News 2016
January 2016Benefits
In Kazakhstan there are 6 low-margin oil and gas fields, which are developed by five companies with Chinese participation. The decree of the government of the Republic of Kazakhstan dated December 30, 2015 “On amendments to the decree of the government of the Republic of Kazakhstan dated June 13, 2014 no. 651 “On approval of the list of fields (groups of fields, parts of a field) with solid commercial minerals, except for commonly used, classified as low-margin”, and dated June 18, 2014 no. 673 “On approval of the list of fields (groups of fields, parts of a field) with hydrocarbon crude, classified as low-margin, high-viscosity, inundated, marginal and worked out” is published in official mass media.
According to this document, following oil and gas fields were included into the list of fields (groups of fields, parts of a field) with hydrocarbon crude, classified as low-margin, high- viscosity, inundated, marginal and worked out:
- Kenkiyak (pre-salt), located in the Temirskiy district of the Aktobe region, JSC “CNPC-AktobeMunaiGas”;
- Kumkol, located in the Kyzylorda region, JSC “ PetroKazakhstan Kumkol Resources”;
- Kumkol and East Kumkol, located in the Kyzylorda region, CJSC “Turgai Petroleum”;
- Sazankurak, located in the Isatay district of the Atyrau region, “Sazankurak” LLP;
- Arman, located in the Mangystau district of the Mangystau region, “Arman” JV LLP.
Also this list includes 4 oil and gas fields of “South-Oil” LLP: Eszhan, Kalzhan, North Akshabulak, East Akshabulak, located in the Karaganda and Kyzylorda regions. As is well known, during the production from the fields, included in this list, relief for the payment of mineral extraction tax (MET) is applied. In particular, MET rate is reduced, on average, up to 0,5%-1,5%. In accordance to current Tax Code of the Republic of kazakhstan, MET rates on crude oil, including gas condensate, depending on the annual volume of production, range from 5% to 18%. The decree takes effect from the day of its signing.