Law of Kazakhstan No. 271-V 3PK On introduction of amendments and additions to certain legislative acts on subsoil use matters
29 Dec 2014
On 29 December 2014 the Law of the Republic of Kazakhstan No. 271-V 3PK “On introduction of amendments and additions to certain legislative acts on subsoil use matters” was adopted. It will become effective on 11 January 2015. The amendments are primarily aimed at attracting more investments in the extracting industry by liberalizing and simplifying previous rules.
Some key changes include limiting the state's preemptive right to acquire exploration and production rights to strategic deposits and areas only, which will in turn be approved and listed by the government (the state will no longer be able to use discretionary power to designate a deposit of strategic value). In addition, breach of obligations by an investor contained in the project documents only will no longer be sufficient ground for termination of the subsoil use contract by the Ministry of Energy. Time limits for curing physical/financial/other contract breaches by an investor will no longer be determined on a case-by-case basis by the Ministry of Energy but will now be defined by the law. The time necessary for the development and approval of project documents will be extended. Many expert reviews of draft contracts as well as project documents at the exploration stage have been partially or entirely abolished. Oil spills are categorized and cleaning activities for the most difficult spills are to be undertaken by specialized companies only.
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Type:
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Treatment and operation (Other)
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Promotion and facilitation (Investment facilitation )
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Industry:
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Primary (Mining and quarrying)
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Primary (Mining and quarrying)
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