Archive
#1 (67), February 2011
Politics
The Autumn of the Patriarch. Preschedule presidential elections will be held in Kazakhstan
After adoption of the law «On the leader of the nation» in the last year, a natural question has arisen in the Kazakhstan’s political elite on expediency of participation of the president, already in a new status, in the next presidential elections. The long-term legitimate mandate of “the leader of the nation” has obviously come into contradiction with the necessity to get the next formal mandate of trust during the election campaign.
Result of the Year
KMG: Results and Plans
JSC National Company KazMunayGas (KMG) has summarised preliminary results of its activity in 2010. The main accomplishment is that in the last year EIG has exceeded all main operational and financial indices continuing to be one of the backbone elements in the country’s economy.
Projects
The Pre-Caspian Gas Pipeline Has Been Frozen
This forces Kazakhstan to more actively redirect its gas streams towards China
The estimates of Kazakhstan to earn money on the transit of Turkmen gas via the territory of Russia have not come true. At the same time it is clear that those volumes of gas which Kazakhstan planned to direct to the Pre-Caspian pipeline system for further flow to Europe will be developed in the opposite direction – to the southern neighbour, China.
The State and Prospects of Infrastructural Development on the Caspian Sea
By order of KazMunayGas, the Kazakh Institute of Oil and Gas has prepared and presented the final report on the project «Renewal of the complex plan for development of the coastal line of the Kazakhstan sector of the Caspian Sea» (KSCS). The initial complex plan was elaborated in 2005, however considerable changes occurred in recent years in the plans and projects for development of the Kazakhstan sector of Caspian Sea and creation of appropriate infrastructure. The data have changed on expected reserves and prospects for development of fields and structures in the Kazakhstan sector of the Caspian Sea, on the prospects of production, processing and transportation of hydrocarbons (in particular, the terms have been transferred of the start of oil production at the Kashagan field - for 2012 - the start of pilot commercial development). Also, a number of coastal infrastructural facilities in the Atyrau and Mangystau regions (in the area of Aktau, Bautino and Euryk) were built and put into operation. Now it is needed to specify the demand for additional facilities of coastal infrastructure in the Kazakhstan sector of the Caspian Sea (shipyards, metalware plants, etc.).
Expert Opinion
An Overview of Kazakhstan’s Mining and Hydrocarbons Sector and Some Observations on Entering the Market
The results are in and there is no doubt about it – as of 2010, Kazakhstan, the 9th largest country in the world, has joined the ranks of the mining giants. This is by no means a product of one or two lucky ore strikes by a bunch of “wildcatters” salivating over speedy profits and fame, but results rather from decades of hard work in the trenches. In Kazakhstan, miners, big and small, are now looking to dig more, drill deeper and tunnel faster; and perhaps unlike in the past, they now recognize that successful mining operations involve more than a few pans, a pick-up truck and some good contacts at the border.
Technology
Deepwater Gulf of Mexico to get rapid well-containment capability
ExxonMobil, with three other founding sponsors, announced that they will build a new containment system designed to capture up 100, 000 barrels of oil a day from a well blowout in water as deep as 10,000 feet
Presentation
The Award for Sustainable Development
Almost half of the whole volume of natural gas production and one-fifth of produced liquid hydrocarbons in the country belong to one of the Kazakhstan’s major oil and gas operators, Karachaganak Petroleum Operating B.V. (KPO). Today Karachaganak means thousands jobs, state-of-the-art technologies and weighty tax revenues. Participation of Karachaganak Petroleum Operating in social reorganisation of the Western Kazakhstan region continues to show an upward tendency. Till 2009, US$10 million were allocated annually on social projects. Due to this, hospitals, schools and houses were built, roads were repaired and gas pipelines were laid. From the past year, the amount of investments into social sphere has been doubled.
Oil Generals
The Discoverer
Sukhan Maksutovich Kamalov is an explorer and pioneer of the deposits in his native land – the Ural region. He is seventy five today. His glorious biography of a noted scientist, an excellent industrial executive and organizer became part of our country’s history.
Legislation
Issues on THE Unilateral Termination of Subsoil Use Contracts
Disputes in relation to the unilateral termination of subsoil use contracts (the ‘Contract’) form a substantial part of the litigated cases on the rights stipulated by the legislation on subsoil.
This is our brief review of judicial practice established under the Law of the Republic of Kazakhstan No. 2828 ‘On Subsoil and Subsoil Use’ dated 27 January 1996 (hereinafter referred to as the ‘Old Law’), with the aim of providing an analysis of the specific interpretations and applications of the legislation of the Republic of Kazakhstan by the courts in adjudicating civil cases of this category, description of problems that lead to the litigated cases, and our own opinion concerning the legality and legitimacy of certain judicial decisions.