Workers producing parts of equipment for Kashagan go on strike

Workers employed with Kazakhstan-based Tulpar Energy Services (TESCO) have taken industrial action to demand their salaries in arrears, Tengriews.kz reports, citing the Company’s statement as quoted by Newskaz.ru.

Dozens of workers launched the campaign to demand the salaries owed to them since December 2013. 40 people have already resigned over the delays.

According to the statement, back in May 2013 the Company won a bidding competition to supply WorleyParsons with painted elements of steel structures used when constructing buildings and pipe racks. The elements were intended for the giant Kashagan project, within which WorleyParsons acts as a subcontractor of Agip КСO.

According to the statement, WorleyParsons was supposed to have paid over $4.3 million in line with the acceptance act.

“TESCO has fully discharged its contractual obligations; however, WorleyParsons hasn’t made the payment. The invoice was issued, but no actual settlements have taken place”, according to Samat Serimbetov, the Company’s Director.

He elaborated that TESCO had turned to the economic court of Mangistau oblast in the West of Kazakhstan; following the application for revocation submitted by WorleyParsons, the court ruled the dispute could only be settled in the international arbitration court based in Almaty.

“We believe the ruling is not substantiated. We turned to the Chamber of entrepreneurs of Mangistau oblast to check the legitimacy of the court orders. We will be trying to have WorleyParsons pay off the lost income worth over $1 million and other losses”, Mr. Serimbetov said.

According to him, he is trying to pay the overdue salaries to the Company’s employees out of the Company’s other sources and hopes the superior court will decide to his Company’s favor.