The Law of the Republic of Kazakhstan No.2-III of the 1st of December 2004 «On alterations and amendments to some legislative acts of the Republic of Kazakhstan on the matters of use of subsoil and carrying out of oil operations in the Republic of Kazakhstan» entered into force on the 8th of December 2004.

The main alterations and amendments are the following:

1. The priority right of acquisition of shares in projects subsoil projects has been secured for the state.
2. The following concepts have been given definitions: «Kazakhstan producer», «Kazakhstan origin» and «Kazakhstan content».
3. Alterations have been made to the procedure for carrying out a tender for acquirement of a right to use subsoil.
4. The powers of the national company on the use of subsoil and carrying out of oil operations have been strengthened considerably.
5. The classification of contract types has been changed. 6. Flaring of accompanying gas has been prohibited.

We would like to consider in more detail the changes made to the legislation on use of subsoil and carrying out of oil operations..