The contract between the Government of the Republic of Kazakhstan and the Government of Georgia on cooperation in the field of the oil and gas industry

of November 11, 1997

The government of the Republic of Kazakhstan and the Government of Georgia, hereinafter referred to as "Contracting parties",

aiming at further development and strengthening of good-neighbourhood,

wishing to develop bilateral mutually beneficial economic cooperation, attaching extremely important significance to development of the oil and gas industry in the countries as one of fundamental factors of effective functioning and interaction of economies of the states of Contracting Parties, and understanding special role and value of this industry for development of the Central Asian and Caucasian regions, considering mutual interest of Contracting Parties in effective use and building-up of inventories of hydrocarbonic resources, creating favorable conditions for cooperation in the field of investigation, development, production, conversion, transportation, and also realization of hydrocarbons and products of their conversion,

considering the aspiration of the Republic of Kazakhstan to develop reliable and effective ways of transportation of the hydrocarbonic resources on the international markets,

in view of the offer of Georgia on creation of transport corridor in its territory for transportation of hydrocarbonic raw material from the Republic of Kazakhstan, aiming to create favorable conditions for transit of hydrocarbonic raw material through the territories of both states on the domestic and international markets,

and considering Agreement provisions to the Energy Charter of December 17, 1994,

agreed as follows.

Article 1

Contracting parties, acting on the mutually advantageous basis, will develop in every possible way cooperation in the field of the oil and gas industry and industries of the infrastructure accompanying it.

Article 2

Contracting parties will provide necessary assistance of the states of Contracting Parties to business entities in implementation of mutually advantageous joint activities in the territories of the states in different sectors of the oil and gas industry in forms and according to the procedures regulated by legislations of the states of Contracting Parties.

Article 3

Contracting parties on the agreed terms which are not contradicting legislations of the states will promote activities of state bodies, the physical persons and legal entities authorized by the Department of Energy, the industry and trade of the Republic of Kazakhstan and the Ministry of Fuel and Energy of Georgia in the projects performed in the territories of the states of Contracting Parties in the field of investigation, development, production, conversion, transportation and realization of the hydrocarbons and the accompanying infrastructure having priority value.

Article 4

Contracting parties create in the territories of the states favorable conditions for transit, transportation, transfer, storage, loading, acceptance and other transactions through the territories of the states made in the territories of the states of Contracting Parties or belonging to them, also to the third countries, hydrocarbons, products of their conversion and goods, necessary in connection with their production.

Contracting parties will take necessary measures for creation of legislative and economic basis for stable, safe, effective functioning of the transport corridor passing on the territories of the states.

Contracting parties will not take any actions capable to cause damage to the interests of each other following from the this Agreement purposes.

Article 5

Contracting parties will promote creation and development of the approved schemes of operational management (including telecommunication) transit transportation and pipe networks for transportation of hydrocarbons and products of their conversion.

Article 6

Contracting parties will give each other necessary assistance and assistance for the prevention and liquidation of natural disasters, accidents, other emergency situations on objects of the oil and gas industry and the accompanying infrastructure, and also to undertake necessary measures for development and implementation of appropriate programs of safety, environmental protection, protection of life and health of personnel on objects and/or in projects of joint interest.

Article 7

Contracting parties will periodically hold consultations with the purpose of further development and deepening of mutually advantageous bonds of the oil and gas industry, and also concerning sci-tech cooperation and training of specialists.

Article 8

Contracting parties by mutual consent can make necessary additions and changes to this Agreement.

Article 9

Contracting parties for the dispute resolution and disagreements arising in case of application and/or interpretation of this Agreement will hold negotiations and consultations, being guided at the same time by the commonly accepted international standards and rules, and also relevant provisions of the Agreement to the Energy Charter of December 17, 1994.

Article 10

This Agreement becomes effective from the date of the last written notice of accomplishment by Contracting Parties of the interstate procedures necessary for its entry into force, and will remain in force within six months from date when one of Contracting Parties in writing notifies other Contracting Party on the intention to withdraw from the contract.

It is made in Almaty on November "11", 1997 in two authentic copies, everyone in the Kazakh, Georgian and Russian languages, and all texts have identical legal force.

For the purposes of interpretation of provisions of this agreement the text in Russian is used.

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