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E-auction for right to explore and produce hydrocarbons wraps up in Kazakhstan

Oil&Gas Materials 23 April 2021 18:41 (UTC +04:00)
E-auction for right to explore and produce hydrocarbons wraps up in Kazakhstan

BAKU, Azerbaijan, April 23

Trend:

The second e-auction for granting of subsoil use rights for hydrocarbon raw materials was held in Kazakhstan on April 23, Trend reports with reference to the Ministry of Energy of the Republic of Kazakhstan.

Following the auction, the total amount of the signature bonus amounted to 9.3 billion tenge ($21,603).

The auction for granting of subsoil use rights for hydrocarbons was completed on April 23, 2021 at 17:00 (GMT+6).

Proceeding from the results of the auction, the winners of the auction were determined for eight subsoil plots.

The starting amount of signature bonuses for 8 sections was 713 million tenge ($1,656).

Following the auction, the total amount of the signature bonus amounted to 9.3 billion tenge ($21,603).

It is important to stress that the right to subsoil use, rather than land ownership, is granted through the auction.

This right is regulated by the Code "On Subsoil and Subsoil Use", any technological processes at the sites will be considered by the Central Commission for Exploration and Development of Hydrocarbon Deposits under the Ministry of Energy of the Republic of Kazakhstan.

Having received the right to subsoil use, the investor signs a land lease agreement with the local executive body.

Before developing a project document, each subsoil user is obliged to hold public hearings with the participation of the local population.

All proceeds from the auction will replenish the state budget.

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