U.S. technology provider Lummus is set to establish a digital innovation and skills centre in Atyrau, an oil hub in Kazakhstan. This initiative aligns with the Central Asian nation’s objective to enhance the capabilities of its local workforce.

Source: UpstreamOnline

In a statement released on Monday, KazMunayGaz, the state-owned oil and gas holding company, announced that its fully owned subsidiary, KMG Engineering, will manage the new facility.

KazMunayGaz emphasized that the centre aims to facilitate the transfer of Western technologies to Kazakhstan while providing essential training for the oil, gas, and petrochemical sectors.

Founded in 2014, KMG Engineering emerged from the commercialisation of the Soviet-era Kazakh Oil & Gas Institute and its engineering design subsidiaries, focusing on oilfield production and drilling solutions.

In 2019, KazMunayGaz broadened the subsidiary's mandate, enabling it to compete for engineering design projects in Kazakhstan alongside international leaders in the field.

Last year, KMG Engineering was selected by leading Russian oil producer Lukoil for front-end engineering and design services related to the development of the greenfield Kalamkas and Khazar fields in the Kazakh sector of the Caspian Sea, with first oil expected by 2029.

Kazakhstan has also secured Lummus' process solutions for three major gas-to-polymer plants located near Atyrau.

The preliminary agreement for the Atyrau centre was signed during a visit by Askhat Khasenov, chairman of the KazMunayGaz executive board, to the U.S., where he met with Lummus CEO Leon de Bruyn, as stated by the Kazakh company.

Additionally, KazMunayGaz mentioned that it is eager to enhance collaboration with two U.S. supermajors that have a strong foothold in Kazakhstan, aiming to elevate local oil and gas industry skills and knowledge.

The Kazakh company has requested ExxonMobil to share its expertise in horizontal drilling and oil recovery stimulation, while announcing that Chevron has agreed to partner with KazMunayGaz in advancing product and service localisation, personnel training, and capability development.

According to KazMunayGaz, Chevron has committed to invest up to $130 million for these initiatives.

Chevron operates Tengiz, Kazakhstan's largest oilfield, and holds a minority stake in the country's third-largest development, Karachaganak. ExxonMobil, meanwhile, is a minority shareholder in both Tengiz and Kazakhstan's second-largest oil project, the offshore Kashagan field.