Regulatory environment review

The following is determined as KMG's basic business profile:

  • participation in the implementation of the uniform public oil and gas policy;
  • ensuring efficient and rational use of national oil and gas resources;
  • participation in the development of the strategy for the use, reproduction and further increase in oil and gas resources;
  • representation, in accordance with the procedure established by law, of the state in contracts with contractors conducting petroleum operations through obligatory participatory interest in contracts; The above-said procedure is regulated by the Rules of Representation by the National Company of the Nation in the Contracts, providing for the national company's participatory interest in them, approved by Resolution No. 122 of 10 February 20177 of the Government of the Republic of Kazakhstan;
  • participation in organizing competitive tenders for oil and gas operations on the territory of the Republic of Kazakhstan;
  • corporate governance and monitoring of exploration, development, production, refining, sales, transportation of hydrocarbons, engineering, construction, operation of oil and gas pipelines and petroleum field infrastructure;
  • participation, in accordance with the procedure established by law, in domestic and international projects of the Republic of Kazakhstan for conduct of petroleum operations;

The central executive body of the Republic of Kazakhstan, which formulates and implements the government policy, coordination of the management process in the area of oil-and-gas, pertrochemical industry, transportation of hydrocarbons, government regulation of the oil products, gas production and gas supply, and trunk pipeline transportation, is the Ministry of Energy of the Republic of Kazakhstan.

Regulation on the Ministry of Energy of the Republic of Kazakhstan was approved by Resolution No. 994 of 19 September 2014 of the Government of the Republic of Kazakhstan.

By Resolution No. 390 of 2 April 2002 of the Government of the Republic of Kazakhstan, KMG was assigned the functions of the working body of the RoK's Ministry of Oil and Gas on regulation in the sphere of construction activity as it pertains to planning, designing, construction of the oil-and-gas transportation infrastructure facilities, related to the trunk oil pipeline transportation, further oil and gas storage and transshipment to other types of transport, and to use of the existing oil-and-gas transportation infrastructure facilities.

KMG is also assigned an important role in the implementation of the Program for Development of Oil and Gas Sector of the Republic of Kazakhstan for 2010-2014, approved by Resolution of the RoK Government No. 1072 of 18 October 2010.

Furthermore, KMG is the action entity of a number of actions envisaged in the Comprehensive Plan for Oil and Gas Sector Development for 2014-2018, approved by Resolution of the Government of the Republic of Kazakhstan No. 567 of 28 May 2014.

Procurement is carried out in accordance with the Rules for Purchase of Goods, Works and Services by Joint Stock Company "Sovereign Wealth Fund "Samruk-Kazyna" and Entities Whose Fifty or More Percent of Voting Shares (Interest) are Directly or Indirectly Owned or Beneficially Owned by the Samruk-Kazyna JSC, approved by the Samuryk-Kazyna JSC's Board of Directors on 26 May 2012 (minutes No.80).