ASTANA (TCA) — A seamless steel pipe production plant has been launched in Aktau, the Mangistau province, to support Kazakh oilfield service companies, the official website of the Prime Minister of Kazakhstan reports.
The Ministry of Energy of Kazakhstan has implemented the project to support the Kazakh oilfield service companies of the country’s oil and gas industry, as well as to increase local content in major projects of the oil industry.
“An agreement on localization of the Tenaris pipe production plant in Kazakhstan in exchange for an extension of the current contract with Karachaganak Petroleum Operating (KPO) for 5 years, worth 212 million dollars, was signed as a result of joint work of the Ministry of Energy of Kazakhstan, KPO and company Tenaris. We hope that the plant will be a bona fide supplier of tubular products and for other subsoil users,” Deputy Minister of Energy of Kazakhstan Magzum Mirzagaliyev said.
According to Deputy Minister, there are other goods with the possibility of their production localization in Kazakhstan.
According to the Ministry of Energy, the new plant plans to provide tubular products under long-term contracts with Karachaganak Petroleum Operating (KPO) and another key operator, Tengizchevroil (TCO).
Forty workers have already been employed at the plant. When the plant works at full capacity and the number of local employees is 95 percent, their number will increase to 90 employees in the future.
As a high-tech plant, at the cost of $40 million, its production capacity will be 45 thousand tons of finished steel oil and gas pipes with gas-tight threaded joints of “premium” class in accordance with the highest safety standards.
