ASTANA – In spite of the current condition of oil production in the world, Kazakhstan continues to develop its oil production engineering industry and intends to export oil production equipment to Eurasian Economic Union (EAEU) states.
“Of course, the situation in the world affects the situation in our state and our field. A major part of companies abroad have decreased their investment expenditure and frozen their projects, but we don’t plan to decrease them seriously. Domestic companies produce the following oil production equipment: pumps, nodding donkeys, high pressure tanks and many other products, which are constantly sold in the market,” Chairman of the Mechanical Engineers Union and Deputy of Mazhilis (lower house of Parliament) Meiram Pshembayev said at a briefing of the Central Communications Service on Sept. 25.
“This production process was started five years ago under the first five years of the State Programme of Accelerated Industrial and Innovative Development [SPAIID]. This period of time was used for very dynamic development of oil production engineering. In this year, in spite of a decrease of production volumes, Kazakh oil production engineering plans to export our own products to the EAEU states,” he added.
Kazakh producers provide more than 1,000 types of parts for oil production equipment. Investment activity can be described by the following facts: in 1998, 260 million tenge (US$928,500) was invested in oil production equipment engineering and in 2014 this figure rose to 32 billion tenge (US$114.3 million).
In 2015, production volume amounted to approximately 8 billion tenge (US$28.6 million), but experts estimate it will be seriously increased in the near term, reaching 28 billion tenge (US$100 million). This increase will be caused by major minerals developers working at Kashagan and Tengizchevroil.