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Aktau launches seamless steel pipe plant

by October 14, 2016 Key Issues

Aktau has launched a new pipe plant within support of Kazakhstani oil service companies of the oil and gas industry.

The project was implemented by the initiative of the Ministry of Energy of Kazakhstan that is actively supporting Kazakhstani oil service companies of the oil and gas industry and contributes to increased Kazakhstani share in oil industrys major projects.

As a result of the Ministry of Energy of Kazakhstan, KPO and Tenaris Companys joint work, there was signed an agreement on localizing pipe production in Kazakhstan in exchange for prolongation of existing contract with KPO (5 years, worth $212 million). We hope that plant will with due diligence supply tubulars to other subsoil users, � Vice Minister of Energy Magzum Mirzagaliyev said.

Meanwhile, according to the Vice Minister, there are other much-needed goods of high quality and capacity that should be localized in Kazakhstan.

We hope that other subsoil users, including TCO, NCOC large operators and their foreign suppliers, appraised KPOs successful experience and considered an opportunity to apply early tenders mechanism in their projects, M. Mirzagaliyev noted.

According to the Ministry of Energy, the new plant will provide tubular products under the long-term contracts with Karachaganak Petroleum Operating BV (KPO), as well as another key operator � Tengizchevroil (TCO).

The plant has already employed 40 workers. The number is planned to be in future increased by 90 upon full loading where the local citizens’ share will amount to 95%.

The production capacity of the high-tech plant $40 million worth will be 45 thousand tons of finished oil and gas steel pipes with Premium class gas-proof connections that comply with the highest safety standards. The enterprise will operate in accordance with ISO 9001.

Source: Government of the Republic of Kazakhstan