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Measures on tax burden reduction to give impetus to oilfield development: K.Bozumbayev

by October 10, 2016 Legal

“It is necessary to stimulate investments in the sphere of subsoil use to enable OFS works. To this end, the Ministry in a working group with MNE of Kazakhstan is working on the optimization of the tax burden of offshore projects; consider the possibility of “smearing” mechanism of tax borders between contracts for exploration and production within the same legal entity. In addition, work is being done to stimulate the increase in production volumes of existing contracts on existing fields and encourage exploration activities on new deposits,” K. Bozumbayev has said.

The minister said that the measures to reduce the tax burden will give impetus to the development of the oilfield.

K. Bozumbayev also stressed that, despite the downturn in the industry, the Ministry continues to work on the involvement of domestic oilfield service companies in the oil and gas industry’s large-scale projects that will provide employment for Kazakhstan workers, attraction of investments into the country, participation of Kazakhstan service companies at all stages of development of deposits and the creation of a pool of competitive Kazakh oilfield service companies.

Source: The Prime Minister of Kazakhstan