Kazakhstan must develop its own oil service - Tokayev

ASTANA. Sept 12 (Interfax) - Kazakhstan should create mechanisms for the financial support of its oil service companies, President Kassym-Jomart Tokayev said.

"It is necessary to take effective measures to provide bank financing to Kazakh enterprises under signed contracts with oil and gas corporations. Financial regulators need to finally make a decision on this issue," Tokayev said at a meeting with business representatives on Tuesday.

He instructed the government to take comprehensive measures to promote Kazakh oil service companies abroad. Another instruction was a "counter" one: to be successful at persuading foreign oil service project offices to relocate to the country and attract Kazakh specialists.

Tokayev noted that design solutions include imported materials and equipment, which deny local producers access to the implementation of oil and gas projects.

"The local content in the goods used for the largest projects (Tengiz, Kashagan, Karachaganak) does not even reach 5%. The government should strive to move project design offices to Kazakhstan with the mandatory involvement of local engineers and companies," the head of state said.

Tokayev emphasized that it is not an issue of foreign partners violating contractual obligations. "We have worked and will work together with large foreign companies. In essence, this is our long-term strategy. At the same time, we reasonably demand that our requirements be taken into account," the president said.

He also expressed the opinion that the Kazakh employees of oil service companies released from the Tengiz expansion project could be employed in Qatar and Saudi Arabia.

"In connection with the completion of the future expansion project in Tengiz, tens of thousands of oil service industry workers are being released. Potentially promising countries for employing these Kazakh specialists are Qatar and Saudi Arabia," Tokayev said.