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JOINT ORDER OF I.O. MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF KAZAKHSTAN AND FIRST VICE-MINISTER OF THE INDUSTRY AND TRADE OF THE REPUBLIC OF KAZAKHSTAN

of April 29, 2005 No. 129, of April 29, 2005 No. 164

About approval of the Method of calculation of the Kazakhstan content concerning goods, works and services in contracts for subsurface use

1. Approve the enclosed Method of calculation of the Kazakhstan content concerning goods, works and services in contracts for subsurface use.

2. To impose control of execution of this order on the first vice-the Minister of Energy and Mineral Resources of the Republic of Kazakhstan B. Izmukhambetov and the first vice-minister of the industry and trade of the Republic of Kazakhstan I. Kravchenko.

3. This order becomes effective from the date of signing.

 

Deputy. Minister of Energy and Mineral Resources of the Republic of Kazakhstan

 

B. Izmukhambetov

First vice-minister of the industry and trade of the Republic of Kazakhstan

 

I. Kravchenko

Approved by the joint Order of the deputy. The Minister of Energy and Mineral Resources of the Republic of Kazakhstan of April 29, 2005 No. of the 129 and First vice-minister of the industry and trade of the Republic of Kazakhstan of April 29, 2005 No. 164

Method of calculation of the Kazakhstan content concerning goods, works and services in contracts for subsurface use

1. General provisions

2. The technique is intended for calculation of the Kazakhstan content concerning goods, works and services in contracts for subsurface use for the purpose of implementation of monitoring and control of observance by subsoil users of contract obligations, and also for preparation by applicants of competitive offers on receipt of the right of subsurface use in the Republic of Kazakhstan.

3. In this Technique the following basic concepts are used:

1) the Kazakhstan producer - the physical persons and legal entities of the Republic of Kazakhstan making the goods performing works and rendering services of the Kazakhstan origin;

2) the Kazakhstan origin (goods, works, services of the Kazakhstan origin) direct production (accomplishment) in the territory of the Republic of Kazakhstan of goods, works and services;

3) the Kazakhstan content - percentage with possibility of redistribution by years of amounts of goods, works and services of the Kazakhstan origin, acquired as directly, and by means of the conclusion of agreements of sub contracting;

4) works - accomplishment for a fee works on creation (production) of goods, installation of equipment, construction of the constructions and other objects necessary as for direct use when carrying out transactions on subsurface use, and for the accompanying activities connected with the contract for subsurface use;

5) the working program - set of plans of the subsoil user for the duration of the contract in general, including actions for realization of conditions of competitive offers;

6) the working program of purchase of goods of works and services - the part of the working program containing, including, intentions about the goods which are purchased on competitive basis, works and services of the Kazakhstan origin in percentage expression from total cost of the goods, works and services necessary for performance of works under the contract and conforming to the state and (or) international standards;

7) goods - the equipment, finished goods and other material values acquired as for direct use when carrying out transactions on subsurface use, and for the accompanying activities connected with the contract for subsurface use;

8) services - implementation on paid basis of the activities necessary as for direct use when carrying out transactions on subsurface use, and for the activities provided in the contract as accompanying, not directed to creation (production) of goods or other physical items;

2. Method of calculation of the Kazakhstan content

4. In the course of development of the working program and technical and economic indicators on implementation of investigation and (or) production by the subsoil user the working program of purchase of goods, works and services according to appendix 1 to this Technique is constituted and joins in the competitive offer on receipt of the right of subsurface use to investigation, production or the combined exploration and production.

5. Percentage expression of cost of goods, works and services of the Kazakhstan content from total cost of the goods, works and services necessary for performance of works under the contract is determined by formula:

Формула к Приказу от 29.04.2005 г. №129

where:

- Vkc - the cost of the goods, works and services of the Kazakhstan origin made (which are carried out, rendered) the Kazakhstan producers, acquired for performance of works under the contract and conforming to the state and (or) international standards;

- Vo - total cost of the goods, works and services spent (necessary) for performance of works under the contract and conforming to the state and (or) international standards.

Appendix 1

to the Method of calculation of the Kazakhstan content concerning goods, works and services in contracts for subsurface use approved by the deputy. The Minister of Energy and Mineral Resources of the Republic of Kazakhstan of April 29, 2005 No. of the 129 and First vice-minister of the industry and trade of the Republic of Kazakhstan of April 29, 2005 No. 164

See Appendix No. 1 (4Kb In original language)

 

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