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TengizChevroil accused of sabotage in Kazakhstan

18 february 2013, 18:41
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Illustration by Tengrinews.kz
Illustration by Tengrinews.kz
Eduard Kreimer, Director General of KSP Steel (Pavlodar company producing steel weldless pipes for oil and gas sector) declared that TengizChevroil was only imitating teeming activity in development of local content in Kazakhstan. This row erupted at the conference during KazNefteGasService-2013 forum held in Astana on February 14, Ak Zhaiyk writes.

Kreimer said that his company started negotiations on cooperation with TengizChevroil six years ago. TCO representatives visited the plant 5 times and brought in independent experts to evaluate the quality of the goods. Finally, the company received an order for only 130 tons of pipes and later TCO asked to take back the goods and return $3,500.

“The pipes were produced in compliance with the standards and there were no complaints about them. Then during a dispatch TCO representative all of a sudden made a statement: why are your pipes 11m long? We need a standard length of 6m. Fine. We cut them by 6m and dispatched 2.5 tons. Shortly after we received a complaint saying that we failed to comply with the specs,” Director General Of KSP Steel said.

“We are talking about the company resisting development of local production, even though a good quality of goods is provided. A whole range of methods of dishonest competition is being used. This is what I wanted to say in my speech.

"The government does not support us; we have to help it not only unveil the problem, but also find solution and tools to resolve them. We need independent experts and auditors to take part in the procedure of issuing the complaints like the one we have received from TengizChevroil. Because such cases have formed the general opinion that Kazakhstan-made goods are of low quality.

"Please note that all the speakers here say that Kazakhstan producers have to improve the quality. Of course, we cannot say that all the companies are working perfectly. But the issue here has been created and escalated artificially. It is the general policy to make sure that Kazakhstan remains a source of raw materials and the market for Western-made finished goods.

"I am making a statement that TCO is sabotaging local content. What is this claim that they sent us? $3.5 thousand for 2.5 tons? Look at the volumes they are ordering from us? They mean to say “that's more than enough for you”. This is the level of their work with local producers,” Kreimer said on the sidelines of the forum.

Deputy Director General of TengizChevroil commented the situation: “Since the personnel of our engineering-technological group visited the plant 5 times, that means TCO had some kind of interest there. Maybe there were some technical grievances, maybe commercial ones. But the forum is not the place for such discussions. The issue is not about returning the money, but about the poor coordination of cooperation between TCO and KSP Steel. Secondly, TCO is not operating here for the engineering and service companies. It needs them, but has its own goals to achieve.”

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