To ensure a consolidated approach to the common task of the field appraisal and reserve calculation of hydrocarbons, it is required to develop a single exploration (in the Republic of Kazakhstan) and geological study (in the Russian Federation) project.
ALGORITHM OF SYNCHRONIZATION
Previous mapping legislative conditions and requirements for exploration forms the basis of synchronization algorithm. Finally, the necessity in developing a single project is justified by having the simultaneous approvals and expertise of this document in Kazakhstan and Russia. However, in contrast to the Russia’s legislation, the Kazakhstani law stipulates that the exploration (appraisal) project expertise and approvals shall be limited to five months. Therefore this part of procurement of subsoil use rights procedure is considered as the most risky area for the project.
Given the limited timing, the single project shall be adjusted simultaneously according to the expertise rules and norms of the two States, otherwise, the project shall be returned for a new expertise of any of the parties, resulting in delaying the general implementation terms under the Agreement.
Marking this procedure as having the highest risk is due to distribution of other procedures along the synchronization stages: during the bidding period in the Republic of Kazakhstan, a single project will be developed, a license shall be obtained in the Russian Federation in line with the negotiations, to be held with the competent body of the Republic of Kazakhstan.
Only in this case, the operator under the agreement shall proceed with the expertise and approvals of the single project, simultaneously in both countries. While respecting all the legal requirements of the parties, the implementation of the international project is ensured.