BAKU, Azerbaijan, October 16. Kazakhstan's Oil
Services Company and KSP Steel have signed an offtake contract for
the production of casing and tubing for oil and gas wells in
2027-2029, KazMunayGas (KMG) reported.
The contract was signed in Uralsk on the sidelines of a forum on
the development of oil and gas engineering.
Oil Services Company is an oilfield services subsidiary of
KazMunayGas. The company specializes in drilling, workover, and
well servicing. KSP Steel is a Kazakh manufacturer specializing in
the full-cycle production of seamless steel pipes.
"Increasing local content and localizing production in
Kazakhstan are among KazMunayGas' strategic priorities. Offtake
contracts play an important role in achieving these goals by
supporting domestic manufacturers and meeting the oil and gas
industry's demand for locally produced goods", KMG said.
Since 2019, KazMunayGas has signed a total of 545 offtake
contracts worth 105 billion tenge (about $231.2 million).
KMG said it is pursuing a systematic approach to increasing
local content and developing import substitution. Alongside
supporting existing production facilities, the national company is
helping develop new areas of oil and gas engineering.
As previously reported, on September 30, 2026, during the
KIOGE-2026 international conference and exhibition in Almaty, West
Kazakhstan Machine-Building Company and US oilfield services
company Baker Hughes signed an agreement to provide services for
major oil and gas projects.
The US dollar equivalent is calculated at the National Bank of
Kazakhstan's exchange rate of 454.14 tenge per $1 as of October 16,
2026.
