Subsoil companies violating law in Kazakhstan

Oil&Gas Materials 28 March 2012 20:19 (UTC +04:00)

Kazakhstan, Astana, March 28 / Trend D. Mukhtarov /

The Kazakh National Agency which examines local issues has reviewed the procurement of subsoil users operating in the mining sector and revealed a number of companies violating existing laws on subsoil use, the Agency said today.

'Most of the 229 companies operating in the mining sector violate one or several points of law on the subsoil use', the message said. 'These conclusions were made by the National Agency which oversees local matters based on the analysis of the procurement of subsoil users as of 2011'.

According to the press service, the total amount of purchased goods and services amounted to 568 billion tenge ($1-147.7 tenge) and more than half has been purchased through the register of goods and services used while carrying out mining operations.

'The failure to use the registry is a violation of paragraph 3 of Article 77 of the law', the message said. 'The goods and services used during subsoil operations are purchased by using the above mentioned registry, or other electronic procurement systems located in the Kazakh sector of the Internet. Violations worth 212.2 billion tenge were revealed."

However, the real figure could be much bigger taking into account that 44 companies do not provide information on the planned and purchased goods, work and services.

Last year, 32 companies submitted incorrect data which significantly affected the share of local content in the subsoil users' procurement.