Kazakhstan to cut financial and administrative costs for subsoil users

Deputy Dyussenbay Turganov made a presentation of the document.

According to him, the draft law was initiated by MPs and pursues several goals: to raise investment attractiveness of geological exploration and hydrocarbon production projects; to optimize state expert examination of basic design documents; to reduce financial and administrative costs for subsoil users in development of mineral deposits.

Major novelties of the bill are:

- subsoil users’ right to abandon unpromising (based on seismic exploration work) well-drilling operations without being fined by the authorities;

- accelerated transition to geological exploration works

- optimization of administrative procedures in subsoil using operations, including state expert examination of design documents in the sphere of hydrocarbons

According to Dyussenbay Turganov, the draft law will not have any additional socio-economic and legal consequences and will not require additional financial expenses from the budget, as well as let improve regulatory conditions of carrying out subsoil operations, namely:

- to quickly begin geological exploration works;

- to reduce the deadlines of various expert examinations by 8-12 months;

- to eliminate administrative costs by more than 2fold, from 120 to 50 days;

- to raise investment attractiveness.