Search terms: Baker & McKenzie CIS
Including: Electricity Sector; Oil and Gas
The Georgian government has enacted new resolutions to address local power generation and energy import matters. In addition, Georgia has taken steps to develop further the legal regime for hydrocarbon transportation across its territory. This update has the details.
The Law on Gas and Gas Supply seeks to provide a framework for the developing gas market in Kazakhstan, particularly for liquefied natural gas, liquefied petroleum gas and associated gas. In so doing, it seeks to secure the country's energy and environmental safety and to prioritise domestic gas supply. However, practical questions remain as to how the law will work in conjunction with existing legislation.
In 2011 several new restrictions for obtaining work permits - affecting the ratios of foreign to local employees - were introduced. The government, apparently in response to a backlash from large international oil and gas companies operating in Kazakhstan, introduced exemptions in connection with certain major oil and gas fields. However, certain aspects of the legislation raise practical questions.
A recent Supreme Court decision has provided guidance to the energy industry by clarifying its interpretation of recent legislative changes that prohibited the resale of power by power-supplying organisations. Its ruling resolves an issue which had divided the two industry regulators in Kazakhstan.
In addition to a signature bonus, commercial discovery bonuses and reimbursement of historical costs, subsoil users are subject to a number of specific taxes. These include the main minerals extraction tax - on varying rate scales for mining companies and oil and gas companies - and excess profits tax.
New legislation demonstrates the government's wish to establish greater control over the subsoil industry and to introduce more mechanisms to monitor the performance of subsoil use contracts. The main innovations affect sector regulation and the approvals process, but other key changes affect national security, procurement and the right to international arbitration.
Major changes to Kazakh legislation effected recently included a reshuffle of the country's oil and gas industry’s key players, the introduction of the new transfer pricing legislation and the adoption of new rules for the use of electricity.
Including: Currency Restrictions; The Mining Sector; Subsoil Use Law; The Oil and Gas Sector; Petroleum Legislation; New Measures to Attract Investment in the Oil and Gas Sector; The Power Sector; The Energy Law
The proposals of bidders in a tender for an international financial consultant to advise on the privatization of national energy holding company Uzbekneftegaz are under evaluation. The privatization plan is part of an aggressive oil and gas investment bid under which foreign companies involved in exploring and extracting oil and gas would enjoy major concessions.