Kazakhstan is considering a number of measures to support oil companies

Vice-Minister of Energy of Kazakhstan Asset Magauov announced about it today in May 18 during the  briefing in the Central communications service,  the press service of the Ministry of Energy of Kazakhstan reports.

According to Magauov, the Ministry of Energy has collected and is working with interested state agencies on a package of proposals for measures to support the oil and gas industry.  This package includes 60 items of tax, environmental and other administrative measures.

Based on the results of the review, the state authorities supported measures to:

1) accelerated consideration at the Interdepartmental Commission of newly received applications of subsoil users to classify deposits as low-profitable and high-viscosity, in order to obtain benefits;

2) granting subsoil users the right to attract suppliers of procurement of goods, works and services without holding tenders at exploration stage (except for acquisition by subsoil users and their contractors of procurement of goods, works and services used in conducting operations on trial exploitation of a deposit (a set of deposits) of hydrocarbons during the exploration period;

3) working out mechanisms to reduce risks of good faith subsoil users on holding liable for violations by their contractors the Rules of procurement of goods, works and services by subsoil users and their contractors used in operations for the exploration or production of hydrocarbons and uranium;

4) consideration of adequate measures of economic incentives in connection with the planned adoption of a new Environmental code, which entails significant costs for enterprises to meet the new requirements;

5) providing for the adjustment of existing environmental protection action Plans for 2020 with the possibility of postpone to the next year;

6) postponing the implementation of natural management conditions included in the current permits for emissions into the environment until the end of 2021.

7) postponing Work programs - the Government of the Republic of Kazakhstan has instructed the Ministry of Energy together with interested ministries to work out the possibility of postponing the terms of fulfillment of contract and license obligations on requests from subsoil users for 2020, as well as work programs for subsequent years without applying penalties.

- Some of the proposed measures were already met at the time of discussion or were understood by the relevant state agencies. For the remaining items, work to analyze the effectiveness and relevance of the crisis situation in the oil and gas industry is underway. Measures that are not anti-crisis, contradicting the provisions of the Code "On subsoil and subsoil use", as well as other justifications of state bodies were not supported, - said Magauov.

Unofficial translation