On approval of risk assessment criteria and checklists when conducting subsoil use operations in the field of hydrocarbons

Updated Unofficial translation

Joint Order № 453 of the Minister of Energy of the Republic of Kazakhstan as of November 23, 2018 and № 77 of the Acting Minister of National Economy of the Republic of Kazakhstan as of November 23, 2018. Registered in the Ministry of Justice of the Republic of Kazakhstan on November 27, 2018 № 17797.

      Unofficial translation

      Footnote. The title is in the wording of the joint order of the acting Minister of Energy of the Republic of Kazakhstan dated 29.11.2022 № 382 and acting Minister of National Economy of the Republic of Kazakhstan dated 30.11.2022 № 101 (shall be enforced from 01.01.2023).

      In accordance with paragraph 5 of Article 141, paragraph 1 of Article 143 of the Entrepreneurial Code of the Republic of Kazakhstan, WE HEREBY ORDER:

      Footnote. The preamble is in the wording of the joint order of the acting Minister of Energy of the Republic of Kazakhstan dated 29.11.2022 № 382 and acting Minister of National Economy of the Republic of Kazakhstan dated 30.11.12022 № 101 (shall be enforced from 01.01.2023).

      1. To approve:

      1) the criteria for assessing the degree of risk when conducting subsoil use operations in the field of hydrocarbons in accordance with Appendix 1 to this joint order;

      2) a checklist when conducting subsoil use operations in the field of hydrocarbons on land in relation to individuals or legal entities who have the right to conduct subsoil use operations for hydrocarbon exploration in accordance with Appendix 2 to this joint order;

      3) a checklist when conducting subsoil use operations in the field of hydrocarbons on land in relation to individuals or legal entities who have the right to conduct subsoil use operations for hydrocarbon production in accordance with Appendix 3 to this joint order;

      4) a checklist when conducting subsoil use operations in the field of hydrocarbons at sea in relation to individuals or legal entities who have the right to conduct subsoil use operations for hydrocarbon exploration in accordance with Appendix 4 to this joint order;

      5) a checklist when conducting subsoil use operations in the field of hydrocarbons at sea in relation to individuals or legal entities who have the right to conduct subsoil use operations for hydrocarbon production in accordance with Appendix 5 to this joint order;

      6) a checklist when conducting subsoil use operations in the field of hydrocarbons in relation to individuals or legal entities whose right to conduct subsoil use operations has been terminated in accordance with Appendix 6 to this joint order;

      7) a checklist when conducting subsoil use operations in the field of hydrocarbons in relation to individuals or legal entities who have permission to create and locate offshore facilities in accordance with Appendix 7 to this joint order.

      Footnote. Paragraph 1 is in the wording of the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

      2. To invalidate Joint Order № 718 of the Acting Minister of Energy of the Republic of Kazakhstan as of December 14, 2015 and № 800 of the Minister of National Economy of the Republic of Kazakhstan as of December 28, 2015 “On Approval of Risk Assessment Criteria and the Checklist for Oil Operations” (registered in the Register of State Registration of Regulatory Legal Acts under № 12673, published in the “Adilet” Information and Legal System on January 27, 2016).

      3. In accordance with the procedure established by the legislation of the Republic of Kazakhstan, the Department of State Control over Hydrocarbons and Subsoil Use of the Ministry of Energy of the Republic of Kazakhstan shall:

      1) ensure state registration of this joint order with the Ministry of Justice of the Republic of Kazakhstan;

      2) within ten calendar days of the state registration of this joint order, send it in Kazakh and Russian to the Republican State Enterprise with the Right of Economic Management “Republican Center of Legal Information” for its official publication and inclusion into the Reference Control Bank of Regulatory Legal Acts of the Republic of Kazakhstan;

      3) place this joint order on the official website of the Ministry of Energy of the Republic of Kazakhstan;

      4) within ten working days of the state registration of this joint order with the Ministry of Justice, submit information on the implementation of measures, provided for in subparagraphs 1), 2) and 3) of this paragraph and paragraph 3 of this resolution, to the Legal Department of the Ministry of Energy of the Republic of Kazakhstan.

      4. Control over execution of this joint order shall be entrusted to the supervising deputy Minister of Energy of the Republic of Kazakhstan.

      5.This joint order shall take effect ten calendar days after the day of its first official publication.

      Minister of Energy of the
Republic of Kazakhstan 		K. Bozumbayev
      Acting Minister of
National Economy of the
Republic of Kazakhstan 		R. Dalenov

      “AGREED”
Committee on Legal Statistics and
Special Accounts of the
General Prosecutor’s Office of
the Republic of Kazakhstan

  Appendix 1
To Joint Order № 453 of the
Minister of Energy of the Republic
of Kazakhstan as of
November 23, 2018 and № 77
of the Acting Minister
of National Economy of the
Republic of Kazakhstan
as of November 23, 2018

Criteria
for assessing the degree of risk when conducting subsoil use operations in the field of hydrocarbons

      Footnote. Appendix 1 is in the wording of the joint order of the acting Minister of Energy of the Republic of Kazakhstan dated 29.11.2022 № 382 and acting Minister of National Economy of the Republic of Kazakhstan dated 30.11.12022 № 101 (shall be enforced from 01.01.2023).

Chapter 1. General provisions

      1. These Criteria for assessing the degree of risk when conducting subsoil use operations in the field of hydrocarbons (hereinafter - the Criteria) have been developed in accordance with paragraph 5 of Article 141 of the Entrepreneurial Code of the Republic of Kazakhstan (hereinafter - the Entrepreneurial Code), the Code of the Republic of Kazakhstan “On Subsoil and Subsoil Use” (hereinafter - the Code) and the Rules for the formation by regulatory state bodies of a risk assessment and management system, approved by order of the acting Minister of National Economy of the Republic of Kazakhstan dated June 22, 2022 № 48 (registered in the Register of state registration of regulatory legal acts № 28577) for the purpose of classifying the subjects (objects) ) of control in the field of control during subsoil use operations in the field of hydrocarbons according to the degree of risk.

      2. The Criteria use the following concepts:

      1) a subject of control - individuals or legal entities that have the right to conduct subsoil use operations in the field of hydrocarbons, as well as individuals or legal entities whose right to conduct subsoil use operations has been terminated;

      2) score – a quantitative measure of risk calculation;

      3) non-significant violations – violations related to:

      non-compliance with the requirement to send annual reports to the authorized body in the field of hydrocarbons on the implementation of programs for the development of crude gas processing;

      non-compliance with the requirement for independent testing of each productive layer during layer testing and wells testing (for the period established by the project document, but not more than 90 (ninety) days for each test object with a complex of field geological and hydrodynamic studies);

      the absence in the technological operating mode of wells of a technological norm for liquid extraction - for each production well and the volume of injected displacing agent (pick–up rate) - for each injection well;

      the absence of technological operating modes of production wells, compiled monthly or once a quarter, depending on the stability of the development conditions of the facility. Simultaneously with the technological operating modes of production wells, a plan of geological and technical measures shall be drawn up and approved to ensure the standards for liquid extraction from wells and the production facility as a whole;

      non-compliance with the requirements for the formation of a tender commission in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting hydrocarbon exploration or production operations;

      non-compliance with the requirements for placing an announcement about an open tender and tender documentation in the register (system) in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for exploration or production of hydrocarbons;

      4) normalization of data – a statistical procedure that involves bringing values measured on various scales to a conventionally common scale;

      5) significant violations - violations related to non-compliance with the mandatory norms of the Code;

      6) gross violations - violations related to non-compliance with the prohibitory norm of the Code;

      7) risk – the probability of causing harm as a result of the activities of the subject of control to human life or health, the environment, the legitimate interests of individuals and legal entities, the property interests of the state, taking into account the severity of its consequences;

      8) criteria for assessing the degree of risk - a set of quantitative and qualitative indicators related to the direct activities of the subject of control, features of industry development and factors influencing this development, allowing the subjects (objects) of control to be classified as different degrees of risk;

      9) objective criteria for assessing the degree of risk (hereinafter- the objective criteria) - criteria for assessing the degree of risk used to select subjects (objects) of control depending on the degree of risk in a certain field of activity and not directly dependent on the individual subject (object) of control;

      10) subjective criteria for assessing the degree of risk (hereinafter - the subjective criteria) - criteria for assessing the degree of risk used to select subjects (objects) of control depending on the results of the activities of a particular subject (object) of control;

      11) risk assessment and management system - the process of making management decisions aimed at reducing the likelihood of adverse factors occurring by distributing subjects (objects) of control according to the degree of risk for subsequent implementation of preventive control with a visit to the subject (object) of control in order to limit the freedom of entrepreneurship to the minimum possible degree, while ensuring an acceptable level of risk in relevant areas of activity, as well as aimed at changing the level of risk for a particular subject (object) of control and (or) releasing such a subject (object) of control from preventive control with a visit to the subject (object) of control.

      Footnote. Paragraph 2 is in the wording of the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

      3. For the purposes of risk management when carrying out preventive control with a visit to the subject (object) of control, the subjects (objects) of control belong to one of the following degrees of risk (hereinafter - the degree of risk):

      1) high risk;

      2) medium risk;

      3) low risk.

      4. Criteria for assessing the degree of risk for conducting preventive control of subjects (objects) of control shall be formed by determining objective and subjective criteria.

Chapter 2. Objective criteria

      5. Determination of objective criteria shall be carried out by determining risk.

      6. Risk determination shall be carried out taking into account one of the following criteria:

      1) level of danger (complexity) of the object;

      2) the scale of severity of possible negative consequences, harm to the regulated area (region);

      3) the possibility of an unfavorable incident for human life or health, the environment, the legitimate interests of individuals and legal entities, and the state.

      7. Subjects of control that are individuals or legal entities that have the right to conduct subsoil use operations for the production of hydrocarbons (having a subsoil use contract) shall be classified as high degree of risk.

      Subjects of control that are individuals or legal entities that have the right to conduct subsoil use operations for hydrocarbon exploration (having a subsoil use contract) shall be classified as medium degree of risk.

      Subjects of control, that are individuals or legal entities whose right to conduct subsoil use operations in the field of hydrocarbons has been terminated, shall be classified as low degree of risk.

      8. In relation to subjects (objects) of control classified as high and medium risk, subjective criteria shall be applied in order to conduct preventive control with a visit to the subject (object) of control.

Chapter 3. Subjective criteria

      9. Determination of subjective criteria shall be carried out using the following steps:

      1) formation of a database and collection of information;

      2) information analysis and risk assessment;

      10. Formation of a database and collection of information is necessary to identify subjects (objects) of control that violate the legislation of the Republic of Kazakhstan.

      To assess the degree of risk for conducting preventive control with visits to subjects (objects) of control, the following sources of information shall be used:

      1) results of monitoring the reporting and information submitted by the subject of control to the authorized body in the field of hydrocarbons;

      2) results of previous inspections and preventive control with visits to subjects (objects) of control. At the same time, the severity of violations (Gross, Significant, Non-significant) shall be established in case of non-compliance with the requirements of legislation reflected in the checklists.

      To assess the degree of risk to conduct verification for compliance with permitting requirements, a source of information shall be used - the results of previous inspections. At the same time, the severity of violations (Cross, Significant, Non-significant) shall be established in case of non-compliance with the requirements of the legislation reflected in the checklists.

      Footnote. Paragraph 10 is in the wording of the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

      11. The calculation of the risk level indicator according to subjective criteria (R) shall be carried out in an automated mode by summing the risk level indicator for violations based on the results of previous inspections (SP) and the risk level indicator according to subjective criteria (SC), with subsequent normalization of data values in the range from 0 up to 100 points.

      Rprom = SP + SC, where

      Rprom - an intermediate indicator of the degree of risk according to subjective criteria,

      SP – indicator of the degree of risk for violations,

      SC is an indicator of the degree of risk according to subjective criteria.

      The calculation is made for each subject (object) of control of a homogeneous group of subjects (objects) of control of each sphere of state control. In this case, the list of assessed subjects (objects) of control related to a homogeneous group of subjects (objects) of control of one sphere of state control forms a sample set (sample) for subsequent data normalization.

      Based on the data obtained from the results of previous inspections, an indicator of the degree of risk for violations shall be formed, assessed in points from 0 to 100.

      If one gross violation is detected from any of the sources of information specified in paragraph 10 of these criteria, the subject of control shall be assigned a risk indicator of 100 points and preventive control shall be carried out in respect of it with a visit to the subject (object) of control.

      If gross violations are not detected, the risk level indicator for violations shall be calculated by the total indicator for violations of a significant and non-significant degree.

      When determining the indicator of significant violations, a coefficient of 0.7 shall be applied.

      This indicator is calculated using the following formula:

      SРз = (SР2 х 100/SР1) х 0,7, where:

      SРз – indicator of significant violations;

      SР1– required number of significant violations;

      SР2– number of detected significant violations;

      When determining the indicator of non-significant violations, a coefficient of 0.3 shall be applied.

      This indicator is calculated using the following formula:

      SРн = (SР2 х 100/SР1) х 0,3, where:

      SРн – indicator of non-significant violations;

      SР1– required number of non-significant violations;

      SР2– number of detected non-significant violations;

      The violation risk indicator (SP) shall be calculated on a scale from 0 to 100 points and shall be determined by summing the indicators of significant and non-significant violations using the following formula:

      SP = SPs + SPn, where:

      SP– indicator of the degree of risk for violations;

      SPs – indicator of significant violations;

      SPn - indicator of non-significant violations.


      The obtained value of total indicator shall be the basis for classifying a business entity to one of the following degrees of risk:

      1) to a high degree of risk - with a risk degree indicator from 71 to 100 inclusive and in relation to it, preventive control shall be carried out with a visit to the subject (object) of control;

      2) to a medium degree of risk - with a risk degree indicator from 31 to 70 inclusive and in relation to it, preventive control shall be carried out with a visit to the subject (object) of control;

      3) to a low degree of risk - with a risk degree indicator from 0 to 30 inclusive and in relation to it no preventive control shall be carried out with a visit to the subject (object) of control.

      Based on the priority of the applied sources of information and the significance of the indicators of subjective criteria, in accordance with the procedure for calculating the risk degree indicator according to subjective criteria, the risk degree indicator according to subjective criteria shall be calculated on a scale from 0 to 100 points.

      The calculation of the risk degree indicator according to subjective criteria shall be made on a scale from 0 to 100 points and shall be carried out using the following formula:





      xi – subjective criterion indicator,

      wi – specific weight of the subjective criterion indicator,

      n – number of indicators.

      The obtained value of the risk degree indicator according to subjective criteria shall be included in the calculation of the risk degree indicator according to subjective criteria.

      The indicator values calculated for subjects (objects) shall be normalized to a range from 0 to 100 points. Data normalization shall be carried out for each sample population (sample) using the following formula:




      R – risk degree indicator (final) according to the subjective criteria of an individual subject (object) of control,

      Rmax – the maximum possible value on the risk degree scale according to subjective criteria for subjects (objects) included in one sample population (sample) (upper limit of the scale),

      Rmin – the minimum possible value on the risk degree scale according to subjective criteria for subjects (objects) included in one sample population (sample) (lower limit of the scale),

      Rprom - an intermediate indicator of the degree of risk according to subjective criteria.

      The degree of violation of requirements for entities when conducting subsoil use operations in the field of hydrocarbons on land in relation to individuals or legal entities who have the right to conduct subsoil use operations for hydrocarbon exploration in accordance with Appendix 1 to these Criteria.

      The degree of violation of requirements for subjects when conducting subsoil use operations in the field of hydrocarbons on land in relation to individuals or legal entities who have the right to conduct subsoil use operations for hydrocarbon production in accordance with Appendix 2 to these Criteria.

      The degree of violation of requirements for subjects when conducting subsoil use operations in the field of hydrocarbons at sea in relation to individuals or legal entities who have the right to conduct subsoil use operations for hydrocarbon exploration in accordance with Appendix 3 to these Criteria.

      The degree of violation of requirements for subjects when conducting subsoil use operations in the field of hydrocarbons at sea in relation to individuals or legal entities who have the right to conduct subsoil use operations for hydrocarbon production in accordance with Appendix 4 to these Criteria.

      The degree of violation of requirements for subjects when conducting subsoil use operations in the field of hydrocarbons in relation to individuals or legal entities that have permission to create and locate offshore facilities in accordance with Appendix 5 to these Criteria.

      The priority of the applied sources of information and the significance of the indicators of subjective criteria shall be established according to the list of subjective criteria for determining the degree of risk according to subjective criteria, which are given in Appendices 6, 7, 8 and 9 to these Criteria.

      When analyzing and assessing, data from subjective criteria that were previously taken into account and used in relation to a specific subject (object) of control or data for which the statute of limitations has expired in accordance with paragraph 1 of Article 178 of the Civil Code of the Republic of Kazakhstan shall not be used.

      In relation to subjects of control that have eliminated in full the violations issued based on the results of the previous preventive control with a visit, their inclusion in the formation of lists for the next period of state control shall not be allowed.

      The frequency of preventive control with a visit to the subject (object) of control shall be determined by the control body in relation to subjects (objects) of control classified as high risk, no more than once a year.

      Analysis of the information received and assessment of indicators shall be carried out twice a year until the first of May and until the first of December of the reporting year.

      If a preventive control with a visit was previously carried out in relation to the subject (object) of control, the analyzed period shall be the period from the day after the end date of the last preventive control with a visit until the start of the analysis.

      Preventive control with a visit to the subject (object) of control shall be carried out on the basis of semi-annual lists of preventive control with a visit to the subject (object) of control, formed in accordance with paragraph 4 of Article 144-2 of the Code.

      Footnote. Paragraph 11 is in the wording of the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

  Appendix 1
to the Criteria for assessing the degree
of risk when conducting
subsoil use operations in the field
of hydrocarbons

The degrees of violations of requirements when conducting subsoil use operations in the field
of hydrocarbons on land in relation to individuals or legal entities who have the right
to conduct subsoil use operations for hydrocarbon exploration

      Footnote. Appendix 1 is in the wording of the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

Item №

Requirement

Degree of violation

1

Compliance with the obligation to immediately suspend subsoil use operations in the event of non-compliance with the provision for liquidation of the consequences of subsoil use or its termination, as well as in its absence

Significant

2

Compliance with the obligation to supply hydrocarbons produced during the exploration period in full to the domestic market of the Republic of Kazakhstan, with the exception of hydrocarbons consumed for own technological needs or burned in cases of threat or emergency situations, threats to the lives of personnel or public health and the environment; when testing well objects; during trial exploitation of the deposit

Significant

3

Compliance with the requirements for maintaining and storing information (documents) on subsoil use in electronic and paper format, namely:
on the operation of wells and the implementation of geological and technical measures;
materials on wells operating modes;
about all works on hydrocarbon production;
primary documentation for the deposit;
about the repair works carried out, its content, the period between repairs of equipment and wells, as well as the technical and economic efficiency of the works performed throughout the entire period of operation of the facility;
all materials (acts, orders, protocols, and other materials) on conservation and (or) liquidation of oil, gas, and injection wells for various purposes during exploration and production of hydrocarbons

Significant

4

Compliance with the obligation to take over the balance of all previously drilled wells located on the territory of the subsoil plot and conduct monitoring of them

Significant

5

Compliance with the requirement to carry out subsoil use operations in accordance with the project document, as well as the prohibition on carrying out such works in the absence of a project document

Gross

6

Compliance with the requirements for the development of the deposit in accordance with the technical design document

Gross

7

Compliance with the obligation to ensure reliable accounting of produced hydrocarbons

Significant

8

Compliance with the requirement to eliminate the consequences of subsoil use of hydrocarbons and (or) conservation of a subsoil area

Significant

9

Compliance with the requirements for liquidation and (or) conservation of technological facilities

Significant

10

Compliance with the obligation to submit to the authorized body in the field of hydrocarbons annual (for one financial year) and medium-term (for five financial years) programs for the procurement of goods, works, and services no later than February 1 (first) of the year planned for procurement, or no later than 60 (sixty ) calendar days from the date of conclusion of the contract, as well as information on the planned acquisition of paid services of the operator in the event of its involvement by the subsoil user

Significant

11

Compliance with the requirement to submit the following reports to the authorized body in the field of hydrocarbons in the forms and procedures established by the legislation through a unified state subsoil use management system with a certified electronic digital signature of the first head or authorized representative:
1) on the purchased goods, works and services, as well as the amount of intra-country value in them;
2) on the intra-country value in personnel;
3) on the costs of financing the training of Kazakhstani personnel;
4) on expenses for scientific-research, scientific-technical and development works;
5) on the fulfillment of license and contract conditions;
6) on the composition of persons and (or) organizations directly or indirectly controlling the subsoil user;
7) on daily information on the production and delivery of oil and gas condensate;
8) on monthly information on oil production, gas condensate and development stages by fields (wells);
9) on the actual monthly production and delivery of oil and gas condensate;
10) on monthly information on the oil balance;
11) on monthly information on the company’s oil prices;
12) on monthly information on production, delivery, and balances of oil and gas condensate by recipients;
13) on annual information on the plan for production and delivery of oil and gas condensate;
14) on daily information on the production of associated and natural gas;
15) on the actual monthly production of associated and natural gas;
16) on monthly information on the movement of associated and natural gas;
17) on annual information on the production plan for associated and natural gas

Significant

12

Compliance with the requirement to carry out monitoring of the execution by the subsoil user of the annual report on author's supervision of the implementation of the exploration project (with the exception of an exploration project that does not include drilling and (or) testing of wells), the implementation of the project document for trial operation and sending them in a notification manner to the competent organ

Significant

13

Compliance with the prohibition on burning crude gas in flares without the permission of the authorized body, except in cases of threat or occurrence of emergency situations, threats to the life of personnel or public health and the environment

Gross

14

Compliance with the obligation to notify the authorized bodies in the field of hydrocarbons and environmental protection in writing within ten days when burning crude gas in flares without permission, indicating the reasons why the burning of crude gas occurred, and information about the volumes of burned crude gas in case of threat or emergency situations, threats to the life of personnel or public health and the environment

Significant

15

Availability of a program for the development of crude gas processing approved by the authorized body in the field of hydrocarbons

Significant

16

Compliance with the requirement to send annual reports to the authorized body in the field of hydrocarbons on the implementation of programs for the development of crude gas processing

Non-significant

17

Compliance with the requirement for independent testing of each productive formation when testing the formation and testing wells for the period established by the project document, but not more than 90 (ninety) days for each test object with a complex of field geological and hydrodynamic studies

Non-significant

18

Compliance with the prohibition on the operation of wells:
in which there was an uncontrolled gas breakthrough through the reservoir, or through the backwater space;
in the absence of pumping and compressor pipes;
in the absence of downhole and ground-based equipment that provides separate accounting of extracted products and conducting field studies of each object with the simultaneous separate operation of two or more objects by one well;
for forced withdrawal of fluid in wells at pressures below the permissible value of bottomhole pressure, unless otherwise provided by the document;
fountain or transferred to a mechanized method through the intertubular (annular) space;
with a gas factor exceeding the design values specified in the basic project documents and project documents for the exploration and production of hydrocarbons;
for forced extraction of liquid in wells at pressures below the permissible downhole pressure, unless otherwise provided in the project document;
without equipment for individual or group flow measurement and well exploration;
without manometers of wellhead and annular pressures, devices for taking wellhead samples and measuring the temperature at the mouth, reinforcement pads, and lubricators for launching deep instruments into wells (manometers, thermometers, flow meters, samplers)

Gross

19

Availability in the technological mode of wells operation of the technological rate of liquid extraction – for each producing well and the volume of the injected displacing agent (injectivity) – for each injection well

Non-significant

20

Availability of technological operating modes for production wells, compiled monthly or once a quarter, depending on the stability of the development conditions of the facility. Simultaneously with the technological operating modes of production wells, a plan of geological and technical measures is drawn up and approved to ensure standards for liquid extraction from wells and the operational facility as a whole.

Non-significant

21

Compliance with the prohibition on hydraulic fracturing of reservoir deposits with thin seals in order to avoid depressurization of hydrocarbon deposits

Gross

22

Compliance with the requirements for the formation of a tender commission in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works, and services used in conducting operations for the exploration or production of hydrocarbons

Non-significant

23

Preventing the establishment of other requirements in the tender documentation that are not provided for by the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Gross

24

Compliance with the requirements for placing an announcement of an open tender and tender documentation in the register (system) in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Non-significant

25

Preventing unreasonable admission and (or) rejection by the customer of competitive bids from potential suppliers in violation of the procedure for the acquisition by subsoil users and their contractors of goods, works, and services used in conducting operations for the exploration or production of hydrocarbons

Gross

26

Compliance with the requirements for the content and conditions of concluding an agreement on the purchase of goods, works and services

Significant

27

Compliance with the obligation to purchase goods, works and services used in conducting operations for the exploration or production of hydrocarbons by means of an open tender, from a single source and an open tender for reduction (electronic bidding) using the register of goods, works and services used in hydrocarbon operations subsoil use and their manufacturers or other electronic procurement systems located in the Kazakhstani segment of the Internet, the work of which is synchronized with the work of such a registry

Significant

28

Compliance with the requirement for a conditional reduction in the price of the competitive bid of the tender participants - Kazakhstani producers of works and services by twenty percent when determining the winner of the tender for the acquisition of works and services

Significant

29

Compliance with the obligation to approve and submit for examination a project for the conservation of a subsoil plot within two months from the date of termination of the right to subsoil use or suspension of the contract for subsoil use of hydrocarbons, as well as completion of the conservation of a subsoil plot within the time limits established in the conservation project

Significant

30

Compliance with the prohibition on carrying out activities in the field of production and (or) turnover of oil and gas condensate, operations for the production and (or) turnover of crude oil and gas condensate without equipping production facilities with metering devices and ensuring their functioning

Gross

31

Compliance with the requirement on the provision by entities operating in the field of crude oil and gas condensate turnover of access to the authorized body in the field of hydrocarbons to their existing accounting systems for data on the amount of crude oil and gas condensate in turnover, prepared for delivery to the consumer

Significant

32

Compliance with the requirement to submit an application for oil supply for the formation of oil supply schedules on a monthly basis before the fifth day of the month preceding the reporting month

Significant

  Appendix 2
to the Criteria for assessing the degree
of risk when conducting
subsoil use operations in the field
of hydrocarbons

The degrees of violations of requirements when conducting subsoil use operations
in the field of hydrocarbons on land in relation to individuals or legal entities having
the right to conduct subsoil use operations for hydrocarbon production

      Footnote. Appendix 2 is in the wording of the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

Item №

Requirement

Degree of violation

1

Compliance with the obligation to immediately suspend subsoil use operations in the event of non-compliance with the provision for liquidation of the consequences of subsoil use or its termination, as well as in its absence

Significant

2

Compliance with the obligation to supply hydrocarbons, including those produced during the exploration period, in full to the domestic market of the Republic of Kazakhstan, with the exception of hydrocarbons consumed for own technological needs or burned in cases of threat or emergency situations, threat to the life of personnel or the health of the population and the environment; when testing well objects; with technologically inevitable combustion of crude gas

Significant

3

Compliance with the requirements for maintaining and storing information (documents) on subsoil use in electronic and paper format, namely:
on the operation of wells and the implementation of geological and technical measures;
materials on well operating modes;
about all works on hydrocarbons production;
primary documentation for the field;
about the repair works carried out, its content, the period between repairs of equipment and wells, as well as the technical and economic efficiency of the works performed throughout the entire period of operation of the facility;
all materials (acts, orders, protocols, and other materials) on conservation and (or) abandonment of oil, gas, and injection wells for various purposes during exploration and production of hydrocarbons

Significant

4

Compliance with the obligation to take over the balance of all previously drilled wells located on the territory of the subsoil plot, conduct monitoring of them

Significant

5

Compliance with the requirement to carry out subsoil use operations in accordance with the project document, as well as the prohibition on carrying out such works in the absence of a project document

Gross

6

Compliance with the requirements for field development in accordance with the technical design document

Gross

7

Compliance with the obligation to ensure reliable accounting of produced hydrocarbons

Significant

8

Compliance with the requirements for carrying out work:
for additional exploration in accordance with the field development project;
assessment of a new deposit discovered during additional exploration, in accordance with the addition to the field development project

Significant

9

Compliance with the requirement to eliminate the consequences of subsoil use of hydrocarbons and (or) conservation of a subsoil area

Significant

10

Compliance with the requirements for liquidation and (or) conservation of technological facilities

Significant

11

Compliance with the obligation to supply oil for processing on the territory of the Republic of Kazakhstan, and in the event of a shutdown of the oil refinery due to an emergency - and beyond, in order to meet the needs of the domestic market with petroleum products

Significant

12

Compliance with the requirement for the alienation or transfer for processing of a wide fraction of light hydrocarbons produced by it

Significant

13

Compliance with the obligation to submit annual (for one financial year) and medium-term (for five financial years) procurement programs for goods, works and services to the authorized body in the field of hydrocarbons no later than February 1 (first) of the year planned for procurement, or no later than 60 (sixty) calendar days from the date of conclusion of the contract, as well as information about the planned acquisition of paid services of the operator in case of its involvement by the subsoil user

Significant

14

Compliance with the requirement to submit the following reports to the authorized body in the field of hydrocarbons in the forms and procedures established by the legislation through a unified state subsoil use management system with a certified electronic digital signature of the first head or authorized representative:
1) on the purchased goods, works, and services, as well as the amount of intra-country value in them;
2) on the intra-country value in personnel;
3) on the costs of financing the training of Kazakhstani personnel;
4) on expenses for scientific-research, scientific-technical and development works;
5) on the fulfillment of license and contract conditions;
6) on the composition of persons and (or) organizations directly or indirectly controlling the subsoil user;
7) on daily information on the production and delivery of oil and gas condensate;
8) on monthly information on oil production, gas condensate and development stages by fields (wells);
9) on the actual monthly production and delivery of oil and gas condensate;
10) on monthly information on the oil balance;
11) on monthly information on the company’s oil prices;
12) on monthly information on production, delivery and balances of oil and gas condensate by recipient;
13) on annual information on the plan for production and delivery of oil and gas condensate;
14) on daily information on the production of associated and natural gas;
15) on the actual monthly production of associated and natural gas;
16) on monthly information on the movement of associated and natural gas;
17) on annual information on the production plan for associated and natural gas

Significant

15

Compliance with the requirement to carry out the monitoring of implementation by the subsoil user of the field development project through annual supervision by the design organization and analysis of the development of hydrocarbon fields carried out at least once every three years and sending them in a notification procedure to the competent body

Significant

16

Availability of state expertise of project documents of the results of the analysis of the development of a hydrocarbon field in case of significant (more than ten percent) discrepancies between the actual and design indicators of the field development

Significant

17

Compliance with the prohibition on burning crude gas in flares without the permission of the authorized body, except in cases of threat or occurrence of emergency situations, threats to the life of personnel or public health and the environment

Gross

18

Compliance with the obligation to notify the authorized bodies in the field of hydrocarbons and environmental protection in writing within ten days when burning crude gas in flares without permission, indicating the reasons why the burning of crude gas occurred, and information about the volumes of burned crude gas in case of threat or emergency situations, threats to the life of personnel or public health and the environment

Significant

19

Compliance with the obligation to conduct an investigation and submit quarterly reports to the authorized body in the field of hydrocarbons no later than the twenty-fifth day of the month following the reporting quarter, indicating information about the time and volumes of gas burned for each case of technological failures, breakdowns and deviations in the operation of process equipment, and also their reasons

Significant

20

Availability of a program for the development of crude gas processing approved by the authorized body in the field of hydrocarbons

Significant

21

Compliance with the requirement to send annual reports to the authorized body in the field of hydrocarbons on the implementation of programs for the development of crude gas processing

Non-significant

22

Compliance with the requirement for independent testing of each productive formation when testing the formation and testing wells for the period established by the project document, but not more than 90 (ninety) days for each test object with a complex of field geological and hydrodynamic studies

Non-significant

23

Preventing unjustified release of gas from the gas cap and degassing of oil in reservoir conditions, leading to a decrease in the recovery factor of the main product (liquid hydrocarbons)

Significant

24

Compliance with the prohibition on the operation of wells:
with bottomhole pressures lower than those provided for in the design documents;
in which there was an uncontrolled gas breakthrough through the formation, or through the annulus;
in the absence of pumping and compressor pipes;
in the absence of downhole and surface equipment that would ensure separate accounting of produced products and carrying out field studies of each object while simultaneously operating two or more objects separately with one well;
fountain or transferred to a mechanized method through the annular (annulus) space;
with a gas factor exceeding the design values specified in the basic project documents and project documents for exploration and production of hydrocarbons;
for forced extraction of liquid in wells at pressures below the permissible downhole pressure, unless otherwise provided by the project document;
without equipment for individual or group flow rate measurement and well exploration;
without manometers of wellhead and annular pressures, devices for taking wellhead samples and measuring the temperature at the mouth, reinforcement pads and lubricators for launching deep instruments into wells (manometers, thermometers, flow meters, samplers);
not prepared for individual performance of a complex of field studies in them

Gross

25

Availability in the technological mode of operation of wells of the technological norm for liquid extraction – for each producing well and the volume of the injected displacing agent (injectivity) – for each injection well

Non-significant

26

Availability of technological operating modes for production wells, compiled monthly or once a quarter, depending on the stability of the development conditions of the facility. Simultaneously with the technological operating modes of production wells, a plan of geological and technical measures is drawn up and approved to ensure standards for luquid extraction from wells and the operational facility as a whole.

Non-significant

27

Compliance with the requirements for conducting:
a set of studies for each operational facility (determination of the component composition of the formation fluid, viscosity, density, saturation pressure, gas content, volumetric coefficient, compositions of released gas and degassed oil, as well as the dependence of gas content, volumetric coefficient and density of the formation fluid on pressure) in accordance with the schedule of sampling deep samples of oil/gas condensate from wells, taking into account the commissioning of new wells and their uniform distribution over the deposit area;
mandatory set of field studies when developing oil and oil and gas fields

Significant

28

Availability of manometers and flow meters on the flow lines of wellhead fittings during the gas-lift method of operating production wells to measure and regulate the pressure and flow rate of the working gas

Significant

29

Compliance with the requirement to change the technological regime of wells or perform appropriate insulation works when breaking through to the bottom of gas or water wells

Significant

30

Compliance with the prohibition on hydraulic fracturing of reservoir deposits with thin seals in order to avoid depressurization of hydrocarbon deposits

Gross

31

Compliance with the requirements for maintaining records of gas production, reflecting the production of utilized gas, gas losses during well testing and various purges, as well as during emergency blowouts

Significant

32

Compliance with the requirements for the formation of a tender commission in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Non-significant

33

Preventing the establishment of other requirements in the tender documentation that are not provided for by the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Gross

34

Compliance with the requirements for placing an announcement of an open tender and tender documentation in the register (system) in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production hydrocarbons

Non-significant

35

Preventing unreasonable admission and (or) rejection by the customer of competitive bids from potential suppliers in violation of the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Gross

36

Compliance with the requirements for the content and conditions of concluding an agreement on the purchase of goods, works and services

Significant

37

Compliance with the obligation to purchase goods, works and services used in conducting operations for the exploration or production of hydrocarbons by means of an open tender, from a single source and an open tender for reduction (electronic bidding) using the register of goods, works and services used in conducting subsoil use operations and their manufacturers or other electronic procurement systems located in the Kazakhstani segment of the Internet, the work of which is synchronized with the work of such a registry

Significant

38

Compliance with the requirement for a conditional reduction in the price of the competitive bid of the competition participants - Kazakhstani producers of works and services by twenty percent when determining the winner of the tender for the acquisition of works and services

Significant

39

Compliance with the state’s preemptive right to purchase alienated crude gas owned by subsoil users

Significant

40

Compliance by subsoil users intending to alienate crude gas with the requirements for sending for examination to the authorized body calculations of the marginal price of crude gas purchased by the national operator under the pre-emptive right of the state, documented, no later than January 1 of the coming year

Significant

41

Compliance by subsoil users with the requirements not to exceed the price of crude gas purchased by the national operator within the framework of the preemptive right of the state approved by the authorized body

Significant

42

Compliance by subsurface users intending to alienate crude gas, no later than five months before the start of the planned period, with the requirement to send a commercial offer to the national operator, indicating:
1) volumes of alienated crude gas;
2) prices of alienated crude gas;
3) the point of supply of crude gas

Significant

43

Compliance with the obligation to approve and submit for examination a project for the conservation of a subsoil plot within two months from the date of termination of the right to subsoil use or suspension of the contract for subsoil use of hydrocarbons, as well as completion of the conservation of a subsoil plot within the time limits established in the conservation project

Significant

44

Compliance with the prohibition on conducting activities in the field of production and (or) turnover of oil and gas condensate, operations on production and (or) turnover of crude oil and gas condensate without equipping production facilities with metering devices and ensuring their functioning

Gross

45

Compliance with the requirement on the provision by entities operating in the field of crude oil and gas condensate turnover of access to the authorized body in the field of hydrocarbons to their existing accounting systems for data on the amount of crude oil and gas condensate in turnover, prepared for delivery to the consumer

Significant

46

Compliance with the requirements for rationing the injection of working agent into wells and formations in wells by conducting it once a quarter and formalizing it in the form of a technological operating mode for each injection well, approved by the management of the subsoil user, indicating:
1) daily volume of working agent injection;
2) basic requirements for the properties of the injected agent;
3) discharge pressure;
4) measures to ensure established injection standards

Significant

47

Compliance with the requirement to exclude selective drilling and compaction of the design grid of the most productive part of the deposit, the exploitation object and sections of the deposit with the greatest thickness in order to regulate or increase oil production

Significant

48

Compliance with the requirement to submit an application for oil supply for the formation of oil supply schedules on a monthly basis before the fifth day of the month preceding the reporting month

Significant


  Appendix 3
to the Criteria for assessing the degree
of risk when conducting
subsoil use operations in the field
of hydrocarbons

The degrees of violations of requirements when conducting subsoil use operations
n the field of hydrocarbons at sea in relation to individuals or legal entities
who have the right to conduct subsoil use operations for hydrocarbon exploration

      Footnote. Appendix 3 is in the wording of the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

Item №

Requirement

Degree of violation

1

Compliance with the obligation to immediately suspend subsoil use operations in the event of non-compliance with the provision of liquidation of the consequences of subsoil use or its termination, as well as in its absence

Significant

2

Compliance with the obligation to supply hydrocarbons produced during the exploration period in full to the domestic market of the Republic of Kazakhstan, with the exception of hydrocarbons consumed for own technological needs or burned in cases of threat or emergency situations, threats to the lives of personnel or public health and the environment; when testing well objects; during trial exploitation of the deposit

Significant

3

Compliance with the requirements for maintaining and storing information (documents) on subsoil use in electronic and paper format, namely:
on the operation of wells and the implementation of geological and technical measures;
materials on operating modes of wells;
about all works on the production of hydrocarbons;
primary documentation for the field;
on the repair works carried out, its content, the period between repairs of equipment and wells, as well as the technical and economic efficiency of the works performed throughout the entire period of operation of the facility;
all materials (acts, orders, protocols, and other materials) on conservation and (or) liquidation of oil, gas, and injection wells for various purposes during exploration and production of hydrocarbons

Significant

4

Compliance with the obligation to take over the balance of all previously drilled wells located on the territory of the subsoil plot, conducting monitoring of them

Significant

5

Compliance with the requirement to carry out subsoil use operations in accordance with the project document, as well as the prohibition on carrying out such works in the absence of a project document

Gross

6

Compliance with the requirements for field development in accordance with the technical project document

Gross

7

Compliance with the obligation to ensure reliable accounting of produced hydrocarbons

Significant

8

Compliance with the requirements for the liquidation of the consequences of subsoil use of hydrocarbons and (or) the conservation of a subsoil plot

Significant

9

Compliance with the requirements for liquidation and (or) conservation of technological facilities

Significant

10

Compliance with the obligation to submit to the authorized body in the field of hydrocarbons annual (for one financial year) and medium-term (for five financial years) programs for the procurement of goods, works, and services no later than February 1 (first) of the year planned for procurement, or no later than 60 (sixty ) calendar days from the date of conclusion of the contract, as well as information on the planned acquisition of paid services of the operator in the event of its involvement by the subsoil user

Significant

11

Compliance with the requirement to submit the following reports to the authorized body in the field of hydrocarbons in the forms and procedures established by the legislation through a unified state subsoil use management system with a certified electronic digital signature of the first head or authorized representative:
1) on the purchased goods, works, and services, as well as the amount of intra-country value in them;
2) on the intra-country value in personnel;
3) on the costs of financing the training of Kazakhstani personnel;
4) on expenses for scientific-research, scientific-technical and development works;
5) on the fulfillment of license and contract conditions;
6) on the composition of persons and (or) organizations directly or indirectly controlling the subsoil user;
7) on daily information on the production and delivery of oil and gas condensate;
8) on monthly information on oil production, gas condensate and development stages by fields (wells);
9) on the actual monthly production and delivery of oil and gas condensate;
10) on monthly information on the oil balance;
11) on monthly information on the company’s oil prices;
12) on monthly information on production, delivery, and balances of oil and gas condensate by recipients;
13) on annual information on the plan for production and delivery of oil and gas condensate;
14) on daily information on the production of associated and natural gas;
15) on the actual monthly production of associated and natural gas;
16) on monthly information on the movement of associated and natural gas;
17) on annual information on the production plan for associated and natural gas

Significant

12

Compliance with the requirement to monitor the execution by the subsoil user of the annual report on the author's supervision of the implementation of the exploration project (with the exception of the exploration project, which does not involve drilling and (or) testing of wells), the implementation of the project document for trial operation and sending them in a notification manner to the competent body

Significant

13

Compliance with the prohibition on burning crude gas in flares without permission from the authorized body, except in cases of threat or emergency situations, threat to the life of personnel or public health and the environment

Gross

14

Compliance with the obligation to notify the authorized bodies in the field of hydrocarbons and environmental protection in writing within ten days when burning crude gas in flares without permission, indicating the reasons why the burning of crude gas occurred, and information about the volumes of burned crude gas in case of threat or emergency situations, threats to the life of personnel or public health and the environment

Significant

15

Availability of a program for the development of crude gas processing approved by the authorized body in the field of hydrocarbons

Significant

16

Compliance with the requirement to send annual reports to the authorized body in the field of hydrocarbons on the implementation of programs for the development of crude gas processing

Non-significant

17

Compliance with the requirement for independent testing of each productive formation when testing the formation and testing wells for the period established by the project document, but not more than 90 (ninety) days for each test object with a complex of field geological and hydrodynamic studies

Non-significant

18

Compliance with the prohibition on the operation of wells:
in which there was an uncontrolled gas breakthrough through the formation, or through the annulus;
in the absence of pumping and compressor pipes;
in the absence of downhole and ground-based equipment that provides separate accounting of produced products and carrying out field studies of each object with the simultaneous separate operation of two or more objects by one well;
fountain or transferred to a mechanized method through the intertubular (annular) space;
with a gas factor exceeding the design values specified in the basic project documents and project documents for the exploration and production of hydrocarbons;
for forced extraction of liquid in wells at pressures below the permissible downhole pressure, unless otherwise provided in the project document;
without equipment for individual or group flow measurement and wells testing;
without manometers of wellhead and annular pressures, devices for taking wellhead samples and measuring the temperature at the mouth, reinforcement pads and lubricators for launching deep instruments into wells (manometers, thermometers, flow meters, samplers)

Gross

19

The presence in the technological mode of wells operation of the technological rate of liquid extraction – for each producing well and the volume of the injected displacing agent (injectivity) – for each injection well

Non-significant

20

Availability of technological modes of operation of producing wells, compiled monthly or once a quarter, depending on the stability of the development conditions of the facility. Simultaneously with the technological modes of operation of producing wells, a plan of geological and technical measures is drawn up and approved to ensure the norms of liquid extraction from wells and the operational facility as a whole

Non-significant

21

Compliance with the prohibition on hydraulic fracturing of reservoir deposits with thin seals in order to avoid depressurization of hydrocarbon deposits

Gross

22

Compliance with the requirements for the formation of a tender commission in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Non-significant

23

Preventing the establishment of other requirements in the tender documentation that are not provided for by the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Gross

24

Compliance with the requirements for placing an announcement of an open tender and tender documentation in the register (system) in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Non-significant

25

Preventing unreasonable admission and (or) rejection by the customer of competitive bids from potential suppliers in violation of the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Gross

26

Compliance with the requirements for the content and conditions of concluding an agreement on the purchase of goods, works and services

Significant

27

Compliance with the obligation to purchase goods, works and services used in conducting operations for the exploration or production of hydrocarbons using open tender methods, from a single source and open tender for reduction (electronic bidding) using a register of goods, works, and services used in conducting subsoil use operations, and their manufacturers or other electronic procurement systems located in the Kazakhstani segment of the Internet, the operation of which is synchronized with the operation of such a register

Significant

28

Compliance with the requirement for a conditional reduction in the price of the tender application of the tender participants - Kazakhstani producers of works and services by twenty percent when determining the winner of the tender for the purchase of works and services

Significant

29

Compliance with the obligation to approve and submit for examination a conservation project for a subsoil plot within two months from the date of termination of the right to subsoil use or suspension of a contract for subsoil use for hydrocarbons, as well as completion of conservation of a subsoil plot within the time limits established in the conservation project

Significant

30

Compliance with the prohibition on activities in the field of production and (or) turnover of oil and gas condensate, operations on production and (or) turnover of crude oil and gas condensate without equipping production facilities with metering devices and ensuring their functioning

Gross

31

Compliance with the requirement on the provision by entities operating in the field of crude oil and gas condensate turnover of access to the authorized body in the field of hydrocarbons to their existing accounting systems for data on the amount of crude oil and gas condensate in turnover, prepared for delivery to the consumer

Significant

32

Compliance with the requirement to submit an application for oil supply for the formation of oil supply schedules on a monthly basis before the fifth day of the month preceding the reporting month

Significant

33

Compliance with the prohibition:
for the construction and operation of oil storage facilities and reservoirs at sea;
for the storage and storage of oil at offshore facilities, with the exception of temporary (no more than twenty calendar days) oil storage when transporting oil by tankers directly from offshore facilities

Gross

34

Compliance with the prohibition on operations at facilities that pose a risk of oil spills, with the exception of ships, without:
1) conducting an oil spill risk assessment;
2) approved site plan;
3) availability of own or attracted resources on the basis of a contract

Gross

35

Compliance with the obligation of owners of facilities bearing the risk of an oil spill, with the exception of ships:
1) for the liquidation of first–level oil spills at sea - to have available at an offshore facility or within thirty-minute reach the resources necessary for the complete elimination of such oil spills;
2) for the liquidation of second-level oil spills at sea:
to have resources available at an offshore facility either within thirty minutes of reach, in an amount sufficient for the period until the arrival of resources from local coastal services, or to conclude contracts with specialized organizations for the elimination of oil spills at sea

Significant

36

Compliance with the obligation of the owner of the facility to conclude an agreement with a specialized organization for the liquidation of oil spills at sea, which has international recognition, qualified personnel and appropriate equipment

Significant


  Appendix 4
to the Criteria for assessing the degree
of risk when conducting
  subsoil use operations in the field
of hydrocarbons

The degrees of violation of requirements when conducting subsoil use operations
in the field of hydrocarbons at sea in relation to individuals or legal entities having
the right to conduct subsoil use operations for hydrocarbons production

      Footnote. Appendix 4 is in the wording of the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

Item №

Requirement

Degree of violation

1

Compliance with the obligation to immediately suspend subsoil use operations in the event of non-compliance with the provision for liquidation of the consequences of subsoil use or its termination, as well as in its absence

Significant

2

Compliance with the obligation to supply hydrocarbons, including those produced during the exploration period, in full to the domestic market of the Republic of Kazakhstan, with the exception of hydrocarbons consumed for own technological needs or burned in cases of threat or emergency situations, threat to the life of personnel or the health of the population and the environment environment; when testing well objects; with technologically inevitable combustion of crude gas

Significant

3

Compliance with the requirements for maintaining and storing information (documents) on subsoil use in electronic and paper format, namely:
on the operation of wells and the implementation of geological and technical measures;
materials on well operating modes;
about all works on hydrocarbon production;
primary documentation for the field;
on the repair works carried out, its content, the period between repairs of equipment and wells, as well as the technical and economic efficiency of the work performed throughout the entire period of the facility operation;
all materials (acts, orders, protocols and other materials) on conservation and (or) liquidation of oil, gas and injection wells for various purposes during exploration and production of hydrocarbons

Significant

4

Compliance with the obligation to take over the balance of all previously drilled wells located on the territory of the subsoil plot, conducting monitoring of them

Significant

5

Compliance with the requirement to carry out subsoil use operations in accordance with the project document, as well as the prohibition on carrying out such works in the absence of a project document

Gross

6

Compliance with the requirements for field development in accordance with the technical project document

Gross

7

Compliance with the obligation to ensure reliable accounting of produced hydrocarbons

Significant

8

Compliance with the requirements on carrying out works:
for additional exploration in accordance with the field development project;
assessment of a new deposit discovered during additional exploration, in accordance with the addition to the field development project

Significant

9

Compliance with the requirements for the liquidation of consequences of subsoil use of hydrocarbons and (or) the conservation of a subsoil plot

Significant

10

Compliance with the requirements for liquidation and (or) conservation of technological facilities

Significant

11

Compliance with the obligation to supply oil for processing on the territory of the Republic of Kazakhstan, and in the event of a shutdown of the oil refinery due to an emergency - and beyond, in order to meet the needs of the domestic market with petroleum products

Significant

12

Compliance with the requirement to alienate or transfer to processing a wide fraction of light hydrocarbons produced by it

Significant

13

Compliance with the obligation to submit to the authorized body in the field of hydrocarbons annual (for one financial year) and medium-term (for five financial years) programs for the procurement of goods, works, and services no later than February 1 (first) of the year planned for procurement, or no later than 60 (sixty) calendar days from the date of conclusion of the contract, as well as information on the planned acquisition of paid services of the operator in the event of its involvement by the subsoil user

Significant

14

Compliance with the requirement to submit the following reports to the authorized body in the field of hydrocarbons in the forms and procedures established by the legislation through a unified state subsoil use management system with a certified electronic digital signature of the first head or authorized representative:
1) on the purchased goods, works, and services, as well as the amount of intra-country value in them;
2) on the intra-country value in personnel;
3) on the costs of financing the training of Kazakhstani personnel;
4) on expenses for scientific-research, scientific-technical and development works;
5) on the fulfillment of license and contract conditions;
6) on the composition of persons and (or) organizations directly or indirectly controlling the subsoil user;
7) on daily information on the production and delivery of oil and gas condensate;
8) on monthly information on oil production, gas condensate and development stages by fields (wells);
9) on the actual monthly production and delivery of oil and gas condensate;
10) on monthly information on the oil balance;
11) on monthly information on the company’s oil prices;
12) on monthly information on production, delivery and balances of oil and gas condensate by recipients;
13) on annual information on the plan for production and delivery of oil and gas condensate;
14) on daily information on the production of associated and natural gas;
15) on the actual monthly production of associated and natural gas;
16) on monthly information on the movement of associated and natural gas;
17) on annual information on the production plan for associated and natural gas

Significant

15

Compliance with the requirement to monitor the implementation by the subsoil user of the field development project through annual supervision by the project organization and analysis of the development of hydrocarbon fields, carried out at least once every three years and sending them in a notification procedure to the competent body

Significant

16

Availability of state examination of project documents, results of analysis of hydrocarbon field development in case of significant (more than ten percent) discrepancies between actual and project indicators of field development

Significant

17

Compliance with the prohibition on burning crude gas in flares without permission from the authorized body, except in cases of threat or emergency situations, threat to the life of personnel or public health and the environment

Gross

18

Compliance with the obligation to notify the authorized bodies in the field of hydrocarbons and environmental protection in writing within ten days when burning crude gas in flares without permission, indicating the reasons why the burning of crude gas occurred, and information about the volumes of burned crude gas in case of threat or emergency situations, threats to the life of personnel or public health and the environment

Significant

19

Compliance with the obligation to conduct an investigation and submit quarterly reports to the authorized body in the field of hydrocarbons no later than the twenty-fifth day of the month following the reporting quarter, indicating information about the time and volumes of gas burned for each case of technological failures, breakdowns and deviations in the operation of process equipment, and also their reasons

Significant

20

Availability of a program for the development of crude gas processing approved by the authorized body in the field of hydrocarbons

Significant

21

Compliance with the requirement to send annual reports to the authorized body in the field of hydrocarbons on the implementation of programs for the development of crude gas processing

Non-significant

22

Compliance with the prohibition:
for the construction and operation of oil storage facilities and reservoirs at sea;
for the storage and warehousing of oil at offshore facilities, with the exception of temporary (no more than twenty calendar days) storage of oil during the transportation of such oil by tankers directly from offshore facilities

Gross

23

Compliance with the requirement for independent testing of each productive formation when testing the formation and testing wells for the period established by the project document, but not more than 90 (ninety) days for each test object with a complex of field geological and hydrodynamic studies

Non-significant

24

Prevention of unjustified release of gas from the gas cap and degassing of oil in reservoir conditions, leading to a decrease in the recovery coefficient of the main product (liquid hydrocarbons)

Significant

25

Compliance with the prohibition on the operation of wells:
with bottomhole pressures lower than those provided for in the project documents;
in which there was an uncontrolled gas breakthrough through the formation, or through the annulus;
in the absence of pumping and compressor pipes;
with a gas factor exceeding the design values specified in the basic project documents and project documents for exploration and production of hydrocarbons;
in the absence of downhole and ground-based equipment that provides separate accounting of produced products and field studies of each object with simultaneous separate operation of two or more objects by one well;
fountain or transferred to a mechanized method through the intertubular (annular) space;
with a gas factor exceeding the project values specified in the basic project documents and project documents for the exploration and production of hydrocarbons;
for forced extraction of liquid in wells at pressures below the permissible downhole pressure, unless otherwise provided in the project document;
without equipment for individual or group flow measurement and well testing;
without manometers of wellhead and annular pressures, devices for taking wellhead samples and measuring the temperature at the mouth, reinforcement pads and lubricators for launching deep instruments into wells (manometers, thermometers, flow meters, samplers);
not prepared for individual performance of a complex of field studies in them

Gross

26

The presence in the technological mode of operation of wells of the technological rate of liquid extraction – for each producing well and the volume of the injected displacing agent (injectivity) – for each injection well

Non-significant

27

Availability of technological operation modes of producing wells, compiled monthly or once a quarter, depending on the stability of the development conditions of the facility. Simultaneously with the technological modes of operation of producing wells, a plan of geological and technical measures is drawn up and approved to ensure the norms of liquid extraction from wells and the operational facility as a whole

Non-significant

28

Compliance with the requirements for conducting:
a set of studies for each operational facility (determination of the component composition of the formation fluid, viscosity, density, saturation pressure, gas content, volume coefficient, compositions of released gas and degassed oil, as well as the dependence of gas content, volumetric coefficient and density of the formation fluid on pressure) in accordance with the schedule of deep samples of oil/ gas condensate from wells, taking into account the commissioning of new wells and their uniform distribution over the area of the deposit;
mandatory complex of field studies in the development of oil and gas fields

Significant

29

Availability of manometers and flow meters on the flow lines of wellhead fittings during the gas-lift method of operating production wells to measure and regulate the pressure and flow rate of the working gas

Significant

30

Compliance with the requirement to change the technological regime of wells or perform appropriate insulation works when breaking through to the bottom of gas or water wells

Significant

31

Compliance with the prohibition on hydraulic fracturing of reservoir deposits with thin seals in order to avoid depressurization of hydrocarbon deposits

Gross

32

Compliance with the requirements for maintaining records of gas production, reflecting the production of utilized gas, gas losses during wells testing and various purges, as well as during emergency blowouts

Significant

33

Compliance with the requirements for the formation of a tender commission in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Non-significant

34

Preventing the establishment of other requirements in the tender documentation that are not provided for by the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Gross

35

Compliance with the requirements for placing an announcement of an open tender and tender documentation in the register (system) in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Non-significant

36

Prevention of unjustified admission and (or) rejection by the customer of tender bids from potential suppliers in violation of the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons

Gross

37

Compliance with the requirements for the content and conditions of concluding an agreement on the purchase of goods, works and services

Significant

38

Compliance with the obligation to purchase goods, works and services used in conducting operations for the exploration or production of hydrocarbons using open tender methods, from a single source and open tender for reduction (electronic bidding) using a register of goods, works and services used in conducting subsoil use operations, and their manufacturers or other electronic procurement systems located in the Kazakhstani segment of the Internet, the operation of which is synchronized with the operation of such a register

Significant

39

Compliance with the requirement for a conditional reduction in the price of the tender application of the tender participants - Kazakhstani producers of works and services by twenty percent when determining the winner of the competition for the acquisition of works and services

Significant

40

Compliance with the state’s preemptive right to purchase alienated crude gas owned by subsoil users

Significant

41

Compliance by subsoil users intending to alienate crude gas with the requirements to submit for examination to the authorized body calculations of the maximum price of crude gas purchased by the national operator within the framework of the preemptive right of the state, confirmed by documents, no later than January 1 of the coming year

Significant

42

Compliance by subsoil users with the requirements not to exceed the price of crude gas purchased by the national operator within the framework of the preemptive right of the state approved by the authorized body

Significant

43

Compliance by subsoil users intending to alienate crude gas, no later than five months before the start of the planned period, with the requirement to send a commercial proposal to the national operator indicating:
1) volumes of alienated crude gas;
2) prices of alienated crude gas;
3) crude gas supply point

Significant

44

Compliance with the obligation to approve and submit for examination a conservation project for a subsoil plot within two months from the date of termination of the right to subsoil use or suspension of a contract for subsoil use for hydrocarbons, as well as completion of conservation of a subsoil plot within the time limits established in the conservation project

Significant

45

Compliance with the prohibition on activities in the field of production and (or) turnover of oil and gas condensate, operations on production and (or) turnover of crude oil and gas condensate without equipping production facilities with metering devices and ensuring their functioning

Gross

46

Compliance with the requirement on the provision by entities operating in the field of crude oil and gas condensate turnover of access to the authorized body in the field of hydrocarbons to their existing accounting systems for data on the amount of crude oil and gas condensate in turnover, prepared for delivery to the consumer

Significant

47

Compliance with the requirement for rationing the injection of working agent into wells and formations in wells by conducting it once a quarter and formalizing it in the form of a technological operating regime for each injection well, approved by the management of the subsoil user, indicating:
1) daily volume of working agent injection;
2) basic requirements for the properties of the injected agent;
3) discharge pressure;
4) measures to ensure established injection standards

Significant

48

Compliance with the requirement to exclude selective drilling and compaction of the design grid of the most productive part of the deposit, the exploitation object and sections of the deposit with the greatest thickness in order to regulate or increase oil production

Significant

49

Compliance with the requirement to submit an application for oil supply for the formation of oil supply schedules on a monthly basis before the fifth day of the month preceding the reporting month

Significant

50

Compliance with the prohibition on operations at facilities that pose a risk of oil spills, with the exception of ships, without:
1) conducting an oil spill risk assessment;
2) approved site plan;
3) availability of own or attracted resources on the basis of a contract

Gross

51

Compliance with the obligation of facilities owners bearing the risk of an oil spill, with the exception of ships:
1) for the liquidation of first–level oil spills at sea - to have available at an offshore facility or within thirty-minute reach the resources necessary for the complete elimination of such oil spills;
2) for the liquidation of second-level oil spills at sea:
to have resources available at an offshore facility either within thirty minutes of reach, in an amount sufficient for the period until the arrival of resources from local coastal services, or to conclude contracts with specialized organizations for the liquidation of oil spills at sea

Significant

52

Compliance with the obligation of the facility owner to conclude contract with a specialized organization for the liquidation of oil spills at sea, which has international recognition, qualified personnel and appropriate equipment

Significant

  Appendix 5
to the Criteria for assessing the degree
of risk when conducting
subsoil use operations in the field
of hydrocarbons

The degrees of violations of requirements when conducting subsoil use operations
in the field of hydrocarbons in relation to individuals or legal entities
with permission to create and locate offshore facilities

      Footnote. The criteria have been supplemented by Appendix 5 in accordance with the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

№ s/n

Requirement

Degree of violation

1

Availability of permission to locate and create marine facilities

Gross

2

Availability of a contract for subsoil use

Gross

3

Placement and creation of a marine facility on the permitted geographic coordinates of the territory of marine facilities

Gross

4

Creation of a marine facility within the approved time frame

Gross

5

Compliance with the conditions for the placement of marine facilities

Gross

  Appendix 6
to the Criteria for assessing the degree
of risk when conducting
subsoil use operations in the field
of hydrocarbons

List of subjective criteria for determining the degree of risk according to subjective criteria
when conducting subsoil use operations in the field of hydrocarbons on land in relation
to individuals or legal entities having the right to conduct subsoil use operations
for hydrocarbon exploration

      Footnote. The criteria are supplemented by Appendix 6 in accordance with the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 06.01.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

№ s/n

Indicator of the subjective criterion

Source of information on the indicator of the subjective criterion

Specific weight by significance, score (in total should not exceed 100 points), wi

Conditions/values, xi
 

condition 1/value

condition 2/value

1

Availability of information on gas combustion without the permission of the authorized body based on the results of analysis of reports on the actual monthly production of associated and natural gas, on monthly information on the movement of associated and natural gas, on annual information on the associated and natural gas production plan, on the fulfillment of license and contract conditions, as well as a report on the implementation of the crude gas processing development program

Results of monitoring of reports and information

inclusion in the list for preventive control with a visit to the subject (object) of control

0 violations

1 or more violations

0 %

100 %

  Appendix 7
to the Criteria for assessing the degree
of risk when conducting
subsoil use operations in the field
of hydrocarbons

List of subjective criteria for determining the degree of risk according to subjective criteria
when conducting subsoil use operations in the field of hydrocarbons on land in relation to individuals
or legal entities who have the right to conduct subsoil use operations for hydrocarbon production

      Footnote. The criteria have been supplemented by Appendix 7 in accordance with the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

№ s/n

Indicator of the subjective criterion

Source of information on the indicator of the subjective criterion

Specific weight by significance, score (in total should not exceed 100 points), wi

Conditions/values, xi

condition1/value

condition 2/value

1

Availability of information on gas combustion without the permission of the authorized body based on the results of analysis of reports on the actual monthly production of associated and natural gas, on monthly information on the movement of associated and natural gas, on annual information on the associated and natural gas production plan, on the fulfillment of license and contract conditions, as well as a report on the implementation of the crude gas processing development program

Results of monitoring of reports and information

inclusion in the list for preventive control with a visit to the subject (object) of control

0 violations

1 or more violations
 

0 %
 

100%

  Appendix 8
to the Criteria for assessing the degree
of risk when conducting
subsoil use operations in the field
of hydrocarbons

List of subjective criteria for determining the degree of risk according to subjective criteria
when conducting subsoil use operations in the field of hydrocarbons at sea in relation to individuals
or legal entities who have the right to conduct subsoil use operations for hydrocarbon exploration

      Footnote. The criteria have been supplemented by Appendix 8 in accordance with the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

№ s/n

Indicator of the subjective criterion

Source of information on the indicator of the subjective criterion

Specific weight by significance, score (in total should not exceed 100 points), wi

Conditions/values, xi
 

condition 1/value

condition 2/value

1

Availability of information on gas combustion without the permission of the authorized body based on the results of analysis of reports on the actual monthly production of associated and natural gas, on monthly information on the movement of associated and natural gas, on annual information on the associated and natural gas production plan, on the fulfillment of license and contract conditions, as well as a report on the implementation of the crude gas processing development program

Results of monitoring of reports and information

inclusion in the list for preventive control with a visit to the subject (object) of control

0 violations

1 or more violations

0 %

100 %

  Appendix 9
to the Criteria for assessing the degree
of risk when conducting
subsoil use operations in the field
of hydrocarbons

List of subjective criteria for determining the degree of risk according to subjective criteria
when conducting subsoil use operations in the field of hydrocarbons at sea in relation
to individuals or legal entities having the right to conduct subsoil use operations for hydrocarbon production

      Footnote. The criteria have been supplemented by Appendix 9 in accordance with the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

№ s/n

Indicator of the subjective criterion

Source of information on the indicator of the subjective criterion

Specific weight by significance, score (in total should not exceed 100 points), wi

Conditions/values xi,

condition 1/value

condition 2/value

1

Availability of information on gas combustion without the permission of the authorized body based on the results of analysis of reports on the actual monthly production of associated and natural gas, on monthly information on the movement of associated and natural gas, on annual information on the associated and natural gas production plan, on the fulfillment of license and contract conditions, as well as a report on the implementation of the crude gas processing development program

Results of monitoring of reports and information

inclusion in the list for preventive control with a visit to the subject (object) of control

0 violations

1 or more violations

0 %

100 %

  Appendix 2
to the joint order
of the Minister of Energy
of the Republic of Kazakhstan
dated November 23, 2018
№ 453 and acting Minister
of National Economy
of the Republic of Kazakhstan
dated November 23, 2018 № 77

Checklist when conducting subsoil use operations in the field of hydrocarbons on land
in relation to individuals or legal entities who have the right to conduct subsoil use operations
for hydrocarbon exploration

      Footnote. Appendix 2 is in the wording of the joint order of the acting Minister of Energy of the Republic of Kazakhstan dated 29.11.2022 № 382 and acting Minister of National Economy of the Republic of Kazakhstan dated 30.11.2022 № 101 (shall be enforced from 01.01.2023); as amended by the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

      The state body that appointed an inspection / preventive control with

      a visit to the subject (object) of control _________________________________

      _____________________________________________________________________

      An act on the appointment of an inspection/preventive control with a visit to the subject

      (object) of control _____________________________________________________

      (№, date)

      Name of the subject (object) of control ________________________________

      ______________________________________________________________________

      Individual identification number/business identification number of the entity

      (object) of control_____________________________________________________

      Location address ________________________________________________

      _____________________________________________________________________

№

List of requirements

Meets the requirements

Does not meet the requirements

1

2

3

4

1

Compliance with the obligation to immediately suspend subsoil use operations in the event of non-compliance with the provision for liquidation of the consequences of subsoil use or its termination, as well as in its absence



2

Compliance with the obligation to supply hydrocarbons produced during the exploration period in full to the domestic market of the Republic of Kazakhstan, with the exception of hydrocarbons consumed for own technological needs or burned in cases of threat or emergency situations, threats to the lives of personnel or public health and the environment; when testing well objects; during trial exploitation of the deposit



3

Compliance with the requirements for maintaining and storing information (documents) on subsoil use in electronic and paper format, namely:
on the operation of wells and the implementation of geological and technical measures;
materials on wells operating modes;
about all works on hydrocarbon production;
primary documentation for the deposit;
about the repair works carried out, its content, the period between repairs of equipment and wells, as well as the technical and economic efficiency of the works performed throughout the entire period of operation of the facility;
all materials (acts, orders, protocols, and other materials) on conservation and (or) liquidation of oil, gas, and injection wells for various purposes during exploration and production of hydrocarbons



4

Compliance with the obligation to take over the balance of all previously drilled wells located on the territory of the subsoil plot and conduct monitoring of them



5

Compliance with the requirement to carry out subsoil use operations in accordance with the project document, as well as the prohibition on carrying out such works in the absence of a project document



6

Compliance with the requirements for the development of the deposit in accordance with the technical design document



7

Compliance with the obligation to ensure reliable accounting of produced hydrocarbons



8

Compliance with the requirement to eliminate the consequences of subsoil use of hydrocarbons and (or) conservation of a subsoil area



9

Compliance with the requirements for liquidation and (or) conservation of technological facilities



10

Compliance with the obligation to submit to the authorized body in the field of hydrocarbons annual (for one financial year) and medium-term (for five financial years) programs for the procurement of goods, works, and services no later than February 1 (first) of the year planned for procurement, or no later than 60 (sixty ) calendar days from the date of conclusion of the contract, as well as information on the planned acquisition of paid services of the operator in the event of its involvement by the subsoil user



11

Compliance with the requirement to submit the following reports to the authorized body in the field of hydrocarbons in the forms and procedures established by the legislation through a unified state subsoil use management system with a certified electronic digital signature of the first head or authorized representative:
1) on the purchased goods, works and services, as well as the amount of intra-country value in them;
2) on the intra-country value in personnel;
3) on the costs of financing the training of Kazakhstani personnel;
4) on expenses for scientific-research, scientific-technical and development works;
5) on the fulfillment of license and contract conditions;
6) on the composition of persons and (or) organizations directly or indirectly controlling the subsoil user;
7) on daily information on the production and delivery of oil and gas condensate;
8) on monthly information on oil production, gas condensate and development stages by fields (wells);
9) on the actual monthly production and delivery of oil and gas condensate;
10) on monthly information on the oil balance;
11) on monthly information on the company’s oil prices;
12) on monthly information on production, delivery, and balances of oil and gas condensate by recipients;
13) on annual information on the plan for production and delivery of oil and gas condensate;
14) on daily information on the production of associated and natural gas;
15) on the actual monthly production of associated and natural gas;
16) on monthly information on the movement of associated and natural gas;
17) on annual information on the production plan for associated and natural gas



12

Compliance with the requirement to carry out monitoring of the execution by the subsoil user of the annual report on author's supervision of the implementation of the exploration project (with the exception of an exploration project that does not include drilling and (or) testing of wells), the implementation of the project document for trial operation and sending them in a notification manner to the competent organ



13

Compliance with the prohibition on burning crude gas in flares without the permission of the authorized body, except in cases of threat or occurrence of emergency situations, threats to the life of personnel or public health and the environment



14

Compliance with the obligation to notify the authorized bodies in the field of hydrocarbons and environmental protection in writing within ten days when burning crude gas in flares without permission, indicating the reasons why the burning of crude gas occurred, and information about the volumes of burned crude gas in case of threat or emergency situations, threats to the life of personnel or public health and the environment



15

Availability of a program for the development of crude gas processing approved by the authorized body in the field of hydrocarbons



16

Compliance with the requirement to send annual reports to the authorized body in the field of hydrocarbons on the implementation of programs for the development of crude gas processing



17

Compliance with the requirement for independent testing of each productive formation when testing the formation and testing wells for the period established by the project document, but not more than 90 (ninety) days for each test object with a complex of field geological and hydrodynamic studies



18

Compliance with the prohibition on the operation of wells:
in which there was an uncontrolled gas breakthrough through the reservoir, or through the backwater space;
in the absence of pumping and compressor pipes;
in the absence of downhole and ground-based equipment that provides separate accounting of extracted products and conducting field studies of each object with the simultaneous separate operation of two or more objects by one well;
for forced withdrawal of fluid in wells at pressures below the permissible value of bottomhole pressure, unless otherwise provided by the document;
fountain or transferred to a mechanized method through the intertubular (annular) space;
with a gas factor exceeding the design values specified in the basic project documents and project documents for the exploration and production of hydrocarbons;
for forced extraction of liquid in wells at pressures below the permissible downhole pressure, unless otherwise provided in the project document;
without equipment for individual or group flow measurement and well exploration;
without manometers of wellhead and annular pressures, devices for taking wellhead samples and measuring the temperature at the mouth, reinforcement pads, and lubricators for launching deep instruments into wells (manometers, thermometers, flow meters, samplers)



19

Availability in the technological mode of wells operation of the technological rate of liquid extraction – for each producing well and the volume of the injected displacing agent (injectivity) – for each injection well



20

Availability of technological operating modes for production wells, compiled monthly or once a quarter, depending on the stability of the development conditions of the facility. Simultaneously with the technological operating modes of production wells, a plan of geological and technical measures is drawn up and approved to ensure standards for liquid extraction from wells and the operational facility as a whole.



21

Compliance with the prohibition on hydraulic fracturing of reservoir deposits with thin seals in order to avoid depressurization of hydrocarbon deposits



22

Compliance with the requirements for the formation of a tender commission in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works, and services used in conducting operations for the exploration or production of hydrocarbons



23

Preventing the establishment of other requirements in the tender documentation that are not provided for by the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



24

Compliance with the requirements for placing an announcement of an open tender and tender documentation in the register (system) in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



25

Preventing unreasonable admission and (or) rejection by the customer of competitive bids from potential suppliers in violation of the procedure for the acquisition by subsoil users and their contractors of goods, works, and services used in conducting operations for the exploration or production of hydrocarbons



26

Compliance with the requirements for the content and conditions of concluding an agreement on the purchase of goods, works and services



27

Compliance with the obligation to purchase goods, works and services used in conducting operations for the exploration or production of hydrocarbons by means of an open tender, from a single source and an open tender for reduction (electronic bidding) using the register of goods, works and services used in hydrocarbon operations subsoil use and their manufacturers or other electronic procurement systems located in the Kazakhstani segment of the Internet, the work of which is synchronized with the work of such a registry



28

Compliance with the requirement for a conditional reduction in the price of the competitive bid of the tender participants - Kazakhstani producers of works and services by twenty percent when determining the winner of the tender for the acquisition of works and services



29

Compliance with the obligation to approve and submit for examination a project for the conservation of a subsoil plot within two months from the date of termination of the right to subsoil use or suspension of the contract for subsoil use of hydrocarbons, as well as completion of the conservation of a subsoil plot within the time limits established in the conservation project



30

Compliance with the prohibition on carrying out activities in the field of production and (or) turnover of oil and gas condensate, operations for the production and (or) turnover of crude oil and gas condensate without equipping production facilities with metering devices and ensuring their functioning



31

Compliance with the requirement on the provision by entities operating in the field of crude oil and gas condensate turnover of access to the authorized body in the field of hydrocarbons to their existing accounting systems for data on the amount of crude oil and gas condensate in turnover, prepared for delivery to the consumer



32

Compliance with the requirement to submit an application for oil supply for the formation of oil supply schedules on a monthly basis before the fifth day of the month preceding the reporting month



      Official(s)

      __________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

      _________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

      Head of the subject of control

      __________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

  Appendix 3
to the joint order
of the Minister of Energy
of the Republic of Kazakhstan
dated November 23, 2018
№ 453 and acting Minister
of National Economy
of the Republic of Kazakhstan
  dated November 23, 2018 № 77

Checklist when conducting subsoil use operations in the field of hydrocarbons
on land in relation to individuals or legal entities who have the right to conduct
subsoil use operations for hydrocarbon production

      Footnote. Appendix 3 is in the wording of the joint order of the acting Minister of Energy of the Republic of Kazakhstan dated 29.11.2022 № 382 and acting Minister of National Economy of the Republic of Kazakhstan dated 30.11.12022 № 101 (shall be enforced from 01.01.2023); as amended by the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

      The state body that appointed an inspection/preventive control with

      a visit to the subject (object) of control _________________________________

      _____________________________________________________________________

      An act on the appointment of an inspection/preventive control with a visit to the subject

      (object) of control _____________________________________________________

      (№, date)

      Name of the subject (object) of control ________________________________

      ______________________________________________________________________

      Individual identification number/business identification number of the subject

      (object) of control_____________________________________________________

      Location address ________________________________________________

      _____________________________________________________________________


№

List of requirements

Meets the requirements

Does not meet the requirements

1

2

3

4

1

Compliance with the obligation to immediately suspend subsoil use operations in the event of non-compliance with the provision for liquidation of the consequences of subsoil use or its termination, as well as in its absence



2

Compliance with the obligation to supply hydrocarbons, including those produced during the exploration period, in full to the domestic market of the Republic of Kazakhstan, with the exception of hydrocarbons consumed for own technological needs or burned in cases of threat or emergency situations, threat to the life of personnel or the health of the population and the environment; when testing well objects; with technologically inevitable combustion of crude gas



3

Compliance with the requirements for maintaining and storing information (documents) on subsoil use in electronic and paper format, namely:
on the operation of wells and the implementation of geological and technical measures;
materials on well operating modes;
about all works on hydrocarbons production;
primary documentation for the field;
about the repair works carried out, its content, the period between repairs of equipment and wells, as well as the technical and economic efficiency of the works performed throughout the entire period of operation of the facility;
all materials (acts, orders, protocols, and other materials) on conservation and (or) abandonment of oil, gas, and injection wells for various purposes during exploration and production of hydrocarbons



4

Compliance with the obligation to take over the balance of all previously drilled wells located on the territory of the subsoil plot, conduct monitoring of them



5

Compliance with the requirement to carry out subsoil use operations in accordance with the project document, as well as the prohibition on carrying out such works in the absence of a project document



6

Compliance with the requirements for field development in accordance with the technical design document



7

Compliance with the obligation to ensure reliable accounting of produced hydrocarbons



8

Compliance with the requirements for carrying out work:
for additional exploration in accordance with the field development project;
assessment of a new deposit discovered during additional exploration, in accordance with the addition to the field development project



9

Compliance with the requirement to eliminate the consequences of subsoil use of hydrocarbons and (or) conservation of a subsoil area



10

Compliance with the requirements for liquidation and (or) conservation of technological facilities



11

Compliance with the obligation to supply oil for processing on the territory of the Republic of Kazakhstan, and in the event of a shutdown of the oil refinery due to an emergency - and beyond, in order to meet the needs of the domestic market with petroleum products



12

Compliance with the requirement for the alienation or transfer for processing of a wide fraction of light hydrocarbons produced by it



13

Compliance with the obligation to submit annual (for one financial year) and medium-term (for five financial years) procurement programs for goods, works and services to the authorized body in the field of hydrocarbons no later than February 1 (first) of the year planned for procurement, or no later than 60 (sixty) calendar days from the date of conclusion of the contract, as well as information about the planned acquisition of paid services of the operator in case of its involvement by the subsoil user



14

Compliance with the requirement to submit the following reports to the authorized body in the field of hydrocarbons in the forms and procedures established by the legislation through a unified state subsoil use management system with a certified electronic digital signature of the first head or authorized representative:
1) on the purchased goods, works, and services, as well as the amount of intra-country value in them;
2) on the intra-country value in personnel;
3) on the costs of financing the training of Kazakhstani personnel;
4) on expenses for scientific-research, scientific-technical and development works;
5) on the fulfillment of license and contract conditions;
6) on the composition of persons and (or) organizations directly or indirectly controlling the subsoil user;
7) on daily information on the production and delivery of oil and gas condensate;
8) on monthly information on oil production, gas condensate and development stages by fields (wells);
9) on the actual monthly production and delivery of oil and gas condensate;
10) on monthly information on the oil balance;
11) on monthly information on the company’s oil prices;
12) on monthly information on production, delivery and balances of oil and gas condensate by recipient;
13) on annual information on the plan for production and delivery of oil and gas condensate;
14) on daily information on the production of associated and natural gas;
15) on the actual monthly production of associated and natural gas;
16) on monthly information on the movement of associated and natural gas;
17) on annual information on the production plan for associated and natural gas



15

Compliance with the requirement to carry out the monitoring of implementation by the subsoil user of the field development project through annual supervision by the design organization and analysis of the development of hydrocarbon fields carried out at least once every three years and sending them in a notification procedure to the competent body



16

Availability of state expertise of project documents of the results of the analysis of the development of a hydrocarbon field in case of significant (more than ten percent) discrepancies between the actual and design indicators of the field development



17

Compliance with the prohibition on burning crude gas in flares without the permission of the authorized body, except in cases of threat or occurrence of emergency situations, threats to the life of personnel or public health and the environment



18

Compliance with the obligation to notify the authorized bodies in the field of hydrocarbons and environmental protection in writing within ten days when burning crude gas in flares without permission, indicating the reasons why the burning of crude gas occurred, and information about the volumes of burned crude gas in case of threat or emergency situations, threats to the life of personnel or public health and the environment



19

Compliance with the obligation to conduct an investigation and submit quarterly reports to the authorized body in the field of hydrocarbons no later than the twenty-fifth day of the month following the reporting quarter, indicating information about the time and volumes of gas burned for each case of technological failures, breakdowns and deviations in the operation of process equipment, and also their reasons



20

Availability of a program for the development of crude gas processing approved by the authorized body in the field of hydrocarbons



21

Compliance with the requirement to send annual reports to the authorized body in the field of hydrocarbons on the implementation of programs for the development of crude gas processing



22

Compliance with the requirement for independent testing of each productive formation when testing the formation and testing wells for the period established by the project document, but not more than 90 (ninety) days for each test object with a complex of field geological and hydrodynamic studies



23

Preventing unjustified release of gas from the gas cap and degassing of oil in reservoir conditions, leading to a decrease in the recovery factor of the main product (liquid hydrocarbons)



24

Compliance with the prohibition on the operation of wells:
with bottomhole pressures lower than those provided for in the design documents;
in which there was an uncontrolled gas breakthrough through the formation, or through the annulus;
in the absence of pumping and compressor pipes;
in the absence of downhole and surface equipment that would ensure separate accounting of produced products and carrying out field studies of each object while simultaneously operating two or more objects separately with one well;
fountain or transferred to a mechanized method through the annular (annulus) space;
with a gas factor exceeding the design values specified in the basic project documents and project documents for exploration and production of hydrocarbons;
for forced extraction of liquid in wells at pressures below the permissible downhole pressure, unless otherwise provided by the project document;
without equipment for individual or group flow rate measurement and well exploration;
without manometers of wellhead and annular pressures, devices for taking wellhead samples and measuring the temperature at the mouth, reinforcement pads and lubricators for launching deep instruments into wells (manometers, thermometers, flow meters, samplers);
not prepared for individual performance of a complex of field studies in them



25

Availability in the technological mode of operation of wells of the technological norm for liquid extraction – for each producing well and the volume of the injected displacing agent (injectivity) – for each injection well



26

Availability of technological operating modes for production wells, compiled monthly or once a quarter, depending on the stability of the development conditions of the facility. Simultaneously with the technological operating modes of production wells, a plan of geological and technical measures is drawn up and approved to ensure standards for luquid extraction from wells and the operational facility as a whole.



27

Compliance with the requirements for conducting:
a set of studies for each operational facility (determination of the component composition of the formation fluid, viscosity, density, saturation pressure, gas content, volumetric coefficient, compositions of released gas and degassed oil, as well as the dependence of gas content, volumetric coefficient and density of the formation fluid on pressure) in accordance with the schedule of sampling deep samples of oil/gas condensate from wells, taking into account the commissioning of new wells and their uniform distribution over the deposit area;
mandatory set of field studies when developing oil and oil and gas fields



28

Availability of manometers and flow meters on the flow lines of wellhead fittings during the gas-lift method of operating production wells to measure and regulate the pressure and flow rate of the working gas



29

Compliance with the requirement to change the technological regime of wells or perform appropriate insulation works when breaking through to the bottom of gas or water wells



30

Compliance with the prohibition on hydraulic fracturing of reservoir deposits with thin seals in order to avoid depressurization of hydrocarbon deposits



31

Compliance with the requirements for maintaining records of gas production, reflecting the production of utilized gas, gas losses during well testing and various purges, as well as during emergency blowouts



32

Compliance with the requirements for the formation of a tender commission in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



33

Preventing the establishment of other requirements in the tender documentation that are not provided for by the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



34

Compliance with the requirements for placing an announcement of an open tender and tender documentation in the register (system) in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production hydrocarbons



35

Preventing unreasonable admission and (or) rejection by the customer of competitive bids from potential suppliers in violation of the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



36

Compliance with the requirements for the content and conditions of concluding an agreement on the purchase of goods, works and services



37

Compliance with the obligation to purchase goods, works and services used in conducting operations for the exploration or production of hydrocarbons by means of an open tender, from a single source and an open tender for reduction (electronic bidding) using the register of goods, works and services used in conducting subsoil use operations and their manufacturers or other electronic procurement systems located in the Kazakhstani segment of the Internet, the work of which is synchronized with the work of such a registry



38

Compliance with the requirement for a conditional reduction in the price of the competitive bid of the competition participants - Kazakhstani producers of works and services by twenty percent when determining the winner of the tender for the acquisition of works and services



39

Compliance with the state’s preemptive right to purchase alienated crude gas owned by subsoil users



40

Compliance by subsoil users intending to alienate crude gas with the requirements for sending for examination to the authorized body calculations of the marginal price of crude gas purchased by the national operator under the pre-emptive right of the state, documented, no later than January 1 of the coming year



41

Compliance by subsoil users with the requirements not to exceed the price of crude gas purchased by the national operator within the framework of the preemptive right of the state approved by the authorized body



42

Compliance by subsurface users intending to alienate crude gas, no later than five months before the start of the planned period, with the requirement to send a commercial offer to the national operator, indicating:
1) volumes of alienated crude gas;
2) prices of alienated crude gas;
3) the point of supply of crude gas



43

Compliance with the obligation to approve and submit for examination a project for the conservation of a subsoil plot within two months from the date of termination of the right to subsoil use or suspension of the contract for subsoil use of hydrocarbons, as well as completion of the conservation of a subsoil plot within the time limits established in the conservation project



44

Compliance with the prohibition on conducting activities in the field of production and (or) turnover of oil and gas condensate, operations on production and (or) turnover of crude oil and gas condensate without equipping production facilities with metering devices and ensuring their functioning



45

Compliance with the requirement on the provision by entities operating in the field of crude oil and gas condensate turnover of access to the authorized body in the field of hydrocarbons to their existing accounting systems for data on the amount of crude oil and gas condensate in turnover, prepared for delivery to the consumer



46

Compliance with the requirements for rationing the injection of working agent into wells and formations in wells by conducting it once a quarter and formalizing it in the form of a technological operating mode for each injection well, approved by the management of the subsoil user, indicating:
1) daily volume of working agent injection;
2) basic requirements for the properties of the injected agent;
3) discharge pressure;
4) measures to ensure established injection standards



47

Compliance with the requirement to exclude selective drilling and compaction of the design grid of the most productive part of the deposit, the exploitation object and sections of the deposit with the greatest thickness in order to regulate or increase oil production



48

Compliance with the requirement to submit an application for oil supply for the formation of oil supply schedules on a monthly basis before the fifth day of the month preceding the reporting month



      Official(s)

      __________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

      _________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

      Head of the subject of control

      __________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

  Appendix 4
to the joint order
of the Minister of Energy
of the Republic of Kazakhstan
dated November 23, 2018
№ 453 and acting Minister
of National Economy
of the Republic of Kazakhstan
dated November 23, 2018 № 77

Checklist when conducting subsoil use operations in the field of hydrocarbons at sea and
inland waters in relation to individuals or legal entities who have the right to conduct subsoil
use operations for hydrocarbons exploration

      Footnote. Appendix 4 is in the wording of the joint order of the acting Minister of Energy of the Republic of Kazakhstan dated 29.11.2022 № 382 and acting Minister of National Economy of the Republic of Kazakhstan dated 30.11.2022 № 101 (shall be enforced from 01.01.2023); as amended by the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

      The state body that appointed an inspection/preventive control with

      a visit to the subject (object) of control _________________________________

      _____________________________________________________________________

      An act on the appointment of an inspection/preventive control with a visit to the subject

      (object) of control _____________________________________________________

      (№, date)

      Name of the subject (object) of control ________________________________

      ______________________________________________________________________

      Individual identification number/business identification number of the subject

      (object) of control_____________________________________________________

      Location address ________________________________________________

      _____________________________________________________________________


№

List of requirements

Meets the requirements

Does not meet the requirements

1

2

3

4

1

Compliance with the obligation to immediately suspend subsoil use operations in the event of non-compliance with the provision of liquidation of the consequences of subsoil use or its termination, as well as in its absence



2

Compliance with the obligation to supply hydrocarbons produced during the exploration period in full to the domestic market of the Republic of Kazakhstan, with the exception of hydrocarbons consumed for own technological needs or burned in cases of threat or emergency situations, threats to the lives of personnel or public health and the environment; when testing well objects; during trial exploitation of the deposit



3

Compliance with the requirements for maintaining and storing information (documents) on subsoil use in electronic and paper format, namely:
on the operation of wells and the implementation of geological and technical measures;
materials on operating modes of wells;
about all works on the production of hydrocarbons;
primary documentation for the field;
on the repair works carried out, its content, the period between repairs of equipment and wells, as well as the technical and economic efficiency of the works performed throughout the entire period of operation of the facility;
all materials (acts, orders, protocols, and other materials) on conservation and (or) liquidation of oil, gas, and injection wells for various purposes during exploration and production of hydrocarbons



4

Compliance with the obligation to take over the balance of all previously drilled wells located on the territory of the subsoil plot, conducting monitoring of them



5

Compliance with the requirement to carry out subsoil use operations in accordance with the project document, as well as the prohibition on carrying out such works in the absence of a project document



6

Compliance with the requirements for field development in accordance with the technical project document



7

Compliance with the obligation to ensure reliable accounting of produced hydrocarbons



8

Compliance with the requirements for the liquidation of the consequences of subsoil use of hydrocarbons and (or) the conservation of a subsoil plot



9

Compliance with the requirements for liquidation and (or) conservation of technological facilities



10

Compliance with the obligation to submit to the authorized body in the field of hydrocarbons annual (for one financial year) and medium-term (for five financial years) programs for the procurement of goods, works, and services no later than February 1 (first) of the year planned for procurement, or no later than 60 (sixty ) calendar days from the date of conclusion of the contract, as well as information on the planned acquisition of paid services of the operator in the event of its involvement by the subsoil user



11

Compliance with the requirement to submit the following reports to the authorized body in the field of hydrocarbons in the forms and procedures established by the legislation through a unified state subsoil use management system with a certified electronic digital signature of the first head or authorized representative:
1) on the purchased goods, works, and services, as well as the amount of intra-country value in them;
2) on the intra-country value in personnel;
3) on the costs of financing the training of Kazakhstani personnel;
4) on expenses for scientific-research, scientific-technical and development works;
5) on the fulfillment of license and contract conditions;
6) on the composition of persons and (or) organizations directly or indirectly controlling the subsoil user;
7) on daily information on the production and delivery of oil and gas condensate;
8) on monthly information on oil production, gas condensate and development stages by fields (wells);
9) on the actual monthly production and delivery of oil and gas condensate;
10) on monthly information on the oil balance;
11) on monthly information on the company’s oil prices;
12) on monthly information on production, delivery, and balances of oil and gas condensate by recipients;
13) on annual information on the plan for production and delivery of oil and gas condensate;
14) on daily information on the production of associated and natural gas;
15) on the actual monthly production of associated and natural gas;
16) on monthly information on the movement of associated and natural gas;
17) on annual information on the production plan for associated and natural gas



12

Compliance with the requirement to monitor the execution by the subsoil user of the annual report on the author's supervision of the implementation of the exploration project (with the exception of the exploration project, which does not involve drilling and (or) testing of wells), the implementation of the project document for trial operation and sending them in a notification manner to the competent body



13

Compliance with the prohibition on burning crude gas in flares without permission from the authorized body, except in cases of threat or emergency situations, threat to the life of personnel or public health and the environment



14

Compliance with the obligation to notify the authorized bodies in the field of hydrocarbons and environmental protection in writing within ten days when burning crude gas in flares without permission, indicating the reasons why the burning of crude gas occurred, and information about the volumes of burned crude gas in case of threat or emergency situations, threats to the life of personnel or public health and the environment



15

Availability of a program for the development of crude gas processing approved by the authorized body in the field of hydrocarbons



16

Compliance with the requirement to send annual reports to the authorized body in the field of hydrocarbons on the implementation of programs for the development of crude gas processing



17

Compliance with the requirement for independent testing of each productive formation when testing the formation and testing wells for the period established by the project document, but not more than 90 (ninety) days for each test object with a complex of field geological and hydrodynamic studies



18

Compliance with the prohibition on the operation of wells:
in which there was an uncontrolled gas breakthrough through the formation, or through the annulus;
in the absence of pumping and compressor pipes;
in the absence of downhole and ground-based equipment that provides separate accounting of produced products and carrying out field studies of each object with the simultaneous separate operation of two or more objects by one well;
fountain or transferred to a mechanized method through the intertubular (annular) space;
with a gas factor exceeding the design values specified in the basic project documents and project documents for the exploration and production of hydrocarbons;
for forced extraction of liquid in wells at pressures below the permissible downhole pressure, unless otherwise provided in the project document;
without equipment for individual or group flow measurement and wells testing;
without manometers of wellhead and annular pressures, devices for taking wellhead samples and measuring the temperature at the mouth, reinforcement pads and lubricators for launching deep instruments into wells (manometers, thermometers, flow meters, samplers)



19

The presence in the technological mode of wells operation of the technological rate of liquid extraction – for each producing well and the volume of the injected displacing agent (injectivity) – for each injection well



20

Availability of technological modes of operation of producing wells, compiled monthly or once a quarter, depending on the stability of the development conditions of the facility. Simultaneously with the technological modes of operation of producing wells, a plan of geological and technical measures is drawn up and approved to ensure the norms of liquid extraction from wells and the operational facility as a whole



21

Compliance with the prohibition on hydraulic fracturing of reservoir deposits with thin seals in order to avoid depressurization of hydrocarbon deposits



22

Compliance with the requirements for the formation of a tender commission in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



23

Preventing the establishment of other requirements in the tender documentation that are not provided for by the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



24

Compliance with the requirements for placing an announcement of an open tender and tender documentation in the register (system) in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



25

Preventing unreasonable admission and (or) rejection by the customer of competitive bids from potential suppliers in violation of the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



26

Compliance with the requirements for the content and conditions of concluding an agreement on the purchase of goods, works and services



27

Compliance with the obligation to purchase goods, works and services used in conducting operations for the exploration or production of hydrocarbons using open tender methods, from a single source and open tender for reduction (electronic bidding) using a register of goods, works, and services used in conducting subsoil use operations, and their manufacturers or other electronic procurement systems located in the Kazakhstani segment of the Internet, the operation of which is synchronized with the operation of such a register



28

Compliance with the requirement for a conditional reduction in the price of the tender application of the tender participants - Kazakhstani producers of works and services by twenty percent when determining the winner of the tender for the purchase of works and services



29

Compliance with the obligation to approve and submit for examination a conservation project for a subsoil plot within two months from the date of termination of the right to subsoil use or suspension of a contract for subsoil use for hydrocarbons, as well as completion of conservation of a subsoil plot within the time limits established in the conservation project



30

Compliance with the prohibition on activities in the field of production and (or) turnover of oil and gas condensate, operations on production and (or) turnover of crude oil and gas condensate without equipping production facilities with metering devices and ensuring their functioning



31

Compliance with the requirement on the provision by entities operating in the field of crude oil and gas condensate turnover of access to the authorized body in the field of hydrocarbons to their existing accounting systems for data on the amount of crude oil and gas condensate in turnover, prepared for delivery to the consumer



32

Compliance with the requirement to submit an application for oil supply for the formation of oil supply schedules on a monthly basis before the fifth day of the month preceding the reporting month



33

Исключена совместным приказом Министра энергетики РК от 31.05.2023 № 201 и Министра национальной экономики РК от 01.06.2023 № 95 (вводится в действие по истечении десяти календарных дней после дня его первого официального опубликования).

34

Compliance with the prohibition:
for the construction and operation of oil storage facilities and reservoirs at sea;
for the storage and storage of oil at offshore facilities, with the exception of temporary (no more than twenty calendar days) oil storage when transporting oil by tankers directly from offshore facilities



35

Compliance with the prohibition on operations at facilities that pose a risk of oil spills, with the exception of ships, without:
1) conducting an oil spill risk assessment;
2) approved site plan;
3) availability of own or attracted resources on the basis of a contract



36

Compliance with the obligation of owners of facilities bearing the risk of an oil spill, with the exception of ships:
1) for the liquidation of first–level oil spills at sea - to have available at an offshore facility or within thirty-minute reach the resources necessary for the complete elimination of such oil spills;
2) for the liquidation of second-level oil spills at sea:
to have resources available at an offshore facility either within thirty minutes of reach, in an amount sufficient for the period until the arrival of resources from local coastal services, or to conclude contracts with specialized organizations for the elimination of oil spills at sea



37

Compliance with the obligation of the owner of the facility to conclude an agreement with a specialized organization for the liquidation of oil spills at sea, which has international recognition, qualified personnel and appropriate equipment




      Official(s)

      __________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

      _________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

      Head of the subject of control

      __________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

  Appendix 5
  to the joint order
  of the Minister of Energy
  of the Republic of Kazakhstan
  dated November 23, 2018
  № 453 and acting Minister
  of National Economy
  of the Republic of Kazakhstan
  dated November 23, 2018 № 77

Checklist when conducting subsoil use operations in the field of hydrocarbons at sea and inland
waters in relation to individuals or legal entities who have the right to conduct subsoil use operations
for hydrocarbon production

      Footnote. The joint order is supplemented with Appendix 5 in accordance with the joint order of the acting Minister of Energy of the Republic of Kazakhstan dated 29.11.2022 № 382 and acting Minister of National Economy of the Republic of Kazakhstan dated 30.11.2022 № 101 (shall be enforced from 01.01.2023); as amended by the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

      The state body that appointed an inspection/preventive control with

      a visit to the subject (object) of control _________________________________

      _____________________________________________________________________

      An act on the appointment of an inspection/preventive control with a visit to the subject

      (object) of control _____________________________________________________

      (№, date)

      Name of the subject (object) of control ________________________________

      ______________________________________________________________________

      Individual identification number/business identification number of the subject

      (object) of control_____________________________________________________

      Location address ________________________________________________

      _____________________________________________________________________


№

List of requirements

Meets the requirements

Does not meet the requirements

1

2

3

4

1

Compliance with the obligation to immediately suspend subsoil use operations in the event of non-compliance with the provision for liquidation of the consequences of subsoil use or its termination, as well as in its absence



2

Compliance with the obligation to supply hydrocarbons, including those produced during the exploration period, in full to the domestic market of the Republic of Kazakhstan, with the exception of hydrocarbons consumed for own technological needs or burned in cases of threat or emergency situations, threat to the life of personnel or the health of the population and the environment environment; when testing well objects; with technologically inevitable combustion of crude gas



3

Compliance with the requirements for maintaining and storing information (documents) on subsoil use in electronic and paper format, namely:
on the operation of wells and the implementation of geological and technical measures;
materials on well operating modes;
about all works on hydrocarbon production;
primary documentation for the field;
on the repair works carried out, its content, the period between repairs of equipment and wells, as well as the technical and economic efficiency of the work performed throughout the entire period of the facility operation;
all materials (acts, orders, protocols and other materials) on conservation and (or) liquidation of oil, gas and injection wells for various purposes during exploration and production of hydrocarbons



4

Compliance with the obligation to take over the balance of all previously drilled wells located on the territory of the subsoil plot, conducting monitoring of them



5

Compliance with the requirement to carry out subsoil use operations in accordance with the project document, as well as the prohibition on carrying out such works in the absence of a project document



6

Compliance with the requirements for field development in accordance with the technical project document



7

Compliance with the obligation to ensure reliable accounting of produced hydrocarbons



8

Compliance with the requirements on carrying out works:
for additional exploration in accordance with the field development project;
assessment of a new deposit discovered during additional exploration, in accordance with the addition to the field development project



9

Compliance with the requirements for the liquidation of consequences of subsoil use of hydrocarbons and (or) the conservation of a subsoil plot



10

Compliance with the requirements for liquidation and (or) conservation of technological facilities



11

Compliance with the obligation to supply oil for processing on the territory of the Republic of Kazakhstan, and in the event of a shutdown of the oil refinery due to an emergency - and beyond, in order to meet the needs of the domestic market with petroleum products



12

Compliance with the requirement to alienate or transfer to processing a wide fraction of light hydrocarbons produced by it



13

Compliance with the obligation to submit to the authorized body in the field of hydrocarbons annual (for one financial year) and medium-term (for five financial years) programs for the procurement of goods, works, and services no later than February 1 (first) of the year planned for procurement, or no later than 60 (sixty) calendar days from the date of conclusion of the contract, as well as information on the planned acquisition of paid services of the operator in the event of its involvement by the subsoil user



14

Compliance with the requirement to submit the following reports to the authorized body in the field of hydrocarbons in the forms and procedures established by the legislation through a unified state subsoil use management system with a certified electronic digital signature of the first head or authorized representative:
1) on the purchased goods, works, and services, as well as the amount of intra-country value in them;
2) on the intra-country value in personnel;
3) on the costs of financing the training of Kazakhstani personnel;
4) on expenses for scientific-research, scientific-technical and development works;
5) on the fulfillment of license and contract conditions;
6) on the composition of persons and (or) organizations directly or indirectly controlling the subsoil user;
7) on daily information on the production and delivery of oil and gas condensate;
8) on monthly information on oil production, gas condensate and development stages by fields (wells);
9) on the actual monthly production and delivery of oil and gas condensate;
10) on monthly information on the oil balance;
11) on monthly information on the company’s oil prices;
12) on monthly information on production, delivery and balances of oil and gas condensate by recipients;
13) on annual information on the plan for production and delivery of oil and gas condensate;
14) on daily information on the production of associated and natural gas;
15) on the actual monthly production of associated and natural gas;
16) on monthly information on the movement of associated and natural gas;
17) on annual information on the production plan for associated and natural gas



15

Compliance with the requirement to monitor the implementation by the subsoil user of the field development project through annual supervision by the project organization and analysis of the development of hydrocarbon fields, carried out at least once every three years and sending them in a notification procedure to the competent body



16

Availability of state examination of project documents, results of analysis of hydrocarbon field development in case of significant (more than ten percent) discrepancies between actual and project indicators of field development



17

Compliance with the prohibition on burning crude gas in flares without permission from the authorized body, except in cases of threat or emergency situations, threat to the life of personnel or public health and the environment



18

Compliance with the obligation to notify the authorized bodies in the field of hydrocarbons and environmental protection in writing within ten days when burning crude gas in flares without permission, indicating the reasons why the burning of crude gas occurred, and information about the volumes of burned crude gas in case of threat or emergency situations, threats to the life of personnel or public health and the environment



19

Compliance with the obligation to conduct an investigation and submit quarterly reports to the authorized body in the field of hydrocarbons no later than the twenty-fifth day of the month following the reporting quarter, indicating information about the time and volumes of gas burned for each case of technological failures, breakdowns and deviations in the operation of process equipment, and also their reasons



20

Availability of a program for the development of crude gas processing approved by the authorized body in the field of hydrocarbons



21

Compliance with the requirement to send annual reports to the authorized body in the field of hydrocarbons on the implementation of programs for the development of crude gas processing



22

Is excluded by the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

23

Compliance with the prohibition:
for the construction and operation of oil storage facilities and reservoirs at sea;
for the storage and warehousing of oil at offshore facilities, with the exception of temporary (no more than twenty calendar days) storage of oil during the transportation of such oil by tankers directly from offshore facilities



24

Compliance with the requirement for independent testing of each productive formation when testing the formation and testing wells for the period established by the project document, but not more than 90 (ninety) days for each test object with a complex of field geological and hydrodynamic studies



25

Prevention of unjustified release of gas from the gas cap and degassing of oil in reservoir conditions, leading to a decrease in the recovery coefficient of the main product (liquid hydrocarbons)



26

Compliance with the prohibition on the operation of wells:
with bottomhole pressures lower than those provided for in the project documents;
in which there was an uncontrolled gas breakthrough through the formation, or through the annulus;
in the absence of pumping and compressor pipes;
with a gas factor exceeding the design values specified in the basic project documents and project documents for exploration and production of hydrocarbons;
in the absence of downhole and ground-based equipment that provides separate accounting of produced products and field studies of each object with simultaneous separate operation of two or more objects by one well;
fountain or transferred to a mechanized method through the intertubular (annular) space;
with a gas factor exceeding the project values specified in the basic project documents and project documents for the exploration and production of hydrocarbons;
for forced extraction of liquid in wells at pressures below the permissible downhole pressure, unless otherwise provided in the project document;
without equipment for individual or group flow measurement and well testing;
without manometers of wellhead and annular pressures, devices for taking wellhead samples and measuring the temperature at the mouth, reinforcement pads and lubricators for launching deep instruments into wells (manometers, thermometers, flow meters, samplers);
not prepared for individual performance of a complex of field studies in them



27

The presence in the technological mode of operation of wells of the technological rate of liquid extraction – for each producing well and the volume of the injected displacing agent (injectivity) – for each injection well



28

Availability of technological operation modes of producing wells, compiled monthly or once a quarter, depending on the stability of the development conditions of the facility. Simultaneously with the technological modes of operation of producing wells, a plan of geological and technical measures is drawn up and approved to ensure the norms of liquid extraction from wells and the operational facility as a whole



29

Compliance with the requirements for conducting:
a set of studies for each operational facility (determination of the component composition of the formation fluid, viscosity, density, saturation pressure, gas content, volume coefficient, compositions of released gas and degassed oil, as well as the dependence of gas content, volumetric coefficient and density of the formation fluid on pressure) in accordance with the schedule of deep samples of oil/ gas condensate from wells, taking into account the commissioning of new wells and their uniform distribution over the area of the deposit;
mandatory complex of field studies in the development of oil and gas fields



30

Availability of manometers and flow meters on the flow lines of wellhead fittings during the gas-lift method of operating production wells to measure and regulate the pressure and flow rate of the working gas



31

Compliance with the requirement to change the technological regime of wells or perform appropriate insulation works in case of breakthroughs to the bottomholes of gas or water wells



32

Compliance with the prohibition on hydraulic fracturing of reservoir deposits with thin seals in order to avoid depressurization of hydrocarbon deposits



33

Compliance with the requirements for maintaining records of gas production, reflecting the production of utilized gas, gas losses during wells testing and various purges, as well as during emergency blowouts



34

Compliance with the requirements for the formation of a tender commission in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



35

Preventing the establishment of other requirements in the tender documentation that are not provided for by the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



36

Compliance with the requirements for placing an announcement of an open tender and tender documentation in the register (system) in accordance with the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



37

Prevention of unjustified admission and (or) rejection by the customer of tender bids from potential suppliers in violation of the procedure for the acquisition by subsoil users and their contractors of goods, works and services used in conducting operations for the exploration or production of hydrocarbons



38

Compliance with the requirements for the content and conditions of concluding an agreement on the purchase of goods, works and services



39

Compliance with the obligation to purchase goods, works and services used in conducting operations for the exploration or production of hydrocarbons using open tender methods, from a single source and open tender for reduction (electronic bidding) using a register of goods, works and services used in conducting subsoil use operations, and their manufacturers or other electronic procurement systems located in the Kazakhstani segment of the Internet, the operation of which is synchronized with the operation of such a register



40

Compliance with the requirement for a conditional reduction in the price of the tender application of the tender participants - Kazakhstani producers of works and services by twenty percent when determining the winner of the competition for the acquisition of works and services



41

Compliance with the state’s preemptive right to purchase alienated crude gas owned by subsoil users



42

Compliance by subsoil users intending to alienate crude gas with the requirements to submit for examination to the authorized body calculations of the maximum price of crude gas purchased by the national operator within the framework of the preemptive right of the state, confirmed by documents, no later than January 1 of the coming year



43

Compliance by subsoil users with the requirements not to exceed the price of crude gas purchased by the national operator within the framework of the preemptive right of the state approved by the authorized body



44

Compliance by subsoil users intending to alienate crude gas, no later than five months before the start of the planned period, with the requirement to send a commercial proposal to the national operator indicating:
1) volumes of alienated crude gas;
2) prices of alienated crude gas;
3) crude gas supply point



45

Compliance with the obligation to approve and submit for examination a conservation project for a subsoil plot within two months from the date of termination of the right to subsoil use or suspension of a contract for subsoil use for hydrocarbons, as well as completion of conservation of a subsoil plot within the time limits established in the conservation project



46

Compliance with the prohibition on activities in the field of production and (or) turnover of oil and gas condensate, operations on production and (or) turnover of crude oil and gas condensate without equipping production facilities with metering devices and ensuring their functioning



47

Compliance with the requirement on the provision by entities operating in the field of crude oil and gas condensate turnover of access to the authorized body in the field of hydrocarbons to their existing accounting systems for data on the amount of crude oil and gas condensate in turnover, prepared for delivery to the consumer



48

Compliance with the requirement for rationing the injection of working agent into wells and formations in wells by conducting it once a quarter and formalizing it in the form of a technological operating regime for each injection well, approved by the management of the subsoil user, indicating:
1) daily volume of working agent injection;
2) basic requirements for the properties of the injected agent;
3) discharge pressure;
4) measures to ensure established injection standards



49

Compliance with the requirement to exclude selective drilling and compaction of the design grid of the most productive part of the deposit, the exploitation object and sections of the deposit with the greatest thickness in order to regulate or increase oil production



50

Compliance with the requirement to submit an application for oil supply for the formation of oil supply schedules on a monthly basis before the fifth day of the month preceding the reporting month



51

Compliance with the prohibition on operations at facilities that pose a risk of oil spills, with the exception of ships, without:
1) conducting an oil spill risk assessment;
2) approved site plan;
3) availability of own or attracted resources on the basis of a contract



52

Compliance with the obligation of facilities owners bearing the risk of an oil spill, with the exception of ships:
1) for the liquidation of first–level oil spills at sea - to have available at an offshore facility or within thirty-minute reach the resources necessary for the complete elimination of such oil spills;
2) for the liquidation of second-level oil spills at sea:
to have resources available at an offshore facility either within thirty minutes of reach, in an amount sufficient for the period until the arrival of resources from local coastal services, or to conclude contracts with specialized organizations for the liquidation of oil spills at sea



53

Compliance with the obligation of the facility owner to conclude contract with a specialized organization for the liquidation of oil spills at sea, which has international recognition, qualified personnel and appropriate equipment



      Official(s)

      __________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

      _________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

      Head of the subject of control

      __________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

  Appendix 6
to the joint order
of the Minister of Energy
of the Republic of Kazakhstan
dated November 23, 2018
№ 453 and acting Minister
of National Economy
of the Republic of Kazakhstan
dated November 23, 2018 № 77

Checklist when conducting subsoil use operations in the field of hydrocarbons in relation
to individuals or legal entities whose right to conduct subsoil use operations has been terminated

      Footnote. The joint order is supplemented with Appendix 6 in accordance with the joint order of the acting Minister of Energy of the Republic of Kazakhstan dated 29.11.2022 № 382 and acting Minister of National Economy of the Republic of Kazakhstan dated 30.11.2022 № 101 (shall be enforced from 01.01.2023); as amended by the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

      The state body that appointed an inspection/preventive control with

      a visit to the subject (object) of control _________________________________

      _____________________________________________________________________

      An act on the appointment of an inspection/preventive control with a visit to the subject

      (object) of control _____________________________________________________

      (№, date)

      Name of the subject (object) of control ________________________________

      ______________________________________________________________________

      Individual identification number/business identification number of the subject

      (object) of control_____________________________________________________

      Location address ________________________________________________

      _____________________________________________________________________

№

List of requirements

Meets the requirements

Does not meet the requirements

1

2

3

4

1

Compliance with the obligation to terminate subsoil use operations at a subsoil site, with the exception of operations immediate termination of which is associated with the threat of emergency situations, within two months from the date of receipt of the notification by the competent authority of the decision to eliminate the consequences of subsoil use at the subsoil site or to conserve the subsoil site for subsequent providing it to another person



2

Compliance with the obligation to immediately start works on liquidation of consequences of subsoil use or conservation of a subsoil site after approval and receipt of positive expert opinions of the liquidation or conservation project



3

Compliance with the obligation to transfer equipment and other property that ensures the continuity of the technological process and industrial safety at the subsoil site into the trust management of the national company in the field of hydrocarbons for the period until the transfer of property to a new subsoil user, within a month from the date of receipt of the notification of the competent authority about the decision to transfer the subsoil site in trust management of a national company in the field of hydrocarbons



4

Compliance with the requirement to transfer the right under a bank deposit agreement, which is the subject of a pledge ensuring liquidation of the consequences of subsoil use, to a new subsoil user within the time period specified in the notification



5

Compliance with the obligation to approve and submit for examination a project for liquidation of consequences of subsoil use for hydrocarbons no later than two months from the date of termination of the right to subsoil use, as well as completion of liquidation of consequences of subsoil use on a subsoil plot within the time limits established in the project for liquidation of consequences of subsoil use for hydrocarbons



6

Compliance with the obligation to approve and submit for examination a conservation project for a subsoil plot within two months from the date of termination of the right to subsoil use or suspension of a contract for subsoil use for hydrocarbons, as well as completion of conservation of a subsoil plot within the time limits established in the conservation project



      Official(s)

      __________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

      _________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

      Head of the subject of control

      __________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

  Appendix 7
to the joint order
of the Minister of Energy
of the Republic of Kazakhstan
dated November 23, 2018
№ 453 and acting Minister
of National Economy
of the Republic of Kazakhstan
dated November 23, 2018 № 77

Checklist when conducting subsoil use operations in the field of hydrocarbons in relation
to individuals or legal entities with permission to create and locate offshore facilities

      Footnote. The joint order is supplemented by Appendix 7 in accordance with the joint order of the Minister of Energy of the Republic of Kazakhstan dated 31.05.2023 № 201 and the Minister of National Economy of the Republic of Kazakhstan dated 01.06.2023 № 95 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

      The state body that appointed an inspection/preventive control with

      a visit to the subject (object) of control _________________________________

      _____________________________________________________________________

      An act on the appointment of an inspection/preventive control with a visit to the subject

      (object) of control _____________________________________________________

      (№, date)

      Name of the subject (object) of control ________________________________

      ______________________________________________________________________

      Individual identification number/business identification number of the subject

      (object) of control_____________________________________________________

      Location address ________________________________________________

      _____________________________________________________________________


№

List of requirements

Meets the requirements

Does not meet the requirements

1

2

3

4

1

Availability of permission to locate and create marine facilities



2

Availability of a contract for subsoil use



3

Placement and creation of a marine facility on the permitted geographic coordinates of the territory of marine facilities



4

Creation of a marine facility within the approved time frame



5

Compliance with the conditions for the placement of marine facilities




      Official(s)

      __________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

      _________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

      Head of the subject of control

      __________ ______________ __________________________________________

      position signature surname, name, patronymic (if any)

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