Local Content Policies in the Oil and Gas Sector

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Purchases of local works and services in offshore operations were significantly high in support activities, such as environmental surveys, insurance services, and legal services, where their share reached 95 percent of purchases. But in more technical offshore activities, the share of local works and services is significantly lower at 6 percent in EPCM (engineering, procurement, construction and management and reaches a maximum of 46 percent in offshore fixed-platform construction (Figure 4.13). Figure 4.13 Kazakh Content in Works and Services Purchased for Offshore Operations, 2011 Seismic operations

20%

Environmental surveys Exploration

93%

Geological, geophysical surveys and other research

Drilling operations Drilling services

40% 8% 10%

Oil spill response and clean-up

18%

Offshore fixed platform construction Development

46%

Cofferdam foundation construction

43%

Preparation of technical documents

20%

Air conditioning and ventilation system

Equipment maintenance and repair Operations

27% 10%

Fixed equioment maintenance and repair

40%

Rotating equipment maintenance and repair

30%

Start-up

22%

Industrial waste management

30%

Insurance services

95%

Emergency consultants’ services / medical treatment Other

80%

Design / feasibility study, permits and approvals EPCM

84% 6%

Customs clearance, transport and forwarding

84%

Legal services

95%

Transportation services

55%

Source: Based on data from KCA 2012b. Note: KC = Kazakh content; EPCM = Engineering, procurement, construction and construction management.

In purchases of works and services in onshore operations, the level of local content was comparable in supra and subsalt fields activities as well as across exploration, development, operations, and abandonment activities (Figure 4.14). Figure 4.14 Kazakh Content in Works and Services Purchased for Onshore Operations by Depth, 2011 80%

Seismic acquisition

69% 76%

Exploratory drilling

Exploration

40%

80%

Geotechnical studies

69% 60% 59%

Analyses and research

76%

Construction and installation

59% 70%

Well drilling and construction Directional drilling Development

40% 40% 30% 76% 75% 76% 75%

Power supply Pipeline construction Design

50% 40% 70% 69%

Oilfield equipment maintenance

76%

Well workover Operations

Enhanced oil recovery

60% 40% 39% 87% 86%

Waste management 50% 49%

Oil / gas transportation

80% 80% 80% 80%

Rig-down operations Abandonment

Well suspension

90% 90%

EIA (ecology) Suprasalt fields (up to 2,500 m)

Source: Based on data from KCA 2012b. Note: KC = Kazakh content; EIA = Environmental impact assessment.

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Subsalt fields (up to 2,500 m)


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