Oil and Gas Trade Misison to Atyrau, Kasakhstan

Oil and Gas Trade Mission

Atyrau, Kazakhstan

April 7-10, 2009

MISSION DESCRIPTION

The United States Department of Commerce, International Trade Administration, U.S. and Foreign Commercial Service is organizing a three-day Oil and Gas Equipment and Services Mission to be held in conjunction with the 8th North-Caspian Regional Exhibition (Atyrau Oil and Gas), April 8-10, 2009 in Atyrau, Kazakhstan. Representatives of U.S. firms in the oil and gas sectors in the following product areas are encouraged to participate: offshore/onshore oil and gas drilling and production equipment; turbines, compressors and pumps for pipeline applications; measurement and process control equipment for pipeline applications; industrial automation, control and monitoring systems for refineries, gas processing and petrochemical plants, seismic processing and interpretation, petroleum software development, sulfur removal and disposal technologies, well stimulation, and field abandonment services. Mission participants will be introduced to international agents, distributors, and end-users. Their capabilities and services will be evaluated to meet each participant’s expectations.

The mission will include:

Meetings with major international exploration and production companies and integrated service providers operating in Kazakhstan.
Customized matchmaker appointments with local firms identified as potential business partners.
Site visits to facilities of commercial interest.
Participation in a seminar presentation to a local industry audience.
Visit to the 8th North-Caspian Regional Exhibition.
Promotion in a catalog show (Product Literature Center) at the 8th North-Caspian Regional Exhibition, managed by the U.S. and Foreign Commercial Service.

COMMERCIAL SETTING

Kazakhstan has the Caspian Sea region's largest recoverable crude oil reserves and accounts for approximately two-thirds of the roughly 1.8 million barrels per day (bpd) currently being produced in the region. The Government of Kazakhstan and foreign investors continue to focus heavily on the hydrocarbons sector, which so far has received approximately 60% of the estimated $58 billion in foreign direct investment in Kazakhstan since 1991, and makes up approximately 53% of its export revenue. Existing oil extraction sites offshore in the North Caspian, combined with onshore fields currently under development, mark Kazakhstan as a potentially major near-term oil exporter. By 2015, Kazakhstan’s daily output is expected to total 2.6 million bpd. As a result, foreign investors are increasing their focus in Kazakhstan’s energy infrastructure, including oil transportation routes such as the Baku-Tbilisi-Ceyhan pipeline.

Oil industry sources estimate that Kazakhstan could eventually attract up to $140 billion of foreign investment in its oil infrastructure. Industry experts and the U.S. and Foreign Commercial Service in Almaty estimate that the current market for oil and gas field equipment and services will grow to $6.8 billion in 2008, and will continue growing at 15-30% annually over the next three years. Kazakhstan as yet has no experience in offshore production and operations. This experience gap offers many opportunities for U.S. service companies in rig work, support infrastructure, and environmentally sensitive technologies. The Caspian Basin's oil-bearing formations are generally quite deep (15,000 feet), under considerable pressure, and often contain a high degree of sulfur and other contaminants, making special drilling and processing equipment necessary. Additionally, U.S. oil and gas field equipment suppliers have the potential for solid growth over the next decade as new fields are brought on-stream and secondary recovery methods are introduced to existing deposits.

Kazakhstan’s oil and gas market provides excellent opportunities for U.S. companies within the following areas: oil and gas well development; field operation; offshore exploration/exploitation equipment; gathering, treatment, transportation and storage of oil, petrochemical products and natural gas; pumps, fittings and valves; gas detection and monitoring systems; oil and gas field chemicals; pipeline construction equipment, and pipeline corrosion controls.

MISSION GOALS

Participation in the mission will allow representatives of American companies, who are responsible for business activity in Eurasia, to identify profitable opportunities and new markets for their respective companies and to increase their export potential. These Eurasia representatives will have an opportunity to find potential partners, agents and distributors, and joint venture partners, and gain additional market knowledge for future expansion.

MISSION SCENARIO

The mission will include meetings with major international firms operating in Kazakhstan; matchmaking appointments with local firms, visits to sites of commercial interest; a seminar allowing participants to present their products and technologies to the local oil and gas business community; a visit to the 8th North-Caspian Regional Exhibition, to be held April 7-10, 2009; and participation in a U.S. Product Literature Center at the trade show. Held annually, the North-Caspian Regional Exhibition brings together more than 140 international companies involved in every aspect of the oil and gas sector. The event, which in 2007 attracted over 3,500 industry specialists from more than 30 countries, can serve as an excellent vehicle for U.S. firms wishing to promote their goods and services in Kazakhstan and the region.

MISSION TIMETABLE

Tuesday, April 7, 2009

Arrive Atyrau
Country Briefing and Mission Overview
Amcham Sundowner Networking Reception

Wednesday, April 8, 2009

Experienced firms that have been operating in the market for several years, as well as project operators, will provide market knowledge and “how to” information. Meetings may include representatives from the following companies:

Agip KCO
TengizChevroil
Halliburton
Parson Fluor Daniel
Baker Hughes
Schlumberger

Thursday, April 9, 2009

Visit to the Atyrau Oil and Gas Exhibition floor
Matchmaking Meetings at the hotel or trade show
Mission Networking Reception

Friday, April 10, 2009

Follow-up with catalog show leads
Mission seminar (half day) presented by participants to local companies and suppliers
No-host Mission wrap up dinner

Saturday, April 11, 2009

Depart Atyrau

PARTICIPATION REQUIREMENTS

All parties interested in participating in the Commercial Service Oil and Gas Trade Mission to Atyrau, Kazakhstan must complete and submit an application package for consideration by the Department of Commerce. All applicants will be evaluated on their ability to meet certain conditions and best satisfy the selection criteria as outlined below. A minimum of 8 and a maximum of 15 companies will be selected to participate in the mission from the applicant pool. U.S. companies already doing business in Kazakhstan as well as U.S. companies seeking to enter the Kazakhstan market for the first time may apply.

Fees and Expenses:

After a company has been selected to participate on the mission, a payment to the Department of Commerce in the form of a participation fee is required. The participation fee will be $3,800 for a small or medium-sized enterprise (SME)¹ and $6,250 for large firms. The fee for each additional firm representative (SME or large firm) is $300. Expenses for travel, lodging, most meals, and incidentals will be the responsibility of each mission participant. Delegation members will be able to take advantage of Embassy rates for hotel rooms.

Conditions for Participation:

An applicant must submit a completed and signed mission application and supplemental application materials, including adequate information on the company’s products and/or services, primary market objectives, and goals for participation. If the Department of Commerce receives an incomplete application, the Department may reject the application, request additional information, or take the lack of information into account when evaluating the applications.
Each applicant must also certify that the products and services it seeks to export through the mission are either produced in the United States, or, if not, marketed under the name of a U.S. firm and have at least 51 percent U.S. content of the value of the finished product or service.

Selection Criteria for Participation: Selection will be based on the following criteria:

Suitability of the company’s products or services to the Kazakhstani oil and gas equipment and services market
Applicant’s potential for business in Kazakhstan, including likelihood of exports resulting
from the mission
Consistency of the applicant’s goals and objectives with the stated scope of the mission

Referrals from political organizations and any documents containing references to partisan political activities (including political contributions) will be removed from an applicant’s submission and not considered during the selection process.

TIMEFRAME FOR RECRUITMENT AND APPLICATIONS

Mission recruitment will be conducted in an open and public manner, including posting on the Commerce Department trade missions calendar -- http://www.ita.doc.gov/doctm/tmcal.html -- and other Internet websites, publication in domestic trade publications and association newsletters, direct outreach to internal clients and distribution lists, posting in the Federal Register, and announcements at industry meetings, symposia, conferences, and trade shows. The mission will also be promoted by ITA Energy Team members in U.S. Export Assistance Centers.

Recruitment for the mission will begin immediately and conclude no later than February 1, 2009. The mission will be open on a first come first served basis. Applications received after February 1, 2009, will be considered only if space and scheduling constraints permit.

CONTACT INFORMATION

Stuart Schaag, Senior Commercial Officer or
Azhar Kadrzhanova, Commercial Specialist
U.S. and Foreign Commercial Service
U.S. Embassy Branch Office
Samal-2, 97 Zholdasbekov St.
Samal Towers Building, Almaty
Tel: 7-727-250-4850
Fax: 7-727-250-4967
Email: Stuart.Schaag@mail.doc.gov and
Azhar.Kadrzhanova@mail.doc.gov

Delilah DeSouza
International Trade Specialist/Deputy Energy Team Leader - Oil and Gas
New Orleans U.S. Export Assistance Center
2 Canal St., #2710, New Orleans, LA 70130
Phone: 504-915-3301; Fax: 504-589-2337
Email: delilah.desouza@mail.doc.gov

David Royce
Senior International Trade Specialist
North Texas U.S. Export Assistance Center
1450 Hughes Rd Suite 220
Grapevine, TX 76051
Phone: 817-310-3744; Fax: 817-310-3757
Email: david.royce@mail.doc.gov

¹ An SME is defined as a firm with 500 or fewer employees or that otherwise qualifies as a small business under
SBA regulations (see http://www.sba.gov/services/contracting opportunities/sizestandardstopics/index.html). Parent companies, affiliates, and subsidiaries will be considered when determining business size. The dual pricing reflects the Commercial Service’s user fee schedule that became effective May 1, 2008 (for additional information see http://www.export.gov/newsletter/march2008/initiatives.html).