Thousands at Kashagan may lose jobs

In Mangistau Oblast because of shutdown at Kashagan field thousands of workers may lose their jobs, azh.kz reports, citing channel 31.

Work scope in subcontracting companies has decreased 10 times. The authorities are literally asking oil extracting companies to keep workplaces as long as possible.

The government officials are admitting: currently only one company can keep workplaces and that is Tengizchevroil (TCO). A memorandum of cooperation between TCO and Mangistau local government was signed last year. But in order to get even a small work order from this company, one should re-train its employees.

"Considering high TCO requirements to personnel, we put workforce through training to prepare highly qualified specialists, also pipeline welders," says the Deputy Head of Innovative Development Department Goulzhan Baidullina.

Half a year ago a pipeline at Kashagan field started to show signs of strain two weeks after start-up. Following an inspection experts concluded that practically the whole length of a 95-kilometer pipeline needed replacement and that must take at least two years.

Experts say each idle day at Kashagan will cost 7.5 million dollars, at that 50 billion dollars have already been invested into the project.

For environmental damage Agip KCO and NCOC have been obliged to pay 134 billion tenge of fines.

Meanwhile, three companies - ERSAI, Keppel Kazakhstan and Kazakhstan Caspian Offshore Industries are in difficult situation.

Their work scopes have fallen from 40% to 4%. Two of the companies are completing their final work order – a construction of a barge for the oil company, but what will they do after completion, the officials can't say.