Kazakhstan may terminate oil industry contracts

Oil&Gas Materials 20 March 2012 14:27 (UTC +04:00)

Kazakhstan, Astana, March 20 / Trend D. Mukhtarov /

Kazakhstan is toughening the requirements for subsoil users for non-fulfilment of obligations on Kazakh content by imposing fines, executive secretary of the Ministry Kanatbek Safinov said today.

"The Oil and Gas Ministry has established a legal basis to execute local content in the oil and gas sector," he said at a forum of oil and gas companies focusing on the issues of Kazakh content. "Almost all mining companies have undertaken contractual obligations on local content, but, unfortunately some people have not fulfilled all assumed obligations yet."

He said that the fines will be the first step toward tightening the requirements for non-fulfilment on local content.

"This year, we fined the subsoil users for the failure to comply with these obligations to the sum of 400 million tenge for the first time," he said. "Then, if they do not fulfil their obligations, we will terminate contracts."