KAZENERGY suggests to return to integrated subsoil use contracts

says at the presentation of the National Energy report for 2013.

The Association has suggested solving the point within the Code ‘About Subsoil’ that will consist of three parts, one common and two special, about the extraction of solid minerals, and oil and gas and hydrocarbons. It thinks that the subsoil users will also be interested in integrated contracts for exploration and production.

Mr. Magauov says that one more important problem of the sector is the high tax burden (67%) to the hydrocarbon enterprises. Development, the further processing and improving of the trade state needs much investment because the deposits are deep. The Association thinks that the state should stimulate investment and provide tax benefits. The optimal level of tax burden is 60 - 63 % instead of the current 68 - 70 %. The tax bodies have their own tasks, to fill in the budget and to provide stable social payments. ‘We should explain that the tax base will increase due to such a reduction. The additional deposits and working places will appear’.