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ORDER OF THE MINISTER OF ENERGY OF THE REPUBLIC OF KAZAKHSTAN

of June 11, 2018 No. 233

About approval of standard contracts on subsurface use

(as amended of the Order of the Minister of Energy of the Republic of Kazakhstan of 15.04.2022 No. 136)

According to Item 1 of article 36 of the Code of the Republic of Kazakhstan "About subsoil and subsurface use" PRIKAZYVAYU:

1. Approve enclosed:

1) the standard contract on exploration and production of hydrocarbons according to appendix 1 to this order;

2) the standard contract on hydrocarbon production according to appendix 2 to this order;

3) the standard contract on production of uranium according to appendix 3 to this order.

2. Declare invalid the order of the Minister of Energy of the Republic of Kazakhstan of March 31, 2015 No. 260 "About approval of model contracts for investigation, production, the combined exploration and production of hydrocarbonic raw materials, uranium and coal" (registered in the Register of state registration of regulatory legal acts for No. 11527, published in information system of law of Ad_let on July 23, 2015).

3. To provide to department of subsurface use of the Department of Energy of the Republic of Kazakhstan in the procedure established by the legislation of the Republic of Kazakhstan:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days from the date of state registration of this order the direction it the copy in paper and electronic type in the Kazakh and Russian languages in the Republican state company on the right of economic maintaining "The republican center of legal information" of the Ministry of Justice of the Republic of Kazakhstan for official publication and inclusion in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

3) within ten calendar days after state registration of this order the direction it the copy on official publication in periodic printing editions;

4) placement of this order on Internet resource of the Department of Energy of the Republic of Kazakhstan after its official publication;

5) within ten working days after state registration of this order submission to Department of legal service of the Department of Energy of the Republic of Kazakhstan of data on execution of the actions provided by subitems 2), 3) and 4) of this Item.

4. To impose control of execution of this order on the supervising vice-Minister of Energy of the Republic of Kazakhstan.

5. This order becomes effective since June 29, 2018 and is subject to official publication.

At the same time subitems 7) - 9) Item 44 of the standard contract on exploration and production of hydrocarbons given in appendix 1 to this order, subitems 7) - 9) Item 38 of the standard contract on hydrocarbon production given in appendix 2 to this order are effective till January 1, 2024.

Minister of Energy of the Republic of Kazakhstan

K. Bozumbayev

It is approved

Minister of Finance of the Republic of Kazakhstan

June 8, 2018

 

___________________ B. Sultanov

It is approved

Minister of national economy of the Republic of Kazakhstan

June 13, 2018

 

 

___________________ T. Suleymenov

Appendix 1

to the Order of the Minister of Energy of the Republic of Kazakhstan of June 11, 2018 No. 233

The standard contract on exploration and production of hydrocarbons

The contract for exploration and production of hydrocarbons between the Republic of Kazakhstan, on behalf of which acts

__________________________________________________________ as competent authority

         (name of state body)

and

________________________________________________________________________________

           (First name, middle initial, last name physical person or name of the legal entity.

If subsoil users under the Contract are two and more persons, it is specified First name, middle initial, last name (name) of each person and the size of share in the right of subsurface use, belonging to each of such persons)

(further - the subsoil user), further jointly the referred to as Parties.

This contract on exploration and production of hydrocarbons is signed by the Parties "____" ____________ 20 ___ years according to

_______________________________________________________________________________

(the protocol of the commission on holding auctions on provision of the right

subsurface use on hydrocarbons or the decision of Competent authority on the conclusion

the contract for subsurface use with the national company in the field of hydrocarbons,

being the basis for the conclusion of the contract)

Preamble

In view of that:

1) according to the Constitution of the Republic of Kazakhstan subsoil is in state-owned property;

2) the Republic of Kazakhstan provides the subsoil plot in use on the bases, conditions and in the limits provided by the Code of the Republic of Kazakhstan "About subsoil and subsurface use" (further - the Code);

3) the subsoil user has intention, financial and technical capabilities rationally and effectively to carry out exploration and production of hydrocarbons on the subsoil plot;

4) the Government of the Republic of Kazakhstan determined competent authority and gave to him the right to the conclusion and execution of the Contract;

5) use of natural resources is performed according to the procedure, on conditions and in the limits set by the Code;

6) the Contract for subsurface use is the agreement, content, procedure for the conclusion which execution and the terminations are determined by the Code;

7) the Competent authority and the subsoil user agreed that the Contract will regulate their mutual rights and obligations in case of exploration and production of hydrocarbons

The competent authority and the subsoil user agree as follows:

Chapter 1. Subject of the contract

1. The Republic of Kazakhstan on behalf of Competent authority grants on the term established by the Contract to the subsoil user the subsurface use right, and the subsoil user shall at own expense and on the risk to perform subsurface use in accordance with the terms of the Contract and the Code.

2. The subsurface use right on the subsoil plot arises from the effective date the Contract.

3. On condition of observance by the subsoil user of provisions, stipulated by the legislation the Republic of Kazakhstan about subsoil and subsurface use and the Contract, the subsoil user has the right to perform exploration and production of hydrocarbons on the subsoil plot.

Chapter 2. Duration of the contract

4. The duration of the contract specified in Item 5 of the Contract is determined consistently fixed in it by the investigation period, the preparatory period (if necessary) and the production period.

5. The contract is signed for the term equal _____ years, and is effective to

"___" __________ _____ of year.

Note: in case of the conclusion of the Contract the initial duration of the period of investigation based on the notice on holding the auction or the decision of Competent authority on the conclusion of the contract for subsurface use with the national company in the field of hydrocarbons is specified.

In case of the subsequent prolongation in Item 5 of the Contract, in addition to the duration of the contract, duration of the prolonged investigation period, and also the preparatory period (in the presence) and the production period on each of subsoil plots specified in the Contract is specified.

Expiry date of the Contract is brought by Competent authority in case of registration of the Contract (supplement to contract).

6. The duration of the contract specified in Item 5 of the Contract can be extended by means of the conclusion by the Parties of supplements to contract in cases, procedure and on the conditions established by the Code for date of the conclusion of the Contract in cases:

1) prolongation of the period of investigation;

2) fixing of the preparatory period;

3) fixing of the period of production.

The duration of the contract is extended by competent authority on effective period of force majeure circumstances if the subsoil user produces the evidence of such circumstances according to the legislation of the Republic of Kazakhstan.

7. If within one contract for exploration and production of hydrocarbons several fields of hydrocarbons are found, for each of them the certain site and the period of production are enshrined in the contract.

At the same time in case of the expiration of the period of production on one of subsoil plots the contract for subsurface use continues the action only concerning the remained subsoil plots.

8. The duration of the contract specified in Item 5 of the Contract can be extended by means of the conclusion by the Parties of the supplement to contract or its statement in the new edition in case of prolongation of the period (periods) of production on the site (sites) of subsoil according to the procedure and on the conditions established by the Code for date of such prolongation.

If the Contract corresponds to this standard contract, in case of prolongation of the period of production between the subsoil user and Competent authority within one month from the date of decision making about prolongation the supplement to contract providing prolongation of the period of production and the obligation of the subsoil user on accomplishment of the work program specified in the subitem 1) of item 4 of article 120 of the Code and attached to the Contract as its integral part consists.

If the contract does not correspond to this standard contract, in case of prolongation of the period of production between the subsoil user and competent authority within two months from the date of decision making about prolongation the contract for hydrocarbon production in the new edition drafted according to the standard contract on hydrocarbon production is signed.

9. If the hydrocarbon production period within the Contract is established for the term of at least twenty years, in case of prolongation of the period of production of term of the contract are subject to reduction in compliance with the legislation of the Republic of Kazakhstan existing for date of such prolongation.

10. The contract becomes effective from the date of its registration in competent authority.

11. The renewal term is estimated from the date of registration of the contract if the parties do not approve other term.

Chapter 3. Subsoil plot borders

12. Spatial borders of the subsoil plot on which the subsoil user has the right to perform operations on investigation or hydrocarbon production according to the Contract are established in the appendix to the Contract which is its integral part.

For the purposes of preparation of the specified appendix:

1) initial spatial borders of the site of investigation or hydrocarbon production are determined by the contract for exploration and production or hydrocarbon production according to the management program the state fund of subsoil;

2) spatial borders of the site (sites) of investigation in case of prolongation of the period of investigation for the purpose of assessment of the found deposit (set of deposits) are determined by the contract for exploration and production of hydrocarbons according to the approved subsoil user and who received the positive decisions provided by this Code and other laws of the Republic of Kazakhstan of examinations by the amendment to the project of prospecting works providing assessment works of the found deposit (set of deposits);

3) spatial borders of the site (sites) of investigation in case of prolongation of the period of investigation for the purpose of test operation of the found deposit (set of deposits) are determined by the contract for exploration and production of hydrocarbons according to the approved subsoil user and who received the positive decisions provided by this Code and other laws of the Republic of Kazakhstan of examinations by the project of test operation;

4) spatial borders of the site (sites) of hydrocarbon production (except for the upper bound) when fixing the site (sites) of production after completion of the period of investigation are determined by the contract for exploration and production of hydrocarbons according to the approved subsoil user and the report on calculation of geological inventories which received the positive decision of state examination of subsoil;

5) spatial borders of the subsoil plot requested for the purposes of increase in the initial subsoil plot under the contract for exploration and production or hydrocarbon production are determined in coordination with authorized body in the field of studying of subsoil (regarding svobodnost of the required subsoil plot from subsurface use) according to the approved subsoil user and who received the positive decisions provided by this Code and other laws of the Republic of Kazakhstan of examinations by the amendment to the relevant basic project document establishing expected contours of the found deposit (set of deposits);

6) spatial borders of the site of investigation or hydrocarbon production remaining with the subsoil user after reduction of the subsoil plot by means of return to the state according to article 114 of the Code are determined by the subsoil user;

7) spatial borders of sites of investigation or production in case of allocation of the subsoil plot according to article 115 of the Code (the main and allocated subsoil plots) are determined by the contract for exploration and production of hydrocarbons:

in case of allocation of part of the site of investigation - according to approved as the subsoil user and received the positive decisions the amendments to the project of prospecting works providing work according to the corresponding found deposits (sets of deposits) on the basic provided by this Code and other laws of the Republic of Kazakhstan of examinations and allocated subsoil plots;

in case of allocation of the site of investigation or production - based on the data on the respective subsoil plots specified in the contract for exploration and production from which allocation is made.

13. Several subsoil plots can be fixed in the cases and procedure established by the Special part Kodeksa in the contract for exploration and production of hydrocarbons by means of modification and amendments.

14. Transformation of the subsoil plot is made according to the procedure and on the bases established in Articles 113, of 114, 115 Codes by means of the conclusion of the supplement to contract.

15. Return of the subsoil plot (if more than one subsoil plot are enshrined in the Contract) or its part is performed according to the procedure, provided by the Code, by means of the conclusion of the supplement to contract.

Chapter 4. Rights of Competent authority

16. The competent authority has the right:

1) on early termination of operation of the Contract in the cases and procedure provided by paragraph 3 of the Code;

2) to demand change and (or) amendment of terms of the contract in cases and procedure, stipulated in Article 106 Codes;

3) on control of observance by the subsoil user of terms of the contract according to the procedure, established according to the Rules of control of observance of conditions of contracts for subsurface use, including production sharing agreements approved by the order of the Minister of Energy of the Republic of Kazakhstan of April 26, 2018 No. 142 (it is registered in the Register of state registration of regulatory legal acts for No. 16893);

4) to make the decision on suspension of transactions on subsurface use on the border subsoil plot before reaching an agreement with such state with which the Republic of Kazakhstan has no relevant international agreements according to the procedure and cases, stipulated in Article 149 Codes.

Chapter 5. Obligations of Competent authority

17. On condition of observance by the subsoil user of provisions, stipulated by the legislation the Republic of Kazakhstan about subsoil and subsurface use and the Contract, the Competent authority shall in cases, procedure and on the conditions established by the legislation of the Republic of Kazakhstan on subsoil and subsurface use for date of the conclusion of the Contract:

1) to extend the duration of the contract in cases of prolongation of the period of investigation, and also fixing of the preparatory period and period of production;

To enshrine 2) in the Contract the site (sites) of production;

3) to perform transformation of the subsoil plot.

Chapter 6. Subsoil user's rights

18. On condition of observance of provisions, stipulated by the legislation the Republic of Kazakhstan about subsoil and subsurface use and the Contract, the subsoil user has the right:

1) on paid basis to use subsoil within the allocated subsoil plot in the entrepreneurial purposes;

To use 2) at discretion results of the activities, including the extracted hydrocarbons if other is not provided by the Code or the Contract;

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