One of the most serious environmental and economic problems connected with oil operations in Kazakhstan is the refusal to flare associated and natural gas in fields and the transition to its processing. Even in the recent past, gas flaring has been a part of the process of oil companies in Kazakhstan and occurred in almost all fields.
With the introduction in 1999, and then in 2004 and 2005, of amendments to the Law "On Oil", dated 28 June 1995, associated gas flaring was prohibited, except for a few cases mentioned in the Law.
«GRATA» Law firm has honor to submit you the information on the review of the project of the Caspian Energy Hub, the regional scale center which encompasses energy-related allied services. We hope that our information review can be useful for your company.
s a rule, those activities, which are focused on production, processing, consumption and sale of natural resources, demand special attention, taking into account specific regulations applying to this industry.
Over the years of independence, Kazakhstan has developed pretty efficient regulatory base for subsoil use in accordance with the international standards.
Kazakhstan is well known for its substantial oil and gas reserves. Currently, there are more than 200 oil and gas fields in Kazakhstan and more to follow. The successful exploration and development of the fields requires significant initial capital investments which could be obtained via internal or external debt financing.
New Aspects in Transactions on the Transfer of the Subsoil Use Right under the New Law of the Republic of Kazakhstan ‘On Subsoil and Subsoil Use’#2 (68), April 2011 special issue
Despite the strengthening of the requirements to the obtaining of an approval of a competent authority to commit transactions on the transfer of subsoil user rights, including by the transfer of shares (participatory interests) in a legal entity that holds the subsoil use right, as well as the pre-emptive right of the Republic of Kazakhstan to the transferred subsoil use right, shares (participatory interests) in a subsoil user or legal entities that may directly or indirectly govern the decisions of subsoil users, subsoil use is one of the high priority area for investors.
Quite shortly on April 29, 2011 Almaty will host the Third Annual Forum of Subsurface Users of the Republic of Kazakhstan. GRATA Law Firm has been the mastermind and the organizer of this major business and social event over the last three years. In an interview to our magazine our guest Mr. Almat Daumov, Director, GRATA Law Firm Office in Almaty, will dwell upon the forthcoming Forum and many related issues.
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.