr. Rzabek Artygaliyev General Manager for Policy, Government and Public Affairs, Tengizchevroil LLP

 

Participants

Mr. Zangar Nogaibay Executive Director, KAZENERGY Association

Mr. Beibit Sabirov Managing Director for Kazakhstan business development, Karachaganak Petroleum Operating B.V.

Mr. Almas Kudaibergen Chairman, KazService Union oilfield service companies of Kazakhstan

Mr. Yerlan Keneskhanov Director of the Local content development Department, Information-analytical center of oil and gas

Mr. Daurbek Utezhanov Manager of the Local content development Department, North Caspian operating Company N.V.


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