The Minister of Energy issued an order on March 19, 2024, amending standard subsoil use contracts. The amendments cover contracts related to hydrocarbon exploration and extraction, uranium extraction, and complex hydrocarbon projects. The revised section addresses the rights and opportunities of subsoil users.
According to the new provisions, subsoil users are granted the right to utilize subsoil within the allocated area for entrepreneurial purposes, subject to compliance with relevant legislation and contracts. They can also appoint a contract operator, cease operations prematurely by returning the entire exploration or extraction area, and conduct various activities within the exploration and extraction periods.
The standard contract now includes clauses allowing subsoil users to challenge the premature termination of contracts in court and engage in voluntary agreements to support local hydrocarbon producers. Additionally, subsoil users can refuse drilling wells specified in the contract program under certain conditions.
Furthermore, the document emphasizes the state's priority right to acquire subsoil use rights or related objects within strategic subsoil areas. It also outlines procedures for mitigating the consequences of subsoil use, including the liquidation of subsoil areas and the conservation of subsoil sites.
Subsoil users are required to fulfill obligations related to mitigating subsoil use consequences during the exploration stage through guarantees, insurance, or bank deposits. Failure to replace inadequate security within 60 days will result in the suspension of subsoil operations until compliance is restored.
The amendments also address the liability of subsoil users for non-compliance with their obligations. The order will come into effect on April 8, 2024.
