Article 18. Peculiarities of State regulation of the processing of crude oil and (or) gas condensate, and (or) products of processing and supply of petroleum products of the Law on State Regulation of Production and Turnover of Certain Types of Petroleum Products

     1. The plan for refining oil and refined products for producers of petroleum products, with the exception of producers of low-capacity petroleum products, for the upcoming calendar year is approved by the authorized body in the field of production of petroleum products annually no later than December 15 in order to maximize the capacity utilization of producers of petroleum products and meet the needs of the domestic market of the Republic of Kazakhstan in petroleum products.

     2. The oil and (or) refined products refining plan determines the volume of crude oil and (or) gas condensate and (or) refined products that the producer of petroleum products is required to process monthly to produce the appropriate types of petroleum products during the calendar year, taking into account the projected consumption of petroleum products in the domestic market of the Republic of Kazakhstan.

     3. The plan for processing oil and (or) refined products is formed taking into account the provision of petroleum products to agricultural producers during spring field and harvesting operations, as well as heat supply organizations for the heating period.

     4. Oil suppliers annually, no later than November 30, send to the authorized body in the field of production of petroleum products applications for the supply of crude oil and (or) gas condensate, and (or) refined products, indicating the planned volumes, delivery dates of crude oil and (or) gas condensate, and (or) refined products and the direction of supply oil products produced by regions, cities of national importance, and the capital for the upcoming calendar year.

     5. Oil suppliers have the right to purchase and (or) supply crude oil and (or) gas condensate and (or) refined products to producers of petroleum products (with the exception of producers of low-capacity petroleum products) if there are documents confirming their origin.

     The documents confirming the origin include:

     1) a document confirming the quality (quality passport) of crude oil and (or) gas condensate, and (or) refined products;

     2) a contract for the purchase and sale and (or) transfer of crude oil and (or) gas condensate, and (or) refined products, indicating the name of the deposit and the name of the producer of petroleum products to whom the crude oil and (or) gas condensate is provided for processing (in the case of sale to the producer of petroleum products);

     3) transportation documents issued in accordance with the legislation of the Republic of Kazakhstan on road transport, railway transport, inland waterway transport, main pipeline and tax legislation of the Republic of Kazakhstan.

     The documents specified in the second part of this paragraph are provided on paper and (or) in the form of an electronic document.

      6. Taking into account the requests specified in paragraph 4 of this article, the authorized body in the field of oil products production approves for oil suppliers a schedule for the supply of crude oil and (or) gas condensate, and (or) refined products, which specifies the volumes and timing of supplies of crude oil and (or) gas condensate, and (or) products refining to producers of petroleum products, as well as oil refineries located outside the Republic of Kazakhstan, in order to ensure a plan for refining oil and (or) refined products. The schedule of supplies of crude oil and (or) gas condensate, and (or) refined products for the upcoming calendar year is approved by the authorized body in the field of production of petroleum products annually until December 15 and is brought to the attention of oil suppliers and producers of petroleum products within ten calendar days from the date of its approval. Oil suppliers are required to supply crude oil and (or) gas condensate, and (or) refined products in accordance with the approved schedule for the supply of crude oil and (or) gas condensate.

     7. The authorized body in the field of production of petroleum products monthly, no later than the 25th day of the month preceding the planned one, approves the plan for the supply of petroleum products for the upcoming calendar month and publishes it on its Internet resource.

     The plan for the supply of petroleum products indicates:

     1) the list of oil suppliers and producers of petroleum products, with the exception of producers of low-capacity petroleum products;

     2) the volumes of each type of petroleum products that each oil supplier and producer of petroleum products, with the exception of producers of low-capacity petroleum products, are required to supply to the domestic market of the Republic of Kazakhstan in the upcoming calendar month:

     as part of direct deliveries;

     through commodity exchanges in accordance with the legislation of the Republic of Kazakhstan on commodity exchanges;

     3) the volumes of each type of petroleum products that each oil supplier and producer of petroleum products, with the exception of producers of low-capacity petroleum products, has the right, under the conditions established by this Law, to sell at its discretion on the territory of the Republic of Kazakhstan or beyond its borders in the upcoming calendar month.

     8. Oil suppliers and producers of petroleum products, with the exception of producers of low-capacity petroleum products, are obliged to supply petroleum products produced from crude oil and (or) gas condensate owned by them on the right of ownership or other legal grounds, in accordance with the plan for the supply of petroleum products.

     Persons who have purchased petroleum products within the framework of the plan for the supply of petroleum products for the purposes of their further sale are obliged to sell the purchased petroleum products exclusively on the domestic market of the Republic of Kazakhstan in accordance with the requirements of this Law.

     8-1. A single operator for the supply of petroleum products is obliged to supply petroleum products in accordance with the rules for the supply of petroleum products by a single operator for the supply of petroleum products, including the pricing procedure.

     9. A condition for concluding an agreement on the processing of crude oil and (or) gas condensate, and (or) refined products by a producer of petroleum products with oil suppliers is the provision of a notarized copy of the agreement specified in subparagraph 3) of paragraph 5 of this Article.

     10. Oil suppliers submit to the authorized body in the field of production of petroleum products a report on the fulfillment of the schedule for the supply of crude oil and (or) gas condensate, and (or) refined products and the plan for the supply of petroleum products produced in the Republic of Kazakhstan.

     10-1. The provisions provided for in paragraphs 7 and 8 of this article do not apply to the supply of fuel oil.

     11. Producers of petroleum products are required to submit to the authorized body in the field of production of petroleum products information on the form of administrative accounting necessary for monitoring the production and sale of petroleum products.

     12. The oil supplier has the right to reimburse the producer for the amount of expenses incurred by the manufacturer in fulfilling the tax obligation to pay excise tax calculated in accordance with the tax legislation of the Republic of Kazakhstan on processed products from toll-free raw materials, if such reimbursement is provided for by the terms of the agreement between the supplier and the manufacturer.

     13. It was valid from 01.01.2018 to 31.12.2020 in accordance with the Law of the Republic of Kazakhstan dated 02.01.2021 No. 399-VI.  

     14. The oil supplier sells to the producer of petroleum products the process fuel obtained as a result of processing the raw materials belonging to such an oil supplier.

     At the same time, the oil supplier reimburses the producer of petroleum products for the costs associated with the purchase of process fuel used for technological needs in the processing of toll-free raw materials, in accordance with the procedure and on the terms established by the agreement between the oil supplier and the producer of petroleum products.

The Law of the Republic of Kazakhstan dated July 20, 2011 No. 463-IV.

     This Law regulates public relations arising in the process of production and turnover of certain types of petroleum products: gasoline, aviation and diesel fuel, fuel oil, road bitumen.

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