Mazhilis Discusses In-Country Value Development in Major Oil and Gas Projects

On April 7, 2026, parliamentary hearings chaired by Edil Zhanbyrshin, Head of the Committee on Ecology and Environmental Management, were held in the Mazhilis of the Parliament of the Republic of Kazakhstan to discuss the development of In-Country Value (ICV) in major oil and gas projects.

During the hearings, the importance of increasing the share of local content and expanding the participation of domestic manufacturers in the supply chains of major oil and gas projects was emphasized. Particular attention was paid to the need for stricter control over actual production localization and preventing the formal fulfillment of local content requirements.

Vice Minister of Energy of the Republic of Kazakhstan, Yerlan Akbarov, reported that by the end of 2025, the total volume of procurement of goods, works, and services by subsoil users exceeded 4.6 trillion tenge. More than 60% of this amount was accounted for by the three major operators.

TCO General Director, William Lacobie, informed that in 2025, the share of Kazakhstan content reached 71%, with goods accounting for 15%, representing a 7% increase compared to the previous year. This growth is attributed to both increased procurement volumes and the expanded involvement of domestic manufacturers in more complex projects, while maintaining standards for quality, safety, and procurement procedures.

KPO remains fully committed to the principles of its approved long-term local content development program. KPO Deputy General Director, Nicola Allegro, reported that in 2025, KPO achieved 18% local content in goods procurement ($55 million) and increased the number of trial orders to 12%.

NCOC Managing Director, Giancarlo Ruiu, noted the success of collaboration with Kazakhstan businesses, emphasizing the focus on manufacturing complex products within Kazakhstan. Over 30 years of operation, the North Caspian Project Operator has directed $18.5 billion toward local content, ensuring steady growth and reaching a local coverage of 70.2% in 2025.

Dastan Abishev, General Director of the International Center for Development of Oil and Gas Machine Building, presented a report on the current activities of the IMBC aimed at developing the potential of Kazakhstan manufacturers, technology transfer, and production localization. During the presentation, it was noted that more than 115,000 product items required by major operators were analyzed, resulting in the identification of priority areas for localization. More than 270 domestic manufacturers across Kazakhstan were visited and assessed. Extensive work was carried out to study the potential of domestic enterprises regarding their compliance with major operator requirements and international standards. As part of this work, 18 individual Potential Development Plans were prepared for manufacturers producing high-demand goods. It was also noted that during the assessment of domestic manufacturers, more than 80 high-potential producers were identified, possessing the necessary technological base, international certificates, and experience in supplying products to international projects.

In cooperation with investors and OEM manufacturers, 9 production facilities have been localized within the Republic of Kazakhstan. In 2026, the localization of an additional 10 new production facilities is planned. For the first time, goods such as pressure gauges, resistance thermometers, diaphragm seals, power cables, explosion-proof equipment, quick-release clamps, and composite materials are being manufactured by local producers according to international standards and purchased by Operators.

Thanks to the joint efforts of the Mazhilis deputies, the Ministry of Energy, PSA LLC, and the major Operators, more than 200 contracts, trial orders, and supply requests have been concluded between Operators and Domestic manufacturers to date, totaling more than $800 million.

Following the presentations, an active discussion on project implementation took place, during which Mazhilis deputies and representatives of industry associations raised a number of questions regarding the involvement of domestic producers.

The parliamentary hearings reaffirmed the high significance of systematic work on production localization, industrial potential development, and ensuring a sustainable economic impact from the implementation of major oil and gas projects in Kazakhstan.