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Governmental Decree No. 448 “On implementation of hydrocarbon production mechanism based on contracts with undistributed risks.”

Country/Territory
Uzbekistan
Document type
Regulation
Date
2020
Source
FAO, FAOLEX
Subject
Mineral resources
Keyword
Mining Oil Natural gas Coal Contract/agreement Business/industry/corporations
Geographical area
Aral Sea, Asia, Asia and the Pacific, Central Asia, CIS (Commonwealth of Independent States), Europe and Central Asia, Landlocked Developing Nations, North Asia
Abstract

The Government decrees as follows: (a) mining (extraction) shall be based on contractual arrangement with undistributed risks, as set out herein by decree, applies to public enterprises and legal entities with the State's share of the authorized capital in the amount of 50 and more percent, as well as legal entities, in the authorized capital of which 50 percent or more are owned by a legal entity with a State share of 50 per cent or more; (b) list of hydrocarbon deposits where the increase of hydrocarbons extraction is planned with the involvement of contractors on contract-based hydrocarbon production with undistributed risks, shall be formed on a regular basis by the Ministry of Energy of the Republic of Uzbekistan in accordance with the proposals of subsoil users and coordinated with the Cabinet of Ministers of the Republic of Uzbekistan; (c) contract is an agreement that provides for performance by the contractor, as determined by a competitive bidding process, at its own expense and at its own risk of works (services) to increase production of hydrocarbons with the acquisition of rights to a portion of the increase in volumes of hydrocarbons as a contractor's cost recovery and the reward which is owed to him; (d) the incremented volume of hydrocarbons is calculated as the difference between actual production volume and estimated base production volume; and (e) contracts may be concluded for one or more hydrocarbon deposits for up to 10 years with possible additional extensions up to 5 years by mutual consent of the subsoil user and the contractor.

Full text
Russian
Website
lex.uz

References - Legislation

Implements

Presidential Decree No. PP-4388 “On measures for stable provision of the economy and population with energy resources, financial rehabilitation for improving oil and gas industry management system.

Legislation | Uzbekistan | 2019

Keyword: Natural gas, Business/industry/corporations, Transport/storage, Internal trade, Contract/agreement

Source: FAO, FAOLEX