Left overboard at Tengiz
Why do foreign oil and gas giants operating in Kazakhstan continue to purchase goods worth millions of dollars from abroad when similar products are manufactured domestically? Despite repeated calls from various platforms for subsoil users, particularly Tengizchevroil (TCO), to increase local content, the issue remains unresolved, reports «24KZ».
The discussion is not merely about increasing the share of local content. It is about technological resilience and the creation of a fully-fledged industrial ecosystem in Kazakhstan around strategically important projects.
Renaissance SHIK has been manufacturing electrochemical protection equipment for ten years. Its products comply with international standards. The company exports its goods abroad and is ready to fulfill orders for the largest oil and gas operators. It has repeatedly attempted to become a supplier for Tengizchevroil. However, according to the company's management, achieving this has proven nearly impossible.
Igor Karpov, General Director of the company:
- We can handle the most complex order they could offer in the field of electrochemical protection, our core business, including EPC contracts. We have everything necessary for that. A year ago, in June 2025, we invited Tengizchevroil. A delegation of 22 people visited us. They toured the facility and familiarized themselves with our production processes. There was also an exhibition where we showcased our products, which they attended. While memorandums were signed with many companies, we were promised an immediate contract instead. A year has passed, and we are still waiting for them to fulfill that gentleman’s promise.
According to entrepreneurs, the problem extends beyond competition. Kazakh manufacturers must undergo multi-stage selection procedures, including pre-screening, pre-qualification, and technical qualification. Yet even after completing these requirements, they often fail to gain access to tenders. At the same time, foreign companies, many of which merely act as intermediaries and distributors of imported products, continue to work on TCO projects without significant barriers.
This raises an important question: where do legitimate safety and quality requirements end, and where does artificial restriction of access for domestic businesses begin?
Igor Karpov, General Director of the company:
- We have repeatedly contacted all of their specialists. Everyone knows who we are. Unfortunately, the process never reaches the tender stage. We actively promote ourselves, we have registered, and we have met all registration requirements without any issues. We have explained that we operate according to international standards. We even offered to allow their representatives to inspect our equipment before shipment, conduct quality control alongside us, and certify that all testing had been completed and that the products complied with international standards. We went that far to ensure their satisfaction, but so far there have been no results.
According to members of Parliament, a lack of transparency in procurement procedures further complicates the situation.
In the opinion of MP Edil Zhanbyrshin, companies such as Tengizchevroil should conduct open tenders, ensuring equal access to information for all market participants.
Edil Zhanbyrshin, Chairman of the Mazhilis Committee on Ecology and Natural Resource Management:
- There must be transparency so that our manufacturers can actively participate. Procurement from a single source should be avoided. In addition, we must monitor the process annually. We have already discussed the long-term program extending to 2030. Under this program, they are expected to increase the share of domestically produced goods in procurement to 30 percent. Therefore, this program should be monitored every year. They must report on their progress and understand that oversight exists.
Another sensitive issue concerns the food supply market at Tengiz. According to expert estimates, annual food procurement may amount to tens of millions of dollars. However, Kazakh agricultural producers are barely represented among suppliers.
Murat Abenov, Member of the Mazhilis:
- We need an open discussion and a dedicated platform for dialogue. The ministry responsible for this sector should review these requirements and determine which of them are excessive. For example, if the ministry concluded that importing mineral water from France or bacon from the United States is unnecessary because domestic products are of comparable quality, then let us solve that problem. We should not view this as a conflict but as an issue that requires a joint solution.
While domestic enterprises continue proving their competitiveness, the key question remains unanswered: why do Kazakh suppliers still have to fight for the right to work on the largest projects in their own country?
The recent disruption at Tengiz, which led to a sharp decline in production volumes, once again demonstrated that local content is not simply a matter of percentages in reports or contract values. Above all, it is about technological independence.
The greater the involvement of Kazakh companies in manufacturing, servicing, and maintaining equipment, the more specialists, expertise, and responsibility remain within the country to ensure the uninterrupted operation of strategic facilities.
After all, this is the fundamental purpose of expanding Kazakhstan’s participation in the country’s largest oil and gas projects.
Authors: Rauan Kalybayev, Katerina Popkova, Dosbol Baidildin.