Local content share in subsoil users’ procurements increased 2.5-fold

“As per the latest amendments to the Law “On mineral resources and subsoil users”, new regulations on the  local content share were introduced too. I mean 20% billback allowance for Kazakhstani producers. We have adopted the regulations on procurement of goods,  works and services for subsoil users. More than 90% of the Ministry’s subsoil use contracts include obligations on purchase of a certain amount of goods, works and services and set appropriate liability for non-fulfillment of these obligations,” S.Shakirov said at an expert meeting on “Local content development and integration processes” in Astana today.

According to him, in 2010-2015, the share of local content in subsoil users’ procurements rose from 680bln tenge to 1.8trln tenge. In 2015, local content share in purchase of goods made 16.6%, works and services – 60.1%. In the first half of 2016, local content share in procurement of goods made 16.4%, works and services – 51.9%. 7,000 Kazakhstani specialists underwent training at the expense of subsoil users to the total amount of 6.5bln tenge.

As S.Shakirov noted, the Ministry spends unutilized funds on training personnel as per a list of the majors required in oil and gas sector. “More than 5,000 job places have been created. Kazakhstani and foreign personnel are paid equal wage to date,” he added.

The meeting was organized by KAZENERGY Association together with the World Oil Council.