Sustainability

Local Content Development Programme

In line with the state initiatives for the mechanical engineering development, industrialization and digitization programmes, KPO develops and implements a two-year Local Content Development Programme for the Karachaganak project in order to achieve the goals set in the KPO Local Content Policy.

«Qazaqtani tendering» contributes to the growth of competitiveness of local manufacturers and suppliers. In 2020, KPO initiated 35 so-called «Qazaqstani tenders» to be held exclusively among local companies for a total value of US$ 399 mln. As a result, KPO awarded 10 contracts to the local companies worth US$ 1.7 mln. The tender processes for the remaining contracts are continuing.

Since signing the FPSA in 1997 by the end of 2020, the cumulative Local Content share in goods, works and services had exceeded US$ 8.2 bln.

KPO intentionally contributes to the sustainable development within its footprint in the West Qazaqstan Oblast (WQO) manufacturers. Within the framework of the Memorandum of Understanding on cooperation for the development of mechanical engineering in oil and gas industry, KPO closely interacts with enterprises participating in the «WQO Mechanical Engineering for Oil & Gas Industry» sub-cluster and regularly invites them to participate in market research in tenders for deliveries of goods, works and services.

Following the awarded contracts results, in 2020 KPO paid US$ 318.8 mln to the WQO enterprises for deliveries of goods, works and services, and Local Content share reached US$ 226 mln or 70.9 %.