Issue № 2 (101) | 2012

Posted in Newspaper

DAILY NEWS # 2 (101) SPECIAL ISSUE DEVOTED TO KIOGE 2012 EXHIBITION

The opening ceremony of the KIOGE 2012 exhibition, organised by ITE Group plc (UK) and Iteca (Kazakhstan), took place yesterday on 2 October in beautiful, warm and sunny weather. It is difficult to put aside the thought that the rainy autumn that had appeared in Almaty only a couple of days before has stepped aside to allow the exhibition to be held even more successfully in sunny weather.

THE UNIVERSAL CHARACTER OF KIOGE

This year sees the 20th edition of KIOGE, the largest oil and gas exhibition in Kazakhstan and Central Asia. It is a rare example of stability and successful growth among exhibitions in this vast region. The event is once again supported by the Ministry of Oil and Gas of the Republic of Kazakhstan, KazMunayGas, the KAZENERGY Association, the Almaty City Administration, and diplomatic missions of exhibiting countries.

This time, the exhibition features participation from over 500 exhibiting companies from 23 countries, which is an excellent result as it is, and even more so considering the global economic situation. Countries represented by exhibiting companies include Azerbaijan, Belgium, Canada, China, Hungary, Iran, Italy, Latvia, Malaysia, the Netherlands, Norway, Russia, Turkey and the United States, and this list is far from complete. These results can be considered as a successful and specific test of the perception of Kazakhstan’s economic potential among the global industry. Moreover, a number of countries – China, Germany, Italy, Kazakhstan, Russia, and the United States – are represented by national stands, which also characterises the attitudes shown both to Kazakhstan’s oil and gas production sector and to the KIOGE exhibition as the key gateway to this sector.

Also, no less informative is the following figure: Kazakhstani companies account for 32% of the total number of exhibitors. The result that could hardly have been dreamt of during the first decade of the project has become a reality.

The following fact is also worth noting: an increasingly wider representation among KIOGE exhibitors is being enjoyed firstly by manufacturing companies from the post-Soviet countries, and secondly by small and mid-sized businesses. This is, undoubtedly, the result of policies of these countries aimed at economic integration and industrial diversification. In this way, KIOGE, which had emerged to a great extent as a project allowing international companies to enter the Kazakhstan and Central Asian markets, has demonstrated its universal geo-economic character.

Igor Sazonov, Deputy Minister of Industry and Innovations of Russia’s Nizhny Novgorod Region, in his welcoming speech at the Exhibition Opening Ceremony, said:

“We are exhibiting at KIOGE for the second consecutive year, and this time our delegation has doubled, as the business community feels that the potential for joint cooperation is enormous, which really is true.”

Such words from a representative of one of the major industrial regions of the Russian Federation have high value. At the same time, it should be emphasised that this is not the usual politeness of official statements: there is an official stand of the Nizhny Novgorod Region actively operating at KIOGE, where its presentation will be held.

“President Nursultan Nazarbayev continues to emphasise that integration is the imperative of our time, and it was upon his initiative that the common customs space has been created, within which we are working with Kazakhstan. This is our competitive advantage, and we should use it, particularly with the help of this exhibition,” said Mr Sazonov.

Michael Jacobs, director of the KIOGE conference from ITE Group Plc, highlighted in his speech the anniversary nature of this year’s exhibition and noted that over the years, the exhibition has been “the best venue to hold negotiations among all oil and gas sector stakeholders.”

“A lot of contracts were signed, a lot of deals were done, and major investments were made as a result of the contacts formed here at KIOGE. With the continuing development of the oil and gas sector of Kazakhstan, we are continuing to develop KIOGE to facilitate the smooth operation of the sector,” said Mr Jacobs.

Boris Danilenko, Sales Director of Iteca, noted that today it could be said with certainty that the KIOGE exhibition and conference has to a full extent followed its development path hand in hand with the development of independent Kazakhstan’s oil and gas industry.

“It is important to note that in this anniversary year, the number of exhibitors has increased by 20%, giving a total of 547 companies. We would like to thank all regular and new exhibitors for the fact that they have chosen KIOGE as a platform to do business in Kazakhstan,” said Mr Danilenko.

The KIOGE exhibition itself, held in five pavilions of the Atakent Exhibition Centre and outside it, has as always made a strong impression with its design creativity and the craftsmanship of the stands, a true kaleidoscope of colours and ideas embodying business opportunities and the offers of the exhibiting companies. Additionally, and although this has never been examined, we believe a scientific paper could be written on KIOGE’s impact on the development of the art of exhibition design in Kazakhstan.

As for the opinions of exhibitors about the organisation of the event, they are always positive. Chingis Yesbosynov, Head of the Logistics Department of Caspian Machine-Building Complex, a drilling and oil field equipment manufacturer and maintenance provider from Aktau with a very interesting stand, told us:

“We have taken part in the exhibition every year since 2005. Every time, following participation in KIOGE, we spend about a week processing the information received there and drafting a list of potential partners with whom we can create synergy. The work then goes on throughout the year, and it almost always yields tangible results in the form of contracts signed. We also intend to exhibit at the next event in 2013.”

Maria Sturova, manager of SkyWave, a Canadian company active in the area of satellite data transfer, noted that her company is participating in KIOGE for the first time.

“We have come to KIOGE because we want to meet with local companies. We are looking for partners here who know the market and can develop solutions based on our products. SkyWave already participated in the Moscow-hosted MIOGE exhibition. We were very happy about that and decided to make our entry into Kazakhstan via KIOGE.”

It is worth noting that the company’s business area will certainly be of great interest to the oil and gas industry of Kazakhstan. Many oil and gas industry facilities are located far away from major settlements, and sometimes even in places where no mobile phone coverage is available. SkyWave will therefore offer the possibility of real-time automatic data transfer from such facilities.

As is always the case at KIOGE, the thematic range of the stands is again also extremely broad. Munay Kurylys Kazakhstan Construction Company, a firm dealing in turnkey construction of workers’ settlements, was particularly eye-catching. The company is participating in KIOGE for the second time.

“We expect opportunities for more substantial growth in the delivery of our products from our participation in the event. Last year, our experience at KIOGE justified our appearing there,” said Dmitry Nazarov, manager of the company’s tender department.

Pavel Beklemishev, General Director of Belkamit JSC and Engineering Complex Development Director of SGT Group, can be quite rightly called a patriarch of the participation in KIOGE of Kazakhstani machine-building engineers. Belkamit has practically never missed the exhibition since 1996. Mr Beklemishev described KIOGE as follows:

“The exhibition is a very useful event reflecting the trends in our industry, and participation is always productive. This is the most significant event of the year in the industry. Our stand today is larger and more beautiful, which demonstrates our attitude to exhibiting this year and, I hope, the plans for next year as well. Participation in KIOGE for our companies is further proof of the fact that we are still strong in the market.”

Especially prominent among the national stands at KIOGE 2012 is Germany’s stand, representing 23 various German companies, many of which have attended the exhibition several times.

“Our goal is to promote German exports. In particular, we aim to enable small and mid-sized businesses that cannot afford to go abroad to find partners in Kazakhstan. As a German association, we have been present at KIOGE for seven years now, which illustrates the effectiveness of the exhibition. Some former participants have opened offices here,” said Kerstin Schoer, International Exhibitions Adviser to the Federal Office of Economics and Export Control.

To learn about the KIOGE 2012 conference and the exhibition’s opening ceremony, attended by the industry’s top representatives, read the second issue of KIOGE Daily News which will be released on 5 October 2012.

THE 7TH KAZENERGY EURASIAN FORUM

“Between East and West: Kazakhstan’s strategy for energy security of the EU and the Pacific Rim”. This phrase, the title of a speech delivered by Sauat Mynbayev, Minister of Oil and Gas of the Republic of Kazakhstan, at the 7th KAZENERGY Eurasian Forum, could very well become a continuation and development of the title of the event: “A World in Transition: Shaping a Sustainable Energy Future”. This could also be achieved by the title of the speech by Ulrich Benterbusch, Chief of Office, Global Energy Policy of the International Energy Agency (IEA): “Global energy outlook: The role of Kazakhstan in the global energy balance”. Both speeches were delivered yesterday, on 2 October, at the opening of the Forum, during a plenary session headed “Age of transition. Future development of the energy industry”, moderated by Timur Kulibayev, Chairman of the KAZENERGY Association.

This is already the 7th edition of the Forum held in Astana, which testifies to the maturity and consistency of the project. However, it is no exaggeration to say that this Forum has greater significance than its predecessors. The reason for this is the global political and economic situation that has taken shape in the world over the past year and a half - the crises in a number of Arab countries and the growing tensions around the Persian Gulf, a region of vital importance for the global energy market. Other reasons are the consequences of the Fukushima nuclear disaster in Japan, which caused Tokyo to give up on nuclear energy, the situation in the eurozone, and, finally, continued turbulence in the global financial markets and stock exchanges. All these factors bring about new and long-term trends capable of seriously reformatting the global energy market. Ensuring its stable development calls for a broad discussion of all the problems mentioned above, and where better to achieve this than the Astana-based KAZENERGY Forum platform, authoritative and politically unbiased?

The latter characteristic of the Forum – its unbiased nature – is clearly confirmed by the fact that its official participants include prominent Western European political figures (José María Aznar, former Prime Minister of Spain) and US businesspeople (Mark W. Albers, Senior Vice President of ExxonMobil) appearing alongside Iranian administrators. For example, working on one of the KAZENERGY Forum discussion panels is Hossein Esmaeli Shahmirzadi, General Director of the Department of Europe, America and Caspian Sea Neighbouring Countries of the Ministry of Petroleum of Iran. The broad geographical range and the significance of the topics reviewed at the Forum is illustrated by the participation of Dr Shashi Tharoor, Member of India’s Parliament (Lok Sabha) and UN Under-Secretary-General for Communications and Public Information from 2001-2007, on the very first day of the Forum.

The importance traditionally attached to this event in Kazakhstan is demonstrated by both its general media coverage, consistently attentive and positive, and the line-up of officials taking part in the Forum personally or indirectly. Illustrating this, the KAZENERGY Forum was opened with a welcome address by Serik Akhmetov, Prime Minister of Kazakhstan.

During the Forum, delegates from over 50 countries will have an opportunity to discuss various aspects of energy-related topics. Future development of the energy industry; the role of the oil and gas sector in shaping a sustainable energy future; oil and gas sector development in an environment of newly-established integration unions; environmental security and energy efficiency; energy of the future: securing global sustainable development – these are just some of the Forum’s sessions. Moreover, they will be held in cooperation with authoritative international organisations such as EXPO-2017, the International Energy Agency and IHS-CERA. The Forum also incorporates a series of thematic round tables offering participants an overview of the latest amendments to the oil and gas legislation of Kazakhstan, along with discussing finance solutions for companies operating in this sector of Kazakhstan’s economy. Issues of training managerial staff for energy companies and one of the essential tasks of recent years – developing the Extractive Industries Transparency Initiative in Kazakhstan and global experience of developing the production and use of shale gas – will also be discussed in a round table format, moderated by Nurlan Sauranbayev, Vice Chairman of the National Board of Interested Parties and Vice Minister of Industry and New Technologies of Kazakhstan. The round table on attracting funds will be moderated by Jorge Martinez, Head of Oil and Gas, Asia-Pacific at HSBC.

Separate presentations on crucial issues of the future of Kazakhstan’s energy sector were delivered by Tim Miller, General Director of Tengizchevroil, and Pierre Offant, Chairman and Managing Director of NCOC. The first discussed Tengizchevroil’s 20 years of sustainable development experience, and the second the Kashagan Project as a key point of growth of the energy future of Kazakhstan.

The extensive first day of the Forum was crowned with a fine evening reception, at which the results of the Ar-Namys National Contest for energy sector companies were announced. The contest aims to identify the best achievements in corporate social responsibility (CSR) in the oil/gas and energy industries and to raise public awareness of them. Jambulat Sarsenov, General Director of the KAZENERGY Association, congratulated the winners and handed out memorable awards: Sustainable Social Attitude – Tengizchevroil, LLP; Environmental Protection – North Caspian Operating Company (NCOC); Best Social Innovation Project – The programme of Social Partnership - ARAI, Lukoil Overseas Service B.V., Astana; and, finally, Managerial Staff Training and Development – Pavlodar Oil Chemistry Refinery.

For more about the 7th KAZENERGY 2012 Eurasian Forum, please visit kazenergyforum.com.

UNIFYING TRADITION AND STYLE

Yesterday on 3 October, a gala reception staged in the ballroom of the five-star Intercontinental Almaty Hotel brought together around a thousand exhibitors to celebrate the opening of the exhibition.

As always, a broad palette of music and dance genres for all the guests had been prepared by the Kazakhstan side. This time, guests of this informal gathering could find out about the culture and customs of the Kazakh people and get into the spirit of the generous and hospitable land of Kazakhstan. At the entrance to the ballroom, all the participants of the gala reception were met by a guard of honour: sarbaz warriors in beautiful traditional dress, who warmly welcomed the guests. The reception featured an ethnic village decorated with a mini yurt, lending an imitable national flavour to the party atmosphere. The guests were able to enjoy the Alasha dancing group and Inju instrumental and vocal trio shows, as well as appreciating the high class of a live performance by Dostar.

The awards ceremony to present ‘For Longstanding Cooperation with the Exhibition’ certificates to KIOGE 2012 exhibitors was the central event of the reception.

Awards For Longstanding Support
  • Jumo GmbH & Co. KG
  • NETZSCH Pumpen & Systeme GmbH
  • Sharjah Oxygen Company
  • RG Petro-Machinery (Group) Co. Ltd
  • China National Petroleum Corporation (CNPC)
  • Sercel
  • Tek Know Holding
  • NC KazMunayGas JSC
  • Tengizchevroil Ltd
  • Kazgiproneftetrans, EC, Llp
  • Karachaganak Petroleum Operating B.V.
  • NIPIneftegaz JSC
  • Caspian Pipeline Consortium-K JSC
  • TMK
  • HMS Group
  • Russneft, Oil Company, JSC
  • Transneft JSC


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