BAKU, Azerbaijan, August 6
By Nargiz Sadikhova - Trend:
Kazakhstan’s Ministry of Energy will initiate amendments to the ‘On Subsoil and Subsoil Use’ Code, Kazakhstan Vice Minister of Energy Zhumabay Karagayev said, Trend reports.
The amendments are aimed at improving the transparency of electronic auctions for the granting of subsoil use rights for hydrocarbons.
Kazakhstan has been holding electronic auctions for subsoil use since September 1, 2020. The right to temporary subsoil use is granted through the auction, not land ownership.
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 Subsoil under the Ministry of Energy.
According to the first electronic auction, which took place on December 23, 2020, the winners of the auction were determined for 8 subsoil plots.
At present, the decision on the recognition of the results of the tender for the winner by the Commission for Granting Subsoil Use Rights for Hydrocarbons for these sites has been canceled, and the sites will be put up for auction again.
Ten more subsoil plots were auctioned off later on and to date, contracts have been concluded for all the plots.
As a result of two electronic auctions, it became necessary to amend the Code "On Subsoil and Subsoil Use" in terms of conducting an electronic auction, namely:
- payment of a guarantee deposit by the auction participants in the amount not less than the starting size of the signature bonus;
- in case of non-payment by the auction winner of the final amount of the signature bonus, recognition of the second participant as the winner of the auction;
- the issue of lifting the restriction on holding an auction no more than 2 times a year is being considered.
---
Follow the author on Twitter: @nargiz_sadikh