The Mazhilis approved amendments to the Сode on Subsoil and Subsoil Use

Briefly

In the first reading the Mazhilis approved the draft Law “On introduction of amendments and additions to the Code on Subsoil and Subsoil Use on matters relating to improvement of subsoil use sphere” (the “Draft Law”).

In details

The Draft Law, inter alia, envisages:

• The right of the subsoil user to refuse from unpromising drilling of a well at the exploration stage without paying fines for failure to fulfill contractual obligations;
• Obligations of the subsoil user to approve and submit the project for liquidation of the consequences of subsoil use of hydrocarbons no later than two months from the date of filing the application for refusal from the entire subsoil plot;
• New procedure for issuing permission for encumbrance of the subsoil use rights and objects related to subsoil use rights;
• Establishing the deadline for the economic examination of changes to subsoil use contracts for hydrocarbons and uranium, concluded before the entry into force of the Code on Subsoil and Subsoil Use.

Are you interested in this topic?

• We would be pleased to discuss with you the above amendments and how they can impact your business.
• We can analyze and implement possible steps to ensure compliance with the new requirements.

If you are interested in additional information, please contact PwC specialists working as part of a group serving your company, or to any of the persons listed.

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