Dastan Abishev –the systematic work of IMB Center in the development of Oil and Gas machine building

The journalist Zakon.kz spoke with Dastan Abishev, General Director of International Center for Development of Oil and Gas Machine Building (IMB Center) about the results of the work in 2024 and future plans.

 

– The President Kassym-Jomart Kemeluly Tokayev constantly pays special attention to the development of domestic machine building. What role does IMB Center play in the development of Kazakhstani production of oil and gas goods and how does its activities contribute to the fulfillment of the strategic objectives outlined by the President?

 

– IMB Center was created as per initiative of the Government of the Republic of Kazakhstan with the support of three major oil and gas Operators: Tengizchevroil, Karachaganak Petroleum Operating B. V. and North Caspian Operating Company N. V.

 

The main goal of IMB Center is to become a link between major Operators and local manufacturers. Among the key areas of our work is the analysis of the needs of Operators in oil and gas equipment, the study of the Kazakhstani manufacturers' market and the provision of expert support to Kazakhstani manufacturers to develop their production potential. IMB Center also actively promotes the localization of production of foreign oil and gas goods and technology transfer.

 

In other words, IMB Center examines the needs of Operators for goods and technical requirements, then, based on the requirements of Operators, identifies gaps in the technological process of local manufacturers, develops step-by-step recommendations and provides technical support to eliminate them.

 

The result of our work is the practical implementation of import substitution tasks by increasing the production of oil and gas goods by Kazakhstani enterprises that meet the requirements of oil and gas Operators, and, consequently, reducing the volume of goods purchased from abroad.

 

And most importantly, the multiplier effect on the economy of Kazakhstan is increasing, that is, due to the production of oil and gas goods in Kazakhstan, a chain of positive economic consequences arises that spread to other sectors of the economy and generate economic growth in the country as a whole, create new jobs, stimulate demand for Kazakhstani components and services, leading to additional income in related industries.

 

In turn, this set of measures contributes to the progressive diversification of the country's economy, which is one of the main state strategic objectives set by the President.

 

Thus, it is safe to say that IMB Center has established itself as an effective platform for interaction to increase the in-country value in the procurement of goods between major Operators, local manufacturers and the state, as well as investors interested in localization of production and technology transfer to Kazakhstan.

 

– What are IMB Center’s main achievements in the various fields of activity today?

 

– Currently IMB Center has analyzed the needs of Operators in 16 commodity categories, which is more than 110 000 items, and identified more than 100 goods with high projected demand. And also prepared 20 generalized technical specifications for goods and visited more than 200 local factories.

 

IMB Center has developed 14 Capacity development plans for local manufacturers and continues to work on 27 international technology localization roadmaps, moreover, 7 localization projects have already been implemented.

 

As a result of the joint work of the Ministry of Energy of the Republic of Kazakhstan, the authorized body “PSA” LLP, three Operators and IMB Center, more than 100 contracts and trial orders worth over 250 million US dollars were awarded.

 

– Let's take a closer look at each area of IMB Center's work individually. Let's start with analyzing the data according to the needs of Operators.

 

– Currently IMB Center has analyzed the needs of Operators for the next 10 years for more than 110 000 product items. For a step-by-step analysis of all the consumed goods of Operators, IMB Center has divided the goods into commodity groups. The analysis for commodity groups A, B and C has been completed. In 2024, IMB Center carried out work on the analysis of commodity group D, which includes critical categories such as compressors, steel, metal materials, drives, turbines and tools.

 

IMB Center consolidates data on high-demand goods consumed by Operators and their technical requirements at a professional and technical level, and for the first time opens access to consolidated information for local manufacturers and potential investors.

 

I would like to emphasize that there is a "scale effect" at this stage of IMB Center's activities. Local manufacturers have a unique opportunity to increase production based on information about total consumption by oil and gas Operators.

 

I repeat, for the first time, within the framework of IMB Center's work, the efforts of three major oil and gas Operators to develop the in-country value of Kazakhstan by summarizing data are coordinated.

 

– As you noted earlier, after analyzing the needs of Operators, the next stage is the analysis of the Kazakhstani oil and gas machine building market. What exactly does this analysis of the local manufacturers market include?

 

– IMB Center evaluates local enterprises according to several criteria, including the quality management system, the requirements of occupational safety, health and environmental management, ethical reliability, the availability and application of mandatory standards and certificates.

 

IMB Center's specialists visited more than 200 local enterprises, of which about 100 have relatively high-demand goods in their product range.

 

 

Based on the information gathered, individual Capacity Development Plans are being developed for local companies interested in further cooperation.

 

– Please share information about the Capacity Development Plan. What is this document and how will it contribute to the development of local oil and gas machine building industry?

 

– IMB Center examines individual production facilities free of charge, focusing on the technical requirements of Operators and international standards, and as a result develops individual solutions for this manufacturer to eliminate identified gaps in their production processes, as well as provides expert support to eliminate deficiencies.

 

The company, which has successfully implemented CDP, starts to produce products that meet international standards, which helps to increase its competitiveness in the global international market and opens unique opportunities for exporting products.

 

Currently IMB Center has prepared 14 CDPs and 11 manufacturing companies have been awarded contracts or trial orders.

 

This activity of IMB Center is carried out on an ongoing basis and currently work is underway with an additional 16 manufacturers to develop CDP that has the potential to produce high-demand goods.

 

– In addition to working with existing local producers, IMB Center also provides support in attracting investments to localize the production of oil and gas goods in Kazakhstan. What is the essence of the work on attracting investments and technology transfer?

 

– For each localization or technology transfer initiative, IMB Center assists in the formation and implementation of the localization project and the corresponding roadmap.

 

Localization case and roadmap serve as a tool that allows Operators to get a general idea of the investor's intentions for localization of oil and gas equipment in Kazakhstan at an early stage. This case is an integral part of the localization process of oil and gas machine building industries and provides an overview of the general main steps that OEM or investor needs to take, as well as the appropriate time frame.

 

Roadmap makes it possible to focus the efforts of all stakeholders on specific tasks and achieving results.

 

IMB Center has prepared and released 27 localization cases, monitors ongoing localization projects within each relevant case and provides the necessary support.

 

 

As part of the joint work of IMB Center with 7 investors and OEMs from the USA, Germany, Italy, etc., the production of new products for the oil and gas sector was established and localized.

 

I would like to highlight one of the localization projects, the OEM Beruseal. Localization work required considerable effort and time on the part of the investor and stakeholders. As a result, the official opening of the production site in Atyrau is planned for the end of February this year. Technology transfer for the production of quick-release clamps for pipe repairs, as well as composite materials for pipeline repairs, has been successfully implemented.

 

In addition, work continues 17 localization projects for OEM enterprises.

 

– What support measures were provided to local manufacturers in 2024?

 

– In 2024, the Ministry of Energy and Operators continued to focus on local content, making some progress in integrating local manufacturers into supply chains.

 

Moreover, an important achievement was the certification of several factories and local enterprises that awarded their products the prestigious API standard.

 

I would like to note that due to the special operating conditions and the high risk of production at the Tengiz, Kashagan and Karachaganak fields, the equipment involved in production is subject to the requirements of international standards and certifications based on the best international practices for working on such projects.

 

The cost of such certificates can range from 30 000 to 250 000 US dollars, which imposes a large financial burden on local manufacturers and significantly affects the pricing of goods, which in turn reduces price competitiveness in comparison with imported goods.

 

To resolve this issue, IMB Center has submitted proposals to increase the amount and threshold of reimbursement for international certificates to the Ministry of Industry and Construction and QazIndustry.

 

IMB Center's initiative to expand the cost recovery program for international certificates will allow Kazakhstani companies to reduce costs and increase their competitiveness. In addition, measures to reimburse the costs of international certificates will increase the export potential of local manufacturers on the international market.

 

Similar reimbursement programs exist in the USA, the EU, South Korea, and other countries.

 

– What significant events can be highlighted from those that took place in 2024, and how did they affect the development of key areas?

 

– In 2024, IMB Center, together with Operators and with the support of the Ministry of Energy of the Republic of Kazakhstan, held an annual Forum on the development of oil and gas machine building, which brought together about 300 representatives of local and international enterprises. An exhibition of goods was organized as part of the event, where for the first time major Operators exhibited their purchased oil and gas goods and technical requirements for them.

 

 

 Local manufacturers and investors had the opportunity to visually get acquainted with the types of equipment used by Operators and discuss in detail the possibility of producing certain equipment.

The annual Forum emphasized the strategic importance of developing in-country value in goods. The discussions focused on bridging the gap between the demand of major Operators and local manufacturers.

As a result of this event, memoranda were signed between Operators and manufacturers, 10 of which later turned into contracts.

Moreover, in 2024, in October and December, for the first time, IMB Center held two seminars in a new format on the possibilities of localization of goods at large projects Tengiz, Kashagan and Karashaganak.

 

 

The novelty of the seminars lies in the fact that the technical team of IMB Center presented an analysis of the needs of Operators and technical requirements separately for goods.

 

As part of these events, contracts were signed with Kazakhstani suppliers of goods.

 

 

– Concluding our conversation, please share your goals for 2025.

 

– IMB Center will continue to analyze Operators’ needs, analyze the market of local production facilities, develop CDPs for manufacturers, and assist in attracting investors, as well as international OEMs.

 

In addition, IMB Center will begin implementing the issue of creating a database of manufacturers of oil and gas equipment in the form of an online platform that will be a link between the needs of Operators and manufacturers in the market.

 

The emphasis will be on the technical verification of manufacturers, and the profiles of registered manufacturers will be supported by relevant materials. Thus, the platform will serve as a universal solution for providing all parties with relevant information on manufacturers.

 

The issue of opening certifying laboratories accredited according to international certificates will also continue to be worked out, which will be an important step towards strengthening industrial independence, improving product quality, and allowing Kazakhstan to become a regional hub in Central Asia for international certification.

 

When certifying laboratories are opened in Kazakhstan, it will no longer be necessary to send samples abroad for testing, which saves financial resources and time.

 

Certificates issued by national laboratories will strengthen the credibility of Kazakhstan's products on both the local and foreign markets, opening up new export opportunities.

 

To summarize, I will share an important information. Currently, the issue of joining IMB Center for new promising projects of NC “KazMunayGas” and NC “QazaqGaz” is being considered.

 

The entry of new participants into IMB Center will give an additional impetus to the development of Kazakhstan's local value by increasing the volume of consolidated information on consumed oil and gas products in Kazakhstan.

 

 

Source: zakon.kz