KAZAKHSTAN UPSTREAM OIL AND GAS technology and R&d ...

Industry opportunities
112
A sound financial case and
business model
Throughout the course of this project, attempts
were made to gather views on the sort of
local companies that could make a positive
difference to the way the upstream oil and
gas industry operates. At one point, project
participants were asked directly to rate the
various technology solutions put forward
in terms of the strength of the industry
opportunities associated with them. The topranked
solutions are listed in the box at the
top left corner of the map.
Below this box is another that contains
a list of perceived upstream oil and gas
industry strengths in Kazakhstan. (This list is
based on an assessment of the maturity of
the technology solutions outside and inside
Kazakhstan, supplemented by much valuable
input from KING.)
A straightforward comparison of the two
lists leads to the conclusion that the most
realistic industry opportunities lie in the
area of steel and concrete structural design
and fabrication, the provision of upstream
chemicals and sand-screen manufacturing.
Six of the possible opportunities highlighted
by project participants have not made it
through onto the short list – blocks to progress
were thought to exist in these cases. The
high cost of corrosion-resistant alloys could
theoretically be allayed by setting up local
production facilities; however, manufacturing
(and testing) capabilities in Kazakhstan were
thought to be lacking. Undertaking more R&D
in this area is a sensible way forward. In the
case of SCAL services, there has been a lot of
investment in the last year, but there are further
upgrades desired by the operators. Jack-up
rigs for cold climates and ice-scouring-resistant
design constitute immature technology
globally. Both will require a combination of
R&D and heavy industry participation to move
the technology forward; as such neither offers
immediate industry opportunities.
Sulphur storage, transportation and products
seem like perfect opportunities for Kazakhstan
to build local capability. But two critical things
must happen before these will be realised.
There needs to be overhaul of the regulations
surrounding the use of sulphur; and the
markets in Kazakhstan need first to be created
and grown.
While the roadmapping project has
succeeded in identifying real opportunities
for local companies in Kazakhstan, in the
longer term a more formal and rigorous
approach is needed to maintain a continuous
flow of similar ideas. Ideally, this ought to be
overseen by a strong government/industry
council. Its role would be, in the first place, to
invite oil and gas operators to provide regular
information about their materials, products
and services requirements, the scale of these
requirements and their timing. This market
research would be made available to the
relevant international and local companies
who would subsequently be invited to put
forward local manufacturing and service
solutions – ideally with strong local job
creation, technology transfer and supply chain
development credentials.
A sound financial case and an effective
business model (including skills development
and training needs and based on, for
example, a joint venture, licensing agreement
or a wholly foreign-owned, locally registered
company) would be a condition of the
opportunity gaining government support.
For such a process to work, there needs to
be good communication and open dialogue
between government and industry. There is
a widespread view that there needs to be
less bureaucracy surrounding the import of
goods and equipment and that the business
regulatory environment has to become more
fluid and transparent and easier to negotiate.
there needs to be good communication and open
dialogue between government and industry.
Kazakhstan Upstream oil & gas technology and R&D roadmap