Oil and Gas Equipment and Services Mission to Kazakhstan

Mission Statement
Oil and Gas Equipment and Services Mission to Kazakhstan
October 2-10, 2003

Mission Description

From October 2, to October 10, 2003, the Deputy Assistant Secretary of Commerce for Energy, Environment, and Materials in the Trade Development section of the International Trade Administration plans to lead an oil and gas equipment and services trade mission to Almaty, Astana, and Atyrau, Kazakhstan. The mission will include representatives from U.S. oil and gas equipment and service companies interested in entering or expanding their presence in Kazakhstan. While in Almaty, the mission participants will visit the Kazakhstan International Oil and Gas Exhibition, and have the opportunity to display their catalogs in a booth run by U.S. Commercial Service staff.

Commercial Setting

Kazakhstan's booming oil and gas sector presents numerous opportunities for U.S. companies that provide oil and gas equipment and services. Over the past six years, oil production in Kazakhstan has doubled, to about 811,000 barrels of oil per day in 2001. Gas production is also rising, and reached 324 billion cubic feet in 2001. International consortia developing major fields such as Tengiz, Karachaganak, and Kashagan expect to invest over $5 billion over the next few years.

Industry experts and the U.S. Commercial Service estimate that the current market for oil and gas field equipment and services is about $1.1 billion per year, and will grow at about 10 percent annually. There are opportunities for U.S. companies in virtually every subsector associated with oil extraction, processing, and transportation, but the best prospects include geological exploration, geophysics, hydrogeology, drilling, research and data management, laboratory studies, oil spill cleanup technologies, and pipeline equipment and services.

Almaty, Kazakhstan's largest city and business center, is where most of the country's domestic and foreign companies have their headquarters. The Kazakhstan International Oil and Gas Exhibition takes place there every year, and is the largest oil and gas exhibition in Kazakhstan.

Astana, Kazakhstan's new capital city, is where most government offices and the headquarters of KazMunayGaz, the state oil company, are located.

Atyrau, on the Caspian Sea, is the hub of Kazakhstan's oil and gas industry. The international consortia developing Kazakhstan's major onshore and offshore oil and gas fields have offices there, and site visits to the fields are possible.

Mission Goals

The mission will seek to increase exports of U.S. oil and gas equipment and services to Kazakhstan. The mission will advance participating companies' business interests, and address market access issues such as domestic content requirements for oil and gas projects.

Mission Scenario

The mission will visit Almaty, Astana, and Atyrau, Kazakhstan. In Almaty, the participants will attend the annual Kazakhstan International Oil and Gas Exhibition, and the U.S. Commercial Service will display their companies= catalogs in a booth for the duration of the show. They will also meet with the American Chamber of Commerce in Kazakhstan and representatives of financial institutions such as the European Bank for Reconstruction and Development and the World Bank. In Astana, the participants will meet with officials from the Government of Kazakhstan to discuss market access issues. In Atyrau, participants will meet with representatives of international consortia developing oil and gas resources there. In all three cities, briefings and business appointments will be made for members of the business delegation.

Timetable

The mission is scheduled to arrive in Almaty on October 2, 2003, and conclude on October 10, 2003. Included are visits to Astana on October 3, and to Atyrau, October 4-6. The precise schedule will depend on the availability of government officials and industry representatives, as well as the specific goals and interests of the mission participants.

Criteria for Company Participation

Eligibility

Eligible companies must have the capacity to deliver relevant equipment or services to Kazakhstan.

Companies attempting to market goods and services on Department of Commerce trade missions must certify that these goods and services will be either (a) manufactured or produced in the United States, or (b) if manufactured or produced outside of the United States, be marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished good or service.

Selection Criteria

Companies will be selected on the basis of:

Consistency of the company's market development goals with the scope and desired outcome of the mission as described.

Past, present, or prospective business in Kazakhstan.

Diversity of company size, type, location, demographics, and traditional under-representation in business.

Timely receipt of signed mission application, participation agreement and participation fee of $3500, and $500 for each additional representative. The fee does not include airfare, hotels, meals or other personal expenses.

Whether the company's overall business objectives, including those of any U.S. or overseas affiliates, are fully consistent with the mission's foreign and commercial policy objectives.

Provision of adequate information on company's products and/or services, and company's primary market objectives, in order to facilitate appropriate matching with potential business partners.

Participation in the mission is expected to be a minimum of 8 and a maximum of 15 companies.

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Commerce Department trade missions calendar - www.ita.doc.gov/doctm/tmcal.html - and other Internet websites, press releases to the general and trade media, direct mail and broadcast fax, e-mail, notices by industry trade associations and other multiplier groups, and at industry meetings, symposia, conferences, trade shows, etc.

An applicant's partisan political activities (including political contributions) are irrelevant to the selection process.

Applications

Application deadline: June 30, 2003. Applications may be submitted immediately to Rachel Halpern, Energy Division, U.S. Department of Commerce, Room H4054, Washington, DC 20230; telephone: (202) 482-4423; facsimile: (202) 482-0170 or 5361; Internet: Rachel_Halpern@ita.doc.gov. Applications received after the deadline will be considered if space is still available.