Kazakhstan's KazMunayGas and UAE's ADP forming a working group for shipyard construction

ASTANA. Jan 12 (Interfax) - Kazakhstan's National Company KazMunayGas (KMG) and Abu Dhabi Ports Group (ADP), a seaport operator from the United Arab Emirates, are forming a working group to explore the possibility of jointly constructing a shipbuilding yard in Kazakhstan, Yerbolat Mendybayev, the head of KMG transportation and logistics department said.

"We are setting up a joint working group [with ADP] to look at existing shipyards in Kazakhstan. Then we will decide on a development plan. At the beginning of 2024, the working group will be travelling to Aktau to visit existing shipyards that currently provide only repair and maintenance services. After the assessment, we will have a clear picture of what needs to be done in order to build a shipbuilding facility that does more than just repair ships," Mendybayev said in an interview with KMG's press service published on Friday.

There are ship maintenance yards in Aktau, but no shipbuilding yards that can build a tanker, ferry or dry cargo ship, Mendybayev said.

KMG and ADP entered into an agreement in early December, 2023 on the principles of creating a ship repair and shipbuilding enterprise in Kazakhstan, he said.

Kazakh Transport Minister Marat Karabayev said earlier that several foreign companies were interested in a joint project for the construction of a shipbuilding yard in Kazakhstan, including Turkey's YDA and Asfat, and the UAE's Abu Dhabi Ports Group.

At the first stage, construction of ten new merchant ships will be required, including three tankers, three dry cargo ships and four universal ferries, the minister said.

National Company KazMunayGas JSC is Kazakhstan's national operator for the exploration, production, processing and transportation of hydrocarbons. The company represents state interests in Kazakhstan's oil and gas sector.

AD Ports Group is a port, industrial and logistics operator in the UAE. The company is one of the region's largest holdings, with a portfolio of major businesses covering key sectors of Abu Dhabi's economy. AD Ports Group operates several clusters including ports, industrial cities and free zones, and is involved in shipping, logistics and digital technologies.