Local Content Policies in the Oil and Gas Sector

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Figure 4.9 Kazakhstan: Reports Filed by Subsoil Companies, 2008–11 Reports on Commodites and services

50%

Yearly Purchase Plans

95% 95%

99% 98%

2010

2011

59% 59% 42%

2008

2009

Source: Based on data from MOG 2012c.

Additionally, the level of local content in GWS in 2011 is showing an increase compared to 2010 (Figure 4.10). More specifically, the level of local content in goods increased by 2 percentage points in 2011, while local content in works and services increased by 8 percentage points each (Table 4.12). Figure 4.10 Evolution of Kazakh Content in Monetary Presentation for the Purchase of Goods, Works, and Services, 2009–11 (in KZT billion) % Change 2009 - 2011

2,207

44%

Imported

553%

56%

KC

309%

1,505 +390% 54%

450 33%

46%

67% 2009

2010

2011

Source: Based on data from MOG 2012c. Note: KC = Kazakh content. Table 4.12 Kazakh Content in Goods, Works, and Services: 2010–11

Goods Works Services

2010 Total spend (KZT billion) 354 405 746

% KC 10.3 50.0 60.6

2011 Total spend (KZT billion) 352 889 967

% KC 12.2 58.0 69.1

Source: Based on data from MOG 2012c. Note: KC = Kazakh content.

In purchases of goods in offshore operations, the share of local goods was highest in development activities compared to exploration and operations activities, where the share of local goods didn’t exceed 9 percent. More specifically, the highest share of local goods purchases was in development activities such as foundation construction purchases (83 percent), followed by tank farm-system purchases (71 percent), and offshore fixedplatform-construction-related purchases (46 percent). On the other hand, the lowest share of local goods purchases was at 7 percent in development-related software products and nitrogen units and operationsrelated spare parts (Figure 4.11).

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