Corporate Responsibility

Kazakhstan Content

Law of the Republic of Kazakhstan
On subsurface and subsurface use, Article 1  

• Local content in conducted work (provided service) is – an aggregated total portion of the cost of the local content in used goods when performing the work, in the price of an agreement and (or) in payment for the service provided by employees who are citizens of the Republic of Kazakhstan, and who are listed in the labour compensation fund of the providers of work (services) under the contract for work execution or service providing, after the deduction of cost of goods used in the performance of work and prices of subcontracts (paragraph 34);

• Kazakhstani producer of work, services are – the citizens of the Republic of Kazakhstan and (or) legal entities iestablished in accordance with the legislation of the Republic of Kazakhstan, located within the territory of the Republic of Kazakhstan and which has a staff represented with not less than ninety-five percent of citizens of the Republic of Kazakhstan. (paragraph 36);

• Kazakhstan content in personnel is – the number of Kazakhstani personnel in percentage out of total number of personal engaged in the performance of a contract, with a breakdown by each category of workers and employees (paragraph 37);

• Goods of Kazakhstan origin are – goods which have certificates of origin issued for internal circulation and confirming its origin in the territory of the Republic of Kazakhstan (paragraph 58);

• Kazakhstan producer of goods – means the citizens of the Republic of Kazakhstan and (or) legal entities of the Republic of Kazakhstan are producing goods of Kazakhstan origin.
  

On amendments and additions to the order of the Minister of Energy of the Republic of Kazakhstan No. 196 dated May 18, 2018 “On approval of the Rules for the acquisition by subsoil users and their contractors of goods, works and services used in carrying out operations for the exploration or production of hydrocarbons and uranium mining”

• In case when customer initiates a procurement contract with the Kazakh producer of goods, it is allowed to require a certified copy of the certificate of origin of goods for the domestic use, as well as confirmation of the origin to be the territory of the Republic of Kazakhstan in the provisions of the contract, which is in accordance with  the relevant nomenclature of the ongoing purchase, with the condition that the volume of the goods specified in the certificate, cannot be less than the amount of goods delivered under the contract (paragraph 158);

•  In case when customer signs a procurement contract with the Kazakh producer of works or services, the contract provisions should specify the requirement for a statement of the supplier delivered GWS in the form and within the period specified by the customer.