On December 8, 2004 the RoK Law No.2-III dated December 1, 2004 «On making changes and amendments to the RoK legislative acts on subsoil use and oil operations in the Republic of Kazakhstan» came into force.

The main changes and amendments are follows:

1. A priority right to acquire shares in subsoil use projects was assigned to the state.
2. “Local Manufacturer”, “Local Origin” and “Local Content” terms were defined.
3. Changes were made to the bidding for obtaining a subsoil use right.
4. A national subsoil use and oil operations company’s powers were materially extended.
5. Contract types classification was changed. 6. It was prohibited to flare an associated gas.

Below, we would like to consider in detail the changes made to the subsoil use legislation, as to the matters relating to the gas utilization and flaring during the oil operations...