Azerbaijan, Baku, Aug. 19 / corr Trend S.Suleymanov /
The recently adopted new version of the law on subsoil and subsoil use in Kazakhstan envisages only one type of concession contract on exploitation and production of minerals, Oil and Gas Ministry's Responsible Secretary Kanatbek Safinov said.
A total of 15 Production Sharing Agreements have been signed in Kazakhstan so far. "They were attractive for the guaranteed state stability for terms of the agreements in the period of efficiency of such contract," Safinov added.
Safinov reminded that in term of the PSA stability of terms first of all concerns tax stability of the contract, which is very important. Because the government, as the second side in the contract, is simultaneously authorized to correct its tax policy any time with the consideration of its changing economic interests.
"PSA remains preferable for an investor, which along with stability of tax relations enables it to receive definite volumes of hydrocarbons to develop own profile business. This is of paramount importance in conditions of restricted volumes of energy resources and their exhaustion worldwide," Safinov stressed.
"Earlier, Kazakhstan used to apply only concession contracts and raw production sharing agreements," Safinov added.
PSA enables the country to obtain oil volumes in nature, which can be handled at own discretion.
"This is the major difference of the service contract, in line with which the subsoil user lifts the crude to the surface, receiving pay for the job in exchange," Safinov added.
Some countries allow carrying out calculations with this subsoil developing country partially by oil or gas produced. In this situation the government possesses considerable volumes of mineral crude, which it is committed to export or refine.
According to Safinov, service contracts can be very profitable for the state, which possesses well developed pipeline transport system or excessive refining capacities.