CodeIn force
Subsoil Code
Code of the Republic of Kazakhstan “On Subsoil and Subsoil Use”
The core law on geological study, exploration and production of minerals, including oil and gas. It sets how subsoil use rights are granted, transferred and terminated, what subsoil users must do during operations and after they end, and which state bodies regulate the sector. Rights to hydrocarbons are granted under contracts, not licences.
What matters for an oil & gas company
- Oil and gas rights are granted under an exploration-and-production or a production contract, mainly via electronic auction or direct negotiations with the national company; exploration lasts up to 6 years (18 for complex projects) and production up to 25 years (45 for large fields).
- In-country value: at least 70% of the works and services bought each year must be Kazakhstani (except complex Caspian offshore projects); purchases go through the register of goods, works and services, and Kazakhstani service providers get a 20% conditional price reduction in tenders.
- From the second production year the subsoil user funds each year: training of Kazakhstani staff and R&D or digital projects (1% of production costs each) and regional development (1% of investments).
- Transfers of subsoil use rights need a state permit; the state has a priority right to acquire rights in strategic plots (geological reserves over 50 million tonnes of oil or 15 billion m³ of gas, or plots in the Kazakh Caspian sector).
- Flaring of raw gas is banned except in listed cases; liquidation of production consequences is secured by a pledged bank deposit, and liquidation works must start within six months after the right ends.
The summaries are for orientation and are not legal advice. Only the official text is legally binding. Checked in September 2026.