On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on cooperation in the establishment of an economic company based on the Orenburg Gas Processing Plant

Home / RLA / On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on cooperation in the establishment of an economic company based on the Orenburg Gas Processing Plant

On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on cooperation in the establishment of an economic company based on the Orenburg Gas Processing Plant

The Law of the Republic of Kazakhstan dated February 5, 2008 No. 18-IV.

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on cooperation in the establishment of an economic company based on the Orenburg Gas Processing Plant, concluded in the city of Uralsk on October 3, 2006.

President

Republic of Kazakhstan

AGREEMENT between the Government of the Republic of Kazakhstan and The Government of the Russian Federation on cooperation in the establishment of an economic company based on the Orenburg Gas Processing Plant

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - entered into force on August 5, 2008)

The Government of the Republic of Kazakhstan and the Government of the Russian Federation, hereinafter referred to as the Parties,

guided by Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on cooperation in the gas industry dated November 28, 2001,

based on the provisions of the Joint Declaration of the President of the Republic of Kazakhstan and the President of the Russian Federation on the development of long-term cooperation in the field of processing and sale of gas from the Karachaganak field dated July 17, 2006, in order to coordinate the actions of the Parties on its implementation,

Desiring to promote the development of long-term cooperation in the gas industry and the creation of mutually beneficial conditions in the field of processing hydrocarbons from the Karachaganak deposit of the Republic of Kazakhstan and the deposits of the Orenburg region of the Russian Federation,

have agreed on the following:

Article 1

The Parties assist Joint Stock Company National Company KazMunayGas and Open Joint Stock Company Gazprom (hereinafter referred to as authorized organizations) in establishing on a parity basis an economic company based on the Orenburg Gas Processing Plant, which is part of the Unified Gas Supply System of the Russian Federation (hereinafter referred to as the joint venture)..

The organizational and legal form of the joint venture, as well as the procedure for forming and the amount of its authorized capital, are determined in the constituent documents on the terms agreed upon by the competent authorities of the Parties.

In case of replacement of authorized organizations, the Parties shall immediately notify each other through diplomatic channels and take measures to ensure appropriate succession.

Article 2

A joint venture is established subject to the conclusion of long-term (at least 15 years) commercial contracts providing, in accordance with the subject matter and objectives of this Agreement, for the purchase and processing at the facilities of the joint venture of crude gas produced at the Karachaganak field in the amount of at least 15 billion cubic meters per year under the terms of these contracts and the sale of processed gas by the joint venture The Karachaganak field on the market of the Republic of Kazakhstan and its export through the unified export channel of Gazprom Open Joint Stock Company.

The country of origin of the products obtained from the hydrocarbon raw materials of the Karachaganak deposit, transferred for processing to the joint venture, is the Republic of Kazakhstan.

Article 3

The scope of the joint venture's activities includes:

processing of hydrocarbons from the Karachaganak deposit of the Republic of Kazakhstan;

- processing on a contractual basis of hydrocarbon raw materials produced in the Russian Federation by Gazprom Open Joint Stock Company, its subsidiaries and other organizations;

- reconstruction, modernization of existing and creation of new competitive processing facilities for efficient processing of hydrocarbons produced at the Karachaganak field of the Republic of Kazakhstan and fields of the Russian Federation, as well as the production infrastructure of the joint venture with the involvement of necessary investment resources.

From the date of signing this Agreement until the establishment of the joint venture, the processing of hydrocarbons from the Karachaganak field is carried out under a direct agreement concluded between the limited liability company KazRosGaz and the limited liability company Orenburggazprom.

For this period, as well as until the joint venture receives permission to process gas from the Karachaganak field in the customs territory of the Russian Federation, this permission is granted to the Russian subsidiary of the KazRosGaz Limited Liability Company.

Article 4

The joint venture is registered in the city of Orenburg (Russian Federation) and carries out its activities in accordance with the legislation of the Russian Federation.

The head office of the joint venture and its management bodies are located in the city of Orenburg (Russian Federation).

Article 5

In order to optimally load the Joint Venture's facilities with raw materials and increase the efficiency of its activities, the Parties assist Authorized Organizations in concluding long-term contracts with interested organizations for the supply of unstable gas condensate from the Karachaganak field to the joint venture for processing.

Article 6

Authorized organizations determine the procedure and conditions for the supply of gas processed by the Karachaganak field joint venture to the market of the Republic of Kazakhstan on a priority basis, including counter-deliveries on mutually beneficial terms in accordance with the laws of the states of the Parties and on the basis of long-term agreements between Authorized organizations of the Parties and/or economic entities determined by them.

Such counter-deliveries are carried out in equal volumes and at the same price. At the same time, the price of gas for counter-supplies, including under purchase and sale agreements, is not subject to adjustment for tax purposes and customs value determination.

Article 7

The purchase of gas from the Karachaganak field, works and services related to its processing and transportation, as well as the purchase of gas from other sources and its transportation in order to provide priority to the domestic market of the Republic of Kazakhstan, are not subject to public procurement regulated by the legislation of the Republic of Kazakhstan.

Article 8

The competent authorities of the Parties shall coordinate and monitor the implementation of this Agreement.:

from the Kazakh Side - the Ministry of Energy and

mineral resources

Republic of Kazakhstan;

from the Russian Side - the Ministry of Industry and Trade

energy of the Russian Federation.

In the event of a change in their competent authorities, the Parties notify each other through diplomatic channels.

Article 9

The Parties shall provide each other with information on issues related to this Agreement in accordance with the laws of their respective States.

The Parties provide confidential information about the activities of the joint venture to third parties only with the mutual consent of the Parties.

Article 10

Differences in the interpretation and application of this Agreement, which cannot be resolved through consultations between the competent authorities, are resolved through diplomatic channels or through negotiations between the Parties with the preparation of appropriate protocols.

Article 11

This Agreement does not affect the rights and obligations of the Parties arising from other international treaties to which they are parties.

Article 12

This Agreement may be amended and/or supplemented, which are its integral parts and are formalized in separate protocols.

Article 13

This Agreement shall be applied temporarily from the date of signing and shall enter into force from the date of receipt of the last written notification on the completion by the Parties of the internal procedures necessary for its entry into force.

Done in Uralsk on October 3, 2006, in two copies, each in the Kazakh and Russian languages, both texts being equally authentic. In case of disagreement in the interpretation of the provisions of this Agreement, the Parties shall refer to the text in Russian.

For the Government

Republic of Kazakhstan

Of the Russian Federation

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases