Kazakhstan, Astana, 14 Feb. / D. Mukhtarov /
The Ministry of Oil and Gas of Kazakhstan will not consider proposals from subsoil users to extend contracts given they have violated contractual obligations. This was stated today by the executive secretary of the Ministry of Oil and Gas of Kazakhstan, Kanatbek Safinov at a forum of oil and gas companies entitled 'Oil and Gas: Kazakh Content 2013'.
"We will not consider proposals from subsoil users to extend their contracts within the expert committee and working groups given they have violated contractual obligations. The law stipulates that any changes to the contract may only be introduced for those companies that perform their contractual obligations and we (the Ministry of Oil and Gas) will accurately track these moments when it comes to local content," Safinov said.
Safinov noted that the main complaints of domestic producers to subsoil users are unfounded refusal to accept bids with price proposals, non-admission to the opening procedure, breach of the deadline for submission of announcements of competitions and artificial delay in the conclusion of contracts.
"We hope the introduction of electronic trading will remove such formal violations", Safinov said.
In particular, according to Safinov, CNPC-Aktobemunaigas JSC has promised the Ministry of Oil and Gas to place orders at the Kazneftmashgaz factory worth hundreds of millions of tenge. However it did place an order for 18 million tenge.
Chevron took orders from another Kazakh company and then said its pipes are not suitable.
"The fact is, we do not understand the policy of subsoil users," Safina said.
