30-03-2017

On March 30 of the current year, a meeting of the Oil and Gas Committee of the Public Council on the matters of the fuel and energy sector and ecology was held. The main subject of this meeting was the issue of a transfer to the competitive environment and to self-regulating organizations of the functions related to analysis and assessment of the risks of harming human health and life and the environment while carrying out oil operations and oil transportation.

Currently the Ministry of Energy works on transfer of the 2nd group of functions. Competence of the oil and gas authorized body in the area of carrying out analysis and assessment of the risks of harming human health and life and the environment while carrying out oil operations and oil transportation is provided for by sub-paragraph 19) article 18 of the Law of the RoK ‘Concerning subsoil and subsoil use’.

In the Ministry of Energy of the RoK this function is assigned to the Oil and Gas Sector State Inspection Department (hereinafter referred to as the OGS SID). Operations of the OGS SID regarding this function are limited to summarization of the information received from the Industrial Development and Industrial Safety Committee (the Ministry of Investments and Development), the Environmental Regulation and Control Committee (the Ministry of Energy) and the Labor, Social Protection and Migration Committee (the Ministry of Labor and Social Protection).

Due to the fact that the normative legal instruments in force have no methodology for performing analysis and assessment of the risks of harming human health and life and the environment, as well as the fact that the issues of harming the environment and population are governed by the laws ‘Concerning Civil Protection’, Environmental Code, Labor Code.

Therefore, in view of the fact that the same functions are duplicated by different ministries, it was suggested that the OGS SID transfers these functions to the National Chamber of Entrepreneurs Atameken (hereinafter referred to as the NCE). The Association, in its turn, expressed its position by indicating the fact that the NCE has no controls over subsoil users and it may negatively affect performance of these functions. The Association, agree with the position of the Ministry, suggests to transfer these functions not only to the NCE but also to industry associations, such as theAssociation of Oil Service Companies of Kazakhstan.

Accordingly, a performer of functions will collect and analyze the information regarding the performed, being performed and planned for the year following the reporting period, procurements of goods, works and services provided by subsoil users and (or) the persons authorized by subsoil users to perform procurement of goods, works and services for subsoil use operations related to hydrocarbon raw materials, coal and uranium. Collection and analysis of the information regarding mid-term and long-term plans of procurement of goods, works and services provided by subsoil users and (or) the persons authorized by subsoil users to perform procurement of goods, works and services for subsoil use operations related to hydrocarbon raw materials, coal and uranium

Unfortunately, due to the fact that there were no representatives of the KAZENERGY association, as well as the issues that arose regarding the functions suggested to be transferred, no final decision was taken during this meeting. The matter was sent for further development and review by the KAZENERGY association. The Association will continue to follow up this matter due to its absolute importance for all oil service companies of the country.



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