The Oil and Gas Council of Kazakhstan (PetroCouncil) has appealed to Prime Minister Olzhas Bektenov to address what it describes as unfair pricing practices by Chinese subcontractors in the oil and gas chemical industry.
PetroCouncil, an association representing around 150 Kazakh oil service providers, engineering firms, and manufacturers, published an open letter to the prime minister on its Telegram channel. The letter highlights growing concern over the involvement of foreign companies, particularly from China, in major industrial and oil and gas chemical projects across Kazakhstan.
“By offering services at prices up to 70% below market rates, they are effectively driving out domestic companies,” the council stated. “This creates risks of reduced Kazakhstani content, loss of tax revenue, job cuts, a decline in engineering expertise, and potential threats to quality and industrial safety.”
PetroCouncil argues that the current situation demands systematic government intervention. The organization has proposed several measures aimed at restoring fair competition and supporting domestic industry players.
Among its recommendations is a cap on price dumping in tenders, setting a minimum price threshold no more than 20% below the average market rate. The council also suggests strengthening the weight of the “Kazakh content” criterion when evaluating bids and introducing a “second-best price” principle, favoring local companies when cost differences with foreign bidders are minimal.
Further proposals include stricter oversight of foreign worker permits, enhanced enforcement of labor laws, and the establishment of a national registry of domestic producers involved in oil and gas chemical projects.
As previously reported by The Times of Central Asia, Russian energy giant Lukoil has announced plans to divest its international assets in response to Western sanctions. Kazakh authorities are assessing potential implications for the projects in which Lukoil is currently involved within the country.
