KazMunayGas Facilitates Growth of Oil and Gas Equipment Facility in Zhanaozen
KazMunayGas to Establish Oil and Gas Equipment Production Facility in Zhanaozen
ASTANA – KazMunayGas (KMG), the national oil and gas company of Kazakhstan, is taking steps to attract investors by setting up an oil and gas equipment production facility in Zhanaozen. According to KMG’s press service, the plant is scheduled to commence operations next year and will cater to the needs of oil and gas extraction.
The new facility in Zhanaozen aims to produce 51,000 tons of pipe products, 540,000 units of sucker rods, and 100 oil heaters annually. This initiative is part of a program initiated by KMG’s subsidiary, Ozenmunaygas, which selects potential investors to establish production facilities in Zhanaozen essential for KMG and its subsidiaries.
In line with this program, KMG has approved a list of goods and changed the procurement procedure. Kaskor-Mashzavod, a prominent machine-building enterprise in the Mangystau Region, became the first investor to embark on the construction of such a facility.
The groundbreaking ceremony for the new plant in Zhanaozen took place on April 24, with KMG Chairman Magzum Mirzagaliyev and Mangystau Region Governor Nurlan Nogayev in attendance. The planned investment for the project surpasses 17 billion tenge ($38.3 million) and is projected to create over 250 new jobs for Zhanaozen residents over a period of three years.
The establishment of this production facility is expected to promote import substitution, boost the regional economy, and increase tax revenues for local and state budgets. Nogayev highlighted that the regional administration and KazPetroDrilling company had previously signed a memorandum of understanding in September to implement the project.
This strategic move by KMG underscores its commitment to enhancing the domestic oil and gas industry and driving economic growth in the region through targeted investments and partnerships with key stakeholders.
