OREANDA-NEWS. July 23, 2010. JSC NC “KazMunayGas” and LLP “Atyrau Refinery” (a subsidiary of JSC “KazMunayGas” – Refining and Marketing”) hold a conference for the Kazakh suppliers of goods, works and services for the purposes of the implementation of the strategic investment project “Construction of the Aromatics Production Complex in the Atyrau Refinery” on 21 July this year in Atyrau.

Representatives of the RoK MOG, JSC “Local Content Development Agency”, the akimat of the Atyrau region, Sinopec Engineering, JSC "OGCC "Kazstroyservice”, Kazakh mechanic engineering companies and others have taken part in the conference.

The main purpose of this event is securing placement of orders of the major Kazakh mechanic engineering companies and electric equipment makers in the implementation of this project.

Delivering a welcome address to the participants of the conference, General Manager for Oil and Oil Products Marketing Projects of JSC NC “KazMunayGas Muratzhan Musaibekov noted the importance of holding this event.

- We are interested in participation of the Kazakh mechanic engineering companies in the Atyrau Refinery-based APC construction project, which is included in the State Program for Boosted Industrial-and-Innovation-Based Development of the RoK for 2010-2014’ – M. Musaibekov noted. - Such meeting make it possible to provide potential suppliers of goods, works and services with the most complete information on the principles and approaches in KMG’s procurement activities, receive feedback and discuss the issues and tasks most important for the participants of the conference, - he added.

The representatives of Sinopec Engineering and JSC NC “KazMunayGas” told the participants of the conference about the technical parameters of the construction of this project and the requirements for the quality of purchased goods, works and services. In their turn, the participants of the event, including the representatives of JSC “Byelkamit”, JSC “Petropavlovsk Plant of Heavy Machine Building”, JSC “Imstalcon”, LLP “Rominserv-Kazakhstan”, JSC “West-Kazakhstan Machine-Building Company” and other companies gave an account of their technological capability to participate in this project.

At the conference it was noted that during the detailed evaluation of the technical and economic proposals of the strategic partners, great attention was had been paid to the Kazakh content. Meanwhile, the Kazakh content is forecasted according to a new methodology, pursuant to which CT-KZ certificates are obligatorily required for confirmation of the Kazakh content.

Engagement of the Kazakh suppliers of works, goods and services by Sinopec Engineering is 30%. Thus, in accordance with the made agreement, JSC “OGCC “KazStroyService”, having experience in construction of major oil industry facilities, will perform a part of the works (services), purchase of equipment and materials for an amount of 362,000 thousand US dollars (54,300,000 thousand tenges).

On the whole, it is planned to purchase equipment for an amount of 58,155 thousand US dollars (8,723,178 thousand tenges), or 16%, materials - 52,342 thousand US dollars (7,851,362 thousand tenges), or 18%, works (services) - 111,865 thousand US dollars (33,354,341 thousand tenges), or 29%, from Kazakh companies during construction.

In an effort to engage Kazakh specialists, 270 job will be created in 2010, 1,500 jobs are planned for 2011, 1,800 – for 2012, and 900 – for 2013.

Currently, preparatory works on the construction sites to dismantle equipment and installations in the territory of the AR are underway.

Design-and-survey works will commence in the 4th quarter of 2010. Purchase of the equipment will be made for the most part in the 2nd half of 2010 through holding tenders according to the principle of openness, transparency and equality.

As is known, the agreement on turnkey construction of the aromatics production complex for an amount of 1,040,000,000 (one billion forty millions) US dollars has been signed between LLP “Atyrau Refinery” (a subsidiary of JSC “KazMunayGas” – Refining & Marketing") and Sinopec Engineering (China) on 29 October 2009.