Supporting local manufacturers through capacity building

The oil and gas industry in Kazakhstan is one of the key industries that plays a crucial role in the long-term development of Kazakhstan. The implementation of the program of development of internal value is closely connected with the oil and gas industry, the goals of which in machine building are import substitution with Kazakhstani manufactured products and building up the export potential of local manufacturers. Increasing the potential of local machine builders to produce new goods in accordance with international standards will open access to foreign markets and create a beneficial investment climate.

In 2021, Association of Legal Entitites "International Center for Development of Oil and Gas Machine Building" (further - IMB Center or Association) was created as per initiative of the Government of RoK, Operators of largest oil and gas fields in Kazakhstan (Tengizchevroil LLP, Karachaganak Petroleum Operating B.V. and North Caspian Operating Company N.V.), which are the sole members of the Association.

The purpose of the Association is to promote the manufacturing of oil and gas goods in Kazakhstan and develop local content in the procurement of goods by major Operators. The Center is a bridge between Operators and machine builders. Its activity is to analyze, forecast, offer solutions, and provide technical support to manufacturers. 

"Based on a thorough analysis, the Center determines the goods that will be in demand among the three Operators in the next 10 years," says Dastan Abishev, Deputy General Director of IMB Center. - We also study the capabilities of our producers - how and in what volume they can meet the needs. The Center compiles a “long-list” of local manufacturers that produce the necessary goods. We invite them to cooperate."

The Center aims to establish partnerships with oil and gas machine building companies across the country. Its representatives have already visited more than 150 companies to study on-site production capabilities and prospects, assess compliance with Operators' requirements and specifications.  

Having collected the data, IMB Center experts are developing a capacity development plan for local manufacturers. The document includes specific steps to eliminate gaps in manufacturing and bring product quality closer to international standards. This approach is aimed not only at raising standards, but also at creating conditions for successful interaction with global partners.

"The Plan is specific practical recommendations, by implementing which local companies will be able to produce products that meet the requirements and standards of oil producing companies," says IMB Center's Technical Manager Temirkhan Alibay. - To make these recommendations we check all technological processes at the enterprises. If we find gaps, we describe step-by-step how they should be eliminated. This is the capacity development plan. In addition to meeting technical requirements, this plan also includes compliance with quality, health, safety and environmental management systems." 

During the implementation phase of the Plan, the Center's specialists continue to assist the manufacturers until it can be fully recommended to major Operators as a reliable supplier. 

Aigul Yesbolova, IMB Center's Technical Quality Expert, says: "Conducting a gap assessment is an important step when implementing a new management system or assessing the level of an existing management system.

 
A gap means something that is missing in your organization: it could be a document or a note or a policy or the environment needed to achieve the intended result.

The role of the quality department in management is crucial, especially if the company has ambitious goals related to sustainable development.  The quality department enjoys a privilege that no other department has, which is to be aware of problems or gaps. It is up to the quality specialists to ensure that the gaps identified are professionally analyzed and solutions proposed."

To evaluate the level of standards, it is important to know that Tengizchevroil, Karachaganak Petroleum Operating Company and North Caspian Operating Company not only demand high quality from the products they purchase, but also need to be sure that the companies producing these products have organized production in strict compliance with HSE regulations. 

"We check the fire safety system, the involvement of the company's employees, and make sure that all necessary certificates and qualifications are in place for the occupational health and safety department and production personnel," says Yermek Tentek, IMB Center's HSE Expert. - In addition, we analyze the environmental management and documentation in accordance with the laws of Kazakhstan and the rules of international certification according to ISO 14001 - this is the standard on ecology and ISO 45001 - this is the standard on occupational health and safety. The result of our work for the company are suggestions for improvement."

Only after all recommendations have been implemented and gaps eliminated, the Center will be able to recommend the manufacturer to the major Operators as a potential supplier. 

"We have developed capacity development plans for 7 manufacturers who have expressed a desire to participate in our initiatives for the first group of products - valves, instrumentation and electrical equipment, and we are at the stage of technical support for manufacturers. - said Samat Sarsengaliyev, Deputy General Director of IMB Center. - We have already recommended some of them to oil and gas field operators. It should be noted that according to the statutory documents, our Center is not involved in the purchasing activities of Operators.

New capacity development plans are being prepared for the second commodity group - heating, ventilation, air conditioning systems, pumps, filters and pipe products."

In 2023, three major Operators provided the Center a new group of goods for which Kazakhstani manufacturers are also to be assessed. Data collection and analysis is being finalized. 

The long-term priority of IMB Center is to build effective cooperation between Operators and manufacturers, eliminate barriers to business, integrate efforts to create a mutually beneficial production ecosystem, and bring local oil and gas machine building to a new level of quality.

Source: tengrinews.kz