Kazakhstan Moves To Simplify Oil Exploration Rules

The deputies of the mazhilis approved amendments to the Environmental Code that should significantly facilitate the exploration of oil and other minerals, as well as related state regulation, the Association of Independent Oil Production and Refining Companies of Kazakhstan (PetroMining NGOs) said on its Telegram channel, Orda.kz reports.

The amendments include several important changes highlighted by the association. Mineral exploration projects will now always fall under the second category of facilities with a negative impact on the environment. The state classifies such facilities as having a moderate environmental impact. In total, the Environmental Code provides for four categories, ranging from significant negative impact to minimal. Depending on the category, mining companies pay different rates for harmful emissions. Facilities in the fourth category do not pay such fees at all.

Under the current version of the Environmental Code, mineral exploration is classified in the first category. The amendments move it to the second category, except for offshore projects, which means lower payments for harmful emissions for mining companies.

Exploration projects, again with the exception of offshore ones, are also exempt from mandatory public hearings and several bureaucratic procedures, including an environmental impact assessment, the submission of applications for planned activities, and state environmental review.

Projects whose work terms change will be exempt from repeated environmental review. Permits for them will be issued under an accelerated procedure, three days faster than before. In addition, the time frames for public hearings will be reduced from 30 to 15 days, for environmental permits from 45 to 10 days, and for screening from 22 to 10 days.

The amendments were reviewed and approved by the majilis working group. They will now be submitted for consideration at a plenary session of the lower house of parliament.

Oil and gas expert Nurlan Zhumagul, author of the Telegram channel Energy Monitor, called the amendments very important for the geological exploration industry. According to him, mining companies often face opposition from local residents, who interfere with seismic exploration and drilling. This applies even to sites whose development licenses were won at auction.

You not only get a cat in a bag, but also have to negotiate with local activists. Sometimes the price of such an agreement exceeded the amount of the subscription bonus. Zhumagul wrote. 

According to him, public discussions are more appropriate at the next stage of development of a specific site, after mineral reserves have been discovered and the project moves to industrial exploitation.

Original author: Alexey Afonsky

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