Kazakhstan Drafts List of Strategic Hydrocarbon Porjects

A list of oil and gas licenses "having strategic significance" in Kazakhstan is being drafted by the country's energy ministry, a source in the ministry said.

The listed oil and gas licenses would be subject to the new law on subsoil use, which allows Kazakhstan to unilaterally terminate or demand amendments to contracts with energy companies.

"The list is being drawn up by the government, namely [energy minister] Sauat Mynbayev, and it is possible that the list will be completed by the end of the year," said the source.

In order for Kazakhstan to exercise the law on subsoil use, the government must first approve a special decree outlining the licenses with strategic significance before the law is applied, according to Kazakh law experts.

The law on subsoil use gives Kazakhstan two paths to terminate contracts with energy companies. One option forces the company into negotiations with the government, which in any case might end in the termination of the contract.

The other option allows for the repudiation of the contract with a notice period of only two months.

Asked what constitutes a license with strategic significance, the source said that significance "depends upon the situation, time and the world market. But the ultimate decision lies with the minister of energy."

Source: Platts Energy   

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