Shell to revisit its local content development program in Kazakhstan

ALMATY. March 18 (Interfax) - Shell (SPB: RDS.A) will revisit local content approaches in its projects in Kazakhstan in order to increase the purchase of local goods and services, the Kazakh prime minister's press service said.

Prime Minister Olzhas Bektenov held a meeting with Shell Plc CEO Peter Costello to discuss the progress of joint oil and gas projects, according to the press release.

"Following the meeting, the company will review its local content development program in the nearest future to increase the purchase of goods and services on the domestic market," the press release says.

Bektenov said that it was a major priority to increase Kazakh content in the ongoing projects, also including through production localization in Kazakhstan.

"Today, the local content in the project operators' activities is at an acceptable level, while the share of local content in the purchase of goods still remains extremely low. To improve the situation, we need a closer cooperation with local producers," Bektenov said.

In addition, Bektenov and Costello discussed the progress of joint projects in the oil and gas sector.

The Karachaganak expansion project is aimed at maintaining the oil and gas condensate production at 11 million tonnes per year. To this end, the operator will put into operation additional gas reinjection compressors.

The prime minister and Shell CEO also discussed the operation of the Kashagan field. Over the past year, oil production at Kashagan amounted to 18.77 million tonnes and gas output came to 11.86 billion cubic meters, gas reinjection into the reservoir totaled 5.83 billion cubic meters, the press service said.