of June 11, 2018 No. 233
About approval of standard contracts on subsurface use
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;
4) the standard contract on exploration and production of hydrocarbons on difficult projects according to appendix 4 to this order;
5) the standard contract on hydrocarbon production on difficult projects according to appendix 5 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 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 article 6 of the Constitution of the Republic of Kazakhstan subsoil belongs to the people of the Republic of Kazakhstan, on behalf of the people the property right performs the state;
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 legislation of the Republic of Kazakhstan on subsoil and subsurface use;
6) the Contract for subsurface use is the agreement which contents, execution and the termination are determined according to the Code;
7) the Republic of Kazakhstan on behalf of 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 Republic of Kazakhstan on behalf of Competent authority and the Subsoil user agree as follows:
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.
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 the 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 consists.
If the contract does not correspond to the 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.
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.
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.
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.
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;
To construct 3) in the territory of the subsoil plot, and in case of need on other parcels of land provided to the subsoil user in accordance with the established procedure, the objects of the production and social sphere necessary for implementation of works and also based on agreements to use objects and communications public both in the territory of the subsoil plot, and out of its limits;
4) to appoint the operator under the Contract;
5) ahead of schedule to stop transactions on subsurface use by means of return of all site of investigation or production according to the procedure and on the conditions established by the Code;
6) during the period of investigation and taking into account the restrictions set by the Code to carry out any kinds of works on investigation of hydrocarbons in the territory;
7) during the preparatory period to perform development, approval and carrying out provided by the Code and other laws of the Republic of Kazakhstan of project appraisals of mining, and also (if necessary) arrangement of the field of hydrocarbons;
8) during the period of production to perform production of any hydrocarbons, and also to carry out additional appraisal (additional exploration) of the site of production for the purpose of refining of geological structure and reserves of the filed of hydrocarbons;
9) at any time before the expiration of the period of investigation or the period of production to make preservation or liquidation of the separate technological objects used when carrying out transactions on subsurface use including constructions, the equipment, wells and other property;
10) to submit applications for prolongation of the period of investigation, and also for fixing of the site of production and the period of production or the preparatory period;
11) to submit applications for prolongation of the period of production;
12) to submit applications for transformation of the subsoil plot;
13) to perform passing extraction of underground waters in case of hydrocarbon production without receipt of special permissions or licenses. Further use of in passing extracted underground waters is performed according to the water and ecological legislation of the Republic of Kazakhstan;
14) to challenge legality of early termination competent authority of operation of the Contract in court within two months from the date of receipt of the adequate notice by it;
15) to sign the agreement on stimulation of entrepreneurship in the field of hydrocarbons on voluntary basis directed to support of local producers according to article 28-1 of the Code;
16) to refuse the drilling of well provided by the work program of the contract for exploration and production in case of simultaneous observance of the conditions specified in article 123 of the Code.
19. The subsoil user shall use the subsoil plot only for the purpose of, provided by the Contract.
19-1. The subsoil user constitutes the project of prospecting works within one year from the date of registration of the Contract.
The project of prospecting works after its creation is subject to state examination of basic project documents in the sphere of subsurface use on hydrocarbons according to article 140 of the Code.
19-2. In case of approach of the termination of the duration of the contract, stipulated in Item 5 Contracts, the subsoil user shall stop any transactions on subsurface use, except for transaction, connected with preservation or liquidation of technological objects and consequences of subsurface use.
20. In case of detection of the geological, geomorphological and hydrogeological objects representing according to the legislation of the Republic of Kazakhstan in the field of especially protected natural territories special ecological, scientific, historical and cultural and recreational value, the subsoil user shall stop without delay works on the site and in writing notify on it authorized body on studying of subsoil and authorized body in the field of environmental protection.
21-1. In case of prolongation of the period of investigation according to Item 3-2 of article 117 of the Code the subsoil user shall:
1) to use the means placed in bank of the second level in compliance by part two of Item 3-2 of article 117 of the Code it is exclusive on accomplishment of the prospecting works provided by the work program in case of prolongation of the period of investigation according to appendix 1-1 to the Contract;
2) if the means specified in the subitem 1) of this Item were used on the purposes which are not relating to accomplishment of the prospecting, provided by the work program on accomplishment prospecting works according to appendix 1-1 to the Contract to pay upon the demand of competent authority in the government budget the equivalent amount.
21. The subsoil user during the investigation period in addition develops the work program containing amounts, the description and terms of performance of works during investigation and conforming to the minimum requirements on amounts and work types on the subsoil plot during investigation and applies it to the contract for exploration and production as its integral part.
22. During the production period, since second year, the subsoil user shall annually:
1) to perform financing of training of the Kazakhstan personnel in the amount of one percent from the costs for production incurred by the subsoil user during hydrocarbon production following the results of previous year according to the Rules of financing of training of the Kazakhstan personnel in the amount of one percent from the costs for production incurred by the subsoil user during hydrocarbon production and (or) uranium following the results of previous year approved by the joint order of the Minister of Energy of the Republic of Kazakhstan of May 15, 2018 No. 185 and the Minister of Education and Science of the Republic of Kazakhstan of May 17, 2018 No. 211 (it is registered in the Register of state registration of regulatory legal acts for No. 17020);
2) to perform financing of research, scientific and technical and (or) developmental works in the amount of one percent from the costs for production incurred by the subsoil user during hydrocarbon production following the results of previous year according to Rules of financing of research, scientific and technical and (or) developmental works as the subsoil users during hydrocarbon production and uranium approved by the joint order of the Minister of Energy of the Republic of Kazakhstan of May 31, 2018 No. 222 and the Minister of Education and Science of the Republic of Kazakhstan of May 31, 2018 No. 244 (it is registered in the Register of state registration of regulatory legal acts for No. 17096);
3) to perform financing of social and economic development of the region and development of its infrastructure in the amount of one percent from investments under the Contract during hydrocarbon production following the results of previous year. At the same time on the exhausted field of hydrocarbons financing of social and economic development of the region and development of its infrastructure is performed in the amount of unused balance of the amount, the stipulated in Item 23-1 Contract for implementation of additional investments into development of such exhausted field.
The subsoil user's expenses on development and maintenance of objects of social infrastructure of the region, and also the means transferred by it on these purposes into the government budget belong to financing of expenses on social and economic development of the region and development of its infrastructure.
The amount of financing, performed according to this Item, the exceeding established minimum, is considered on account of execution of the corresponding obligations of the subsoil user next year.
23. Purchase of goods, the works and services used when carrying out transactions on investigation or hydrocarbon production is performed by the subsoil user and his contractors, except for the subsoil users acquiring goods, works and services according to the legislation of the Republic of Kazakhstan on public procurements and also the legal entities having subsurface use rights, fifty and more percent of voting shares (shares) of which the national managing holding, according to Rules of acquisition by the subsoil users and their contractors of the goods, works and services used when carrying out transactions on investigation or hydrocarbon production and production of uranium, approved by the order of the Minister of Energy of the Republic of Kazakhstan of May 18, 2018 No. 196 directly or indirectly owns (it is registered in the Register of state registration of regulatory legal acts for No. 17122).
23-1. The subsoil user performing hydrocarbon production on the exhausted field shall fulfill the investment obligation in development of such exhausted field and (or) additional financing of social and economic development of the region according to the procedure, established by the subitem 3) of Item 22 of the Contract, in the amount of at least amount, calculated as the work of coefficient of the investment established according to article 153-1 of the Code and the amount of gross annual income on such field estimated according to the technique of conducting separate tax accounting of the subsoil user approved in tax accounting policy according to article 723 of the Code of the Republic of Kazakhstan "About taxes and other obligatory payments in the budget" (further - the Tax code), following the results of previous year.
Note: Item 23-1 joins in the Contract in case of introduction of amendments to the Contract in connection with reference of the field (fields) to category exhausted according to article 153-1 of the Code.
24. The subsoil user shall represent to authorized body in the field of hydrocarbons in the forms and procedure approved by the order of the Minister of Energy of the Republic of Kazakhstan of May 11, 2018 No. 168 (it is registered in the Register of state registration of regulatory legal acts for No. 17016),
annual (for one financial year) and medium-term (on five financial years) programs of purchase of goods, works and services, and also information on the planned acquisition of paid services of the operator in case of its attraction.
25. The subsoil user shall provide reports, stipulated in Item 70 Contracts.
26. When carrying out transactions on investigation and (or) hydrocarbon production the subsoil user shall give preference to the Kazakhstan personnel. The minimum share of intra country value in personnel shall constitute _ % on heads and their deputies, _ % on heads of structural divisions, _ % on specialists and _ % on skilled workers.
At the same time the number of the heads, managers and specialists performing labor activity in the territory of the Republic of Kazakhstan within the internal translation according to the legislation of the Republic of Kazakhstan on employment of the population and population shift shall be no more than fifty percent from the total number of heads, managers and specialists in each corresponding category. Calculation of share of intra country value in personnel is perfromed according to the Method of calculation of share of the intra country value in personnel approved by the order of the Minister of Labour and Social Protection of the population of the Republic of Kazakhstan of May 18, 2018 No. 193 (it is registered in the Register of state registration of regulatory legal acts for No. 17021).
27. The subsoil user shall provide equal working conditions, including compensations for the Kazakhstan personnel in relation to the attracted foreign personnel.
The subsoil user shall provide annual wages indexation for the Kazakhstan personnel not below the rate of inflation published by authorized organization.
The subsoil user according to reasonable market conditions provides determination of fair rates for the involved contract organizations for the oilfield service works / services rendered by them.
28. Share of intra country value in the works and services acquired for carrying out transactions on subsurface use including in work types and the services included in the List of priority works and services approved by the order of the acting minister of power industry of the Republic of Kazakhstan of April 13, 2018 No. 124 (it is registered in the Register of state registration of regulatory legal acts for No. 16851), shall constitute at least fifty percent from the total amount of the acquired works and services within calendar year.
The share of intra country value in the goods acquired for carrying out transactions on subsurface use shall constitute at least ___ percent from the total amount of goods purchased within calendar year.
Note: if the winner of auction at stage of filing of application on participation in auction offered the minimum obligations on intra country value in works, services more than fifty percent, the offered obligations are fixed in this Item.
Calculation of share of intra country value in goods, works and services is performed according to the Single calculation procedure the organizations of intra country value when purchasing goods, works and services approved by the order of the Minister of investments and development of the Republic of Kazakhstan of April 20, 2018 No. 260 (it is registered in the Register of state registration of regulatory legal acts for No. 16942).
29. The subsoil user shall notify the state body which granted such right of subsurface use on change of list of persons and (or) the organizations directly or indirectly controlling activities of the subsoil user within thirty calendar days from the date of such change.
30. The subsoil user shall notify without delay Competent authority on the termination of powers of the operator under the contract for subsurface use.
31. In case of each opening of new deposit (set of deposits) the subsoil user within a month from the date of such opening directs to authorized body on studying of subsoil the application for detection confirmation.
32. The subsoil user within a month from the date of confirmation of detection by authorized body on studying of subsoil shall notify in writing on it competent authority and begin development of the amendment to the project of prospecting works providing work by assessment.
33. The subsoil user shall accept all earlier drilled wells which are in the territory of the subsoil plot on balance, to carry out on them monitoring.
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