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Subsoil users will have the right to refuse lossmaking drilling, while avoiding fines. The corresponding amendments to the subsoil code were adopted in the first reading in the Mazhilis. The document was developed by deputies to attract investment in the industry. This is a request from the President of the country. Kazakhstan must conduct large-scale geological research and find mineral deposits in fields with an area of more than 2 million square meters by 2026, says Khabar 24 correspondent Sabina Balashkina.
Time consuming procedures for various state examinations, administrative barriers and paperwork - all this prevents subsoil users from starting exploration of deposits as early as possible. According to experts, there are cases when companies sign a contract with the state, but can’t start geological research right away. Some procedures may be duplicated, so the project approval process takes more than one year.
Dastan Soltybekov, representative of an oil producing company:
- We received our first exploration block in December 2020. But real work began only 2 years later. Why does it take so long? Most of the time was spent on paperwork, that is why our main proposals to the subsoil code to compress these deadlines. Why, during exploration work, should the subsoil user once again be burdened with unnecessary approvals? In our opinion, everything should be simplified. It will be easier for subsoil users to work with deposits. They want to be allowed to drill during the preparatory period. They plan to add the rule to the subsoil code. In the first reading, Majilismen approved a number of innovations. In particular, it is proposed to allow oil producing companies to abandon unpromising well drilling. And an important point: the state will no longer fine you for this. At the same time, other measures are being taken into consideration.
Dyusenbay Turganov, deputy of the Mazhilis of the Parliament of the Republic of Kazakhstan:
- An accelerated transition to geological exploration is being introduced, taking into account the introduction of a notification procedure when developing projects, as well as the optimization of administrative procedures when carrying out subsoil use operations, including state examination of project documents in the field of hydrocarbons. Deputies claim that the bill will reduce the time required to conduct all kinds of examinations by 8 or even 12 months. And also eliminate administrative costs for procedures by more than 2 times. The processing time will also speed up; from now on it will take no more than 50 days.
Askhat Khasenov, Vice Minister of Energy of the Republic of Kazakhstan:
- In fact, all of this is already covered in the Code on Subsoil and Subsoil Use in Article 130. That is, when a subsoil use contract is concluded, it has an obligation to supply the domestic market with oil and gas. This obligation exists, it does not go away and is not affected within the framework of this code.
Sabina Balashkina, correspondent:
- More than 80 oil producing organizations operate in Kazakhstan today. But for the last 5 years they have been suffering losses. During this period, oil production fell by almost 20%. There is a way out, experts say. To compensate for losses, it is necessary to conduct large-scale geological exploration and explore as many new deposits as possible.
Authors: Sabina Balashkina, Askhat Karakoishiev.
Source: https://24.kz/ru/news/social/item/617510-nedropolzovatelej-nadelyat-novymi-pravami
Presentation of a certificate to the top 30 young executives in the oil and gas industry. PetroCouncil Association, September 22nd, Atyrau
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