Kazakhstan localizes 10 oil and gas equipment production facilities

The Government, through the Ministry of Energy and in cooperation with subsoil users, is working to increase the share of Kazakh content in oil and gas procurement. The measures are aimed not only at expanding purchases from domestic manufacturers, but also at establishing a sustainable partnership between the state, major operators and businesses to support the long-term development of the national industry.

Legislation is also being strengthened to support domestic manufacturers, with subsoil use contracts setting minimum local content requirements and greater accountability for meeting in-country value obligations. Where domestic alternatives are available, procurement is carried out among Kazakh producers, with minimum in-country value requirements of 50% for works and services and 80% for design work.

Particular attention is being paid to Kazakhstan's largest oil and gas projects — Tengiz, Karachaganak, and Kashagan. Five-year programs implemented jointly with Tengizchevroil, Karachaganak Petroleum Operating B.V. (KPO), and North Caspian Operation Company (NCOC) aim to gradually increase the share of Kazakh goods, works and services, expand long-term agreements and offtake contracts, localize new production facilities, and introduce management KPIs to ensure the targets are met. In 2025, the programs showed positive results, increasing in-country value and expanding the participation of domestic manufacturers in major oil and gas projects.

Particular focus is also being placed on developing oil and gas machinery manufacturing. Together with the IMBC Center, the needs of major operators were assessed, identifying 19 promising product categories. More than 120,000 items were reviewed, with over 160 high-demand products identified, providing specific areas for the localization of production in Kazakhstan.

To date, Kazakhstan has localized the production of 10 types of original equipment for the oil and gas industry, ranging from valves and instrumentation to chemical reagents, composite materials and anti-corrosion coatings. Another 15 production facilities for high-demand products are planned to be localized by 2027, with the involvement of leading global manufacturers.

The use of long-term agreements and offtake contracts between oil and gas companies and domestic manufacturers also continues to expand. Their total value more than doubled from 21 billion tenge in 2024 to 49 billion tenge in 2025, with this upward trend continuing in 2026. The Ministry regularly reviews procurement to identify opportunities for import substitution and works with subsoil users to increase the participation of Kazakh manufacturers in supplying equipment and services to the oil and gas industry.

The measures are aimed at increasing in-country value, expanding the industrial base and localizing advanced production, helping reduce the oil and gas industry's dependence on imports while strengthening technological capabilities, attracting investment, and creating new jobs.

Earlier, Qazinform News Agency reported that NCOC faced enforcement of a 2.3 trillion tenge environmental fine.