Oil-producing companies will pay 400 million tenge in fines: Kazakhstan Oil and Gas Ministry

Kazakhstan Oil and Gas Ministry will penalize oil-producing companies for 400 million tenge ($2.7 million), Tengrinews.kz reports citing executive secretary of the Ministry Mr. Safinov as saying at the forum of oil and gas companies called Oil and Gas: Kazakhstan Content-2012. "Almost all of subsoil users have undertaken obligations on local content, but unfortunately not all of them are acting on them. This year is the first time that we penalize subsoil users for non-performance of these obligations for the total of 400 million tenge. We have to use the administrative tools towards subsoil users. We will penalize those who undertake obligations on local content and do not observe them. This is the first measure. If they persist, we will terminate the contracts," Safinov said. The list of penalized companies will be published on the website of the Oil and Gas Ministry in the beginning of April. This is the first time such sanctions are taken by the Ministry.