Kazakhstan: Energy Ministry to Seek KZT 14 Billion from Subsoil Users for Contract Breaches

Energy Minister Almasadam Satkaliyev discussed revising subsoil areas that subsoil users have been holding for an extended period of time without fulfilling contractual obligations, Orda.kz reports.

Since 2022, the Ministry has terminated 52 contracts. They will then be put up for auction again.

 According to Satkaliyev, 1.9 billion tenge in dues have already been settled under nine contracts.

For violations of contractual obligations in 2022, 158 notices were issued for a total of 12 billion tenge, of which about 5.6 billion tenge have been paid. For violations of contractual obligations in 2023, 141 notices were issued for a total of 14 billion tenge, of which about 2.4 billion tenge have been paid to date,Almasadam Satkaliyev said at the Majilis government hour. 

As of November 1, 2024, 315 hydrocarbon contracts are in effect. 

Since 2020, the procedure for granting subsoil use rights has been fully automated and is carried out by auction in electronic form, which makes it as open and transparent as possible. During this time, nine electronic auctions were held, at which 110 subsoil plots were sold with a subscription bonus paid to the budget in the amount of about 49.5 billion tenge and with declared investments in geological exploration in the amount of 443 million dollars, the Minister added.

The following auction for nine sites is scheduled for November 27, 2024.

Original Author: Zhadra Zhulmukhametova