Presentation on theme: "LOCAL CONTENT IN THE NORTH CASPIAN PROJECT ИНВЕСТИЦИОННЫЙ ФОРУМ"— Presentation transcript:
1LOCAL CONTENT IN THE NORTH CASPIAN PROJECT ИНВЕСТИЦИОННЫЙ ФОРУМ Жакып МАРАБАЕВЗаместитель Управляющего директораСОЗДАНИЕ НОВЫХ ПРОИЗВОДСТВ В ЗАПАДНОМ КАЗАХСТАНЕАктау сентября 2012Zhakyp MARABAYEVDeputy Managing DirectorCREATION OF THE NEW PRODUCTION FACILITIES IN THE WESTERN KAZAKHSTAN24-26 September 2012, Aktau
2NCSPSA Contract Area OPF«BOLASHAK» WESTERN ESKENE ATYRAU KASHAGAN KAYRANAKTOTYSOUTH-EASTERN KASHAGANKALAMKAS - SEA
3New Operating ModelNorth Caspian Operating Company B.V. is an Operator under the North Caspian Sea Production Sharing Agreement since 22 January 2009.
4NationalizationIn Q Consortium employed people in Kazakhstan inclusive of subcontractors. Around 80% (79,4 %) of them are RoK citizens which is an outstanding ratio for this type of Project.
5Breakdown of GWS procurement in 2011 Local Content in Procurement of Goods, Works and ServicesShare of Local Content from Total ExpendituresBreakdown of GWS procurement in 2011More than 8 billion USD has been paid for local goods, works and services for the period 2006 – 2 quarter 2012.* Reduction in Local Content level since 2010 relates to the changes in the Kazakhstan Content Methodology calculation in accordance with the current legislationGoodsServicesPayments for local GWS in 2011 were USD 1,085 bln (more than KZT 160 bln) or 27% from total payments.Share of procured Goods is showed including in Works.Last saved: 17 September :04, Author Department: Contracting & Procurement (KZ)
6Long Term Local Content Development Program Phase 2Compression Centre (СС01)Kalamkas SearequirementsMarket Capability OverviewNCOC B.V. developed and implements Long Term LC Development ProgramOperations and Maintenance RequirementsPhase 1Historical data analysisDevelopment of Caspian Coastal InfrastructureLocal Manufacturers of Spare Parts and ConsumablesReview of Kazakhstan Market Capabilities at Pre-Project StageCraft Skills TrainingRealization of the ProgramSDKNCPOCEMKIAKCOThe AuthorityNCOC B.V.Monitoring and ReportingLast saved: 17 September :04, Author Department: Contracting & Procurement (KZ)
7Development and further involvement of local vendors at NCSPSA North Caspian Sea Project demandResultContract awardMarket researchPrequalification and inclusion in Vendor databaseGap analysis and qualification auditsTenderPotential Project suppliers’ selectionandVendor Development ProgramCraft skills trainingsJV FacilitationASME, API, ISO certification7
8Long Term Service Maintenance Local Content Achievements in the North Caspian ProjectDuring implementation of the long term local content development program the Venture initiated training and successfully certified 56 local companies under such international standards as ISO 9001, ISO 14001, ISO and OHSASConsortium is the only among Major Oil and Gas Operators in Kazakhstan that funded and coordinated implementation and certification of the well known Kazakhstan manufacturers to the recognized international standards of American Petroleum Institute (API):Ust-Kamenogorsk Valve Plantand to American Society of Mechanical Engineers (ASME) standard:Zapadno-Kazakhstanskaya Mashinostroitelnaya Kompaniya JSCPetropavlovsk Plant of Heavy Machine BuildingMontazhengineering CompanyIn local companies have successfully passed qualification audits according to the Consortium requirements under 7 commodity areas. Consequently these companies are included in the Vendor Development Program.Operator trained more than 500 employees from 34 local companies to the most demanded craft skills like pipe layers, instrumentations electricians, operators of plant installations, divers and others. These companies are potential vendors to the NCSPSA.As a result of the purposeful activities towards Joint Ventures facilitation and their involvement to the Project, around 70 JVs provide their services to the Venture as of 2005in the course of activities at the present 2600 Kazakhstan companies have been registeredin the Vendor Database of the Venture.OEM and Spare PartsCivil WorksTransportElectrical WorksLong Term Service MaintenanceStructures and TanksWaste Management
9Local Company’s Success Stories on Kashagan Caspian Offshore Construction LLP – the first privately owned 100% local companySince 2005 started working on Kashagan with the first accommodation barge. Total fleet under management has expanded to 39 vessels.In 2008 Operator sponsored training and certification under standard ISO 9001:2000As of 2012 ratio of Kazakh citizens in the crew members reached 70%.Ships Catering Supply LLP - catering, supply of food products, cleaning and laundry servicesIn 2006 the Company started its activities in the North Caspian Project, providing services in D Island for personnel.By 2011 the number of Company’s personnel reached 230, which is ten-times higher the initial indicator.In March 2011 Ships Catering Supply received an international quality certificate of Moody International ISO for safety of food products.Currently, the Company services six facilities as part of the North Caspian Project and continues to develop.If you are interested in cooperation with the Consortium, please visit our Web-site:
10Development of Kazakhstan Industrial Sector Local Content on the North Caspian ProjectDevelopment of Kazakhstan Industrial SectorIn February 2011 NCOC has entered into the Working Group together with Union of Machine Builders of Kazakhstan (UMBK) and KMG, in frames of which Operator:developed a list of O&G equipment and spare parts for perspective demand at North Caspian project which consists of more than 30,000 and submitted for further analysis to UMBK for examination and identification of the list of equipment which has a potential to be produced in Kazakhstandetermined priority commodity groups of international and local manufacturers.held marketing survey on machine building industry of Kazakhstan, where identified constraints and recommendations on development of Kazakhstan enterprises. 200 manufacturing companies have been reviewed.on May, 2011 NCOC in cooperation with TCO, KPO and JSC NC KazMunayGas organized Forum “Original Equipment Manufacturing and Spare Parts”. Forum has been held under the auspices of KazEnergy Association. The main objective of the forum was to support further development of local market on production of goods and services demanded by oil and gas industry and joint venture facilitation. 40 local and 54 foreign companies participated on this event.
11Operator Local Content at the early stage Government and concerned Government bodies for development of LCOperatorPerspective Projects and potential for LCKALAMKAS SEADetailed analysis and market potential study:Fabrication yardsShipyardsSteel structures constructionModules transportation and installationRock supplyHook-up and commissioningPhase 1 historical data analysisLC identification at early stages of contract strategy developmentCompression Centre (СС01)PHASE 2
12Upgraded local content strategy for the development project CONCEPT SELECTIONCONCEPT DEFINITIONSANCTIONPROJECT EXECUTIONEND OF PROJECTDevelop a Local content planShall be based on :Concept selectedMarket surveyContracts awarded after competitive tendersPromotion of new potential bidder, if needed through new JV with International companiesRoK contractors with enhanced equipment, facilities,skilled personnel, experienceEndorsed plan used as a basis for tenderingLocal content : one of the criterion used for the selection of conceptLC Plan endorsedShall include::Scope tendered in RoK with list of certified biddersScope tendered on open marketSustainable element to be included in the scope of the tenderExperience build up through the execution of the contractNew equipment and skills acquisitionNew tenderwith increased local contentNCOC intention is to use Kalamkas Sea as a pilot project to further develop this strategy. This strategy is still being developed and has not yet been finalized. It is presented as an illustration of the room for improvement.
13Preliminary evaluation of manpower needs NCSPSA future projectsPreliminary evaluation of manpower needs(k Man-hr)Occupancy of existing yard capacityMan hours on installation and Hook upThese figures are preliminary are based on the timely approval of the projects by the Consortium and RoK Authorities allowing FEED start as follows: CC ; Kalamkas Sea 2014; Phase II 2016, 2017.These figures are preliminary estimates. The Venture has not yet taken a final investment decision on these projects and these projects are subject to the necessary approvals by the RoK authorities. The figures will furthermore be affected by the timing of such decision and approvals.