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

Vision
16 Direction and reassurance
A good roadmap shows you precisely
where you are, where you want to go – and
how to get there. It provides direction and
constant reassurance that you are on course
to reach your objective.
Roadmaps of our highway infrastructure
enable you to build a picture of the
geographical landscape and help you plot
the most efficient path through it. In much the
same way, an industry roadmap provides
a picture of the complex interconnections
and the different layers that make up the
industry landscape. Arguably of more value,
the roadmap also highlights the challenges
and opportunities within a given area and
indicates the best way to overcome the
former and take advantage of the latter.
The Kazakhstan upstream oil and gas
technology and R&D roadmap has been
developed within the framework of the
Foreign Investors’ Council (FIC) with the
support of Nursultan Nazarbayev, President
of Kazakhstan and Chairman of the FIC.
The roadmapping project, which began
in May 2010, has been led by Shell and
supported by numerous key stakeholders
in the industry. The international operating
companies (IOCs), the smaller independent
operators and the international service
companies (ISCs) working in Kazakhstan
have all been heavily involved at some
stage. The state oil company KazMunayGas
(KMG) and the Kazakh Institute of Oil
and Gas (KING) have played vital
roles throughout the project, and the
county’s leading universities and industry
organisations have provided further
local intelligence. Shell’s stance from the
beginning has been that this should be a
collaborative effort and the outcome should
represent the collective view of the entire
upstream oil and gas industry in Kazakhstan.
Crystal clear
Crucial to the success of the project was
defining an industry goal – a vision – around
which to anchor the roadmap.
President Nazarbayev has a crystal clear
vision for Kazakhstan. It is one of sustained
growth fuelled by a diversified, innovationled
economy that capitalises on the nation’s
considerable hydrocarbon resource base.
As early as 1997, the President described
the oil and gas extraction industry as
the “vital base of the country and the
starting point from which to begin building
Kazakhstan’s structural policy.”
Participants in the present roadmapping
project were keenly aware of the importance
placed on the industry by the President when,
as part of the project, they advanced their
vision for the Kazakhstan upstream sector.
The vision is of an industry that
maximises the value of its oil and
gas resources through world-class
R&D and strong local companies
capable of delivering high-quality
materials, equipment and services to
the international standards demanded
by major resource holders and field
operators.
Contained within this vision is the need
for a strong policy framework and fiscal
incentives to encourage technology
R&D and innovation in Kazakhstan.
Further, there is the expectation that the
government and the industry will work
closely together to set priorities and
indicate where research efforts and
resources should focus.
On the issue of technology development,
there is broad agreement that it makes
sense for Kazakhstan, where possible,
simply to adopt upstream technology
solutions established elsewhere – to
be an astute fast-follower. However, it
will also be necessary to take existing
technologies and adapt them to meet
specific challenges, or, in some cases,
to invent new technology, either alone or
in collaboration with other organisations
around the world.
The vision is also very clear that, assuming
Kazakhstan companies respond positively
to the opportunities presented to them,
they will ultimately be able to compete
with the major international technology
providers in a range of areas. It must be
stressed, however, that underpinning this
entire vision, there has to be a drive within
Kazakhstan to develop the professional
skills and competences essential to
maintaining a deep and permanent oil
and gas industry resource base within the
country.
Kazakhstan Upstream oil and gas technology and R&D roadmap