Kazakhstan Considers Lower Requirements for Oilfield Service Companies

The government plans to decrease the burden on businesses by lifting the most complicated rules

According to the Ministry of Energy, Kazakhstan is planning to optimize its requirements for oilfield service companies.

As the ministry noted, this step needs some changes to the minister’s decree to be made. After that, it may eventually decrease the burden on business amid the pandemic.  

First of all, if this idea would be accepted, the state will no longer require oilfield service companies to have their own pipelines. The existence of key engineering works and units will be enough.

Secondly, the requirement to have at least two logging devices during field research or geophysical exploration will also be abolished. In practice, one device is enough.

Thirdly, there is no need to possess a cement lorry to close the well with concrete. This is a common practice to bring cement as a powder in bags.

Above all, oilfield service companies won’t need a unit for preparedness, circulation and cleaning of the liquid they use to increase output from the specific oil well.  

Earlier in April, the Association of oil service companies of Kazakhstan appealed to President Kassym-Jomart Tokayev to support the industry.

As Kursiv edition wrote in June after oil prices declined, oil companies have begun to cut costs that also immediately hit oilfield service companies. If oil and gas operations will not re-emerge, tens of thousands of service company workers might face unemployment. Many oil operators have already rescheduled capital repairs not to mention new projects for next year.

More than 3,500 workers of oilfield service companies lost their jobs since the beginning of the year. About 9,000 might be unemployed after the end of the third quarter. If Tengizchevroil fails to restart the Future Expansion Project and Wellhead Pressure Management Project (FGP-WPMP), more than 36 thousand people can find themselves jobless. The industry representatives asked the government to find work for oilfield service companies in order to help them maintain highly qualified workers. As experts believe, the oilfield services market won’t re-emerge until the mid of next year.

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