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Meeting with the oil industry representatives

by December 7, 2016 Market

The meeting has been attended by investors, managers of domestic and foreign oil and gas companies, government representatives and veterans of the oil and gas industry.

The Head of State noted that the oil and gas industry is of special importance for the country’s economic development and the citizens’ wealth-creation.

– Discovery of the Kashagan field has become the most spectacular event over the last 50 years in the global energy sector. Its reserves are estimated at 4.5 to 5.5 billion tons of oil and 3 trillion cubic meters of gas. Kashagan is another major project for improving the welfare of Kazakhstan’s people. Congratulations to all on the launch of this field, the President of Kazakhstan said.

Nursultan Nazarbayev emphasized that the North-Caspian project is a prime example of effective international cooperation and open partnership.

– Kashagan naturally consolidated Kazakhstan and the global largest oil companies’ common goal. ENI, Total, ExxonMobil, Shell, China National Petroleum Corporation, Inpex have brought to our country a wealth of experience and accumulated knowledge. It is gratifying to say that our “KazMunayGas” company is now ranking with the best of international class, the Head of State said.

The Kazakh President drew attention to the efforts focused on advanced vocational training of national specialists in the oil and gas industry.

– $ 250 million have been spent for vocational training of 15 thousand Kazakh workers since 1998. In this interval of time we have qualified a whole galaxy of oilers, opened new careers and have established the Naval Academy. Total Kashagan employs over 11 thousand Kazakhstan citizens. As a result, the share of domestic staff in the project increased to 90%. Kazakhstan content in the purchased goods, works and services in 2005 reached US $ 12.7 billion, and its share amounted to 30%, Nursultan Nazarbayev said.

The President also stressed that in the framework of the Kashagan development such a new industry as shipbuilding had been created in the country.

– The base of the fleet for marine support operations has been formed as the ecological base of response to oil spills. So we started the active phase of the Kashagan field exploitation. It is important to stay strong in the pursuit of our goals and make provision for early reaching the project capacity, the President of Kazakhstan said.

At the same time, Nursultan Nazarbayev proposed considering the possibility of increasing the degree of processing and the proportion of domestic raw materials.

– It is necessary to involve more local companies, including oil and gas service, for development of the local content and domestic staff. The following year Astana hosts EXPO-2017 international exhibition. I invite those present representatives of major oil companies to participate in this exhibition. I think this is a good opportunity for you to present the world the latest technological achievements, President said.

The Kazakh President congratulated those present on the 25th anniversary of Independence, having noted the country’s significant achievements.

– Total inflow of foreign direct investment into the country amounted to more than 265 billion dollars. We have earned the confidence of international investors. Apart from Kashagan, there are other major projects, where we have good cooperation. It is, first of all, the development of the Tengiz and Karachaganak fields. Large multinational companies Danone, General Electric, Heidelberg, Hyundai and others have come to the non-oil sector. Investments in the manufacturing sector increased by 3 times compared with the previous five years, Nursultan Nazarbayev said.

During the meeting with the oil industry representatives the Head of the State noted that Atyrau region is among the regions that make a significant contribution to the national economy development.

– As we can see, over the years of independence socio-economic situation has significantly grown in the region. The region’s population grew by 37%. The average salary has increased by 11.5 times since 1999. Gas service is installed in the whole area, and there is a centralized drinking water supply. 7.3 million square meters of housing have been built, and the volume of investment in fixed assets increased by 10 times, the President of Kazakhstan said.

During the meeting the Head of State was informed by Atyrau Oblast Akim N.Nogaev and Energy Minister K.Bozumbaev about the current situation and prospects of the oil and gas industry development in the region.

Via teleconference Nursultan Nazarbayev got acquainted with the work of the major oil and gas industry, including the Kashagan field, “Bolashak” plant, the Caspian Pipeline Consortium oil pumping station, and “KazTransOil” company.

In addition, the President of Kazakhstan was presented the progress of the Kazakhstan-China pipeline enhancement effected by “KazTransOil”. That development will increase the oil pumping through Atyrau-Kenkiyak main oil pipeline from 4 to 12 million tons per year.

At the end of the meeting the Head of State has awarded distinguished employees of the oil and gas industry by giving the orders “Barys”, “Parasat”, “Dostyk”, “Kurmet”, “Yenbek Danky” and “Eren enbegi ushin” medals.

Source: President of the Republic of Kazakhstan