2009

Local Content in the Procurements of the KazMunayGas Group in 2009

Client	Goods		Works		Services		Total Amount of contracts, mln. tenge	Local Content %
	Amount of contracts, mln. tenge	LC %	Amount of contracts, mln. tenge	LC %	Amount of contracts, mln. tenge	LC %
Группа компаний НК «КазМунайГаз»	218 474	74	115 781	78	96 534	85	430 789	77

Implementation of the Memoranda by the areas

Regions	Memorandums’ sums, tenge	Contracts’ sums, tenge
Astana	1 690 747 459	1 813 525 430
Almaty	6 061 172 933	2 458 656 403
Almaty oblast	30 087 680	39 730 747
Akmola oblast	302 855 391	57 961 896
Aktobe oblast	732 422 627	727 774 290
Atyrau oblast	1 776 674 300	1 500 276 034
Eastern-Kazakhstan oblast	1 418 735 873	894 299 182
Zhambyl oblast	222 025 584	263 793 598
Western-Kazakhstan oblast	1 511 061 158	1 074 252 456
Kostanai oblast	181 608 558	82 329 150
Karaganda oblast	161 063 010	97 009 454
Mangystau oblast	19 713 400 287	25 703 841 799
Pavlodar oblast	2 703 152 715	2 415 188 261
Northern-Kazakhstan oblast	2 429 360 916	2 222 822 759
Southern-Kazakhstan oblast	5 305 139 820	4 619 088 596
Total	44 239 508 307	43 970 550 054

Reasons of Non-formation of contracts pursuant to the Memoranda

Total out of 442 signed memoranda for the total amount of 44,239,508.307 KZT, under 40 memoranda the contracts were not concluded to the amount of 2,775,404.532KZT, among them:

• Under 18 memoranda to the amount of 917,374.814 KZT the suppliers did not participate in tenders;
• Under 7 memoranda to the amount of 398,230.445 KZT the budget was sequestered by the correction;
• Under 12 memoranda to the amount of 1,021,345.670 KZT the contracts were formed with other domestic suppliers, having won tenders within the framework of the established rules under conditions of the lowest price quotations;
• under 3 memoranda to the amount of 438,453.603 KZT the contracts were formed by means of direct procurement with another Kazakhstan suppliers (with LLP «Zhanarys» according to the Decree of the Government of the RK and with JSC «PZTM» in accordance with the Unified Rules to the decision of the Board of Directors).

Measures taken to increase the Share of the Local Content

• Information support of Kazakhstan suppliers of goods, works and services on the needs of the Company for the medium and long-term perspective. Posting procurement plans for 2010 at the corporate sites, introduction of catalogs of the goods scheduled for purchase in 2010-2012.
• Holding visiting meetings with domestic manufacturers in Petropavlovsk, Uralsk, Pavlodar, Taraz, Kokshetau, Shymkent, Aktobe in the first quarter of 2010.
• Entering Memoranda on cooperation and contracts with Kazakhstan suppliers of goods, works and services.
• Development and implementation of NC «KazMunayGas» JSC Promotion Program of the oil and gas machine building development in the Republic of Kazakhstan for 2010-2012.
• Creation of the Coordination Council of the oil and gas machine building, consisting of the specialists of NC «KazMunayGas» JSC and major machine building companies of the Republic of Kazakhstan.

Share of the Local Content in the Procurements of the KazMunayGas» Group