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Measures to counter the shadow turnover of oil and gas were developed on Forum in Aktobe

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Measures to counter the shadow turnover of oil and gas were developed on Forum in Aktobe - 1736703710

October 20, Aktobe. General Prosecutor's Office and the Akimat of Aktobe Region held a forum to discuss the problems of countering the shadow turnover of oil and gas.

Representatives of the Administration of the President of the Republic of Kazakhstan, branch ministries, law enforcement and local executive bodies, associations and profile businesses, including the main mining regions of Kazakhstan (Aktobe, Atyrau, Western Kazakhstan, Kyzylorda Regions) as well as the official delegation of the Orenburg region of the Russian Federation participated in it.

Opening the work of the Forum, Akim of Aktyubinsk Region Berdybek Saparbayev noted that on behalf of the Head of state  the oil and gas sector is paid particular attention in the region.

 “Today 29 subsoil users of hydrocarbon raw materials work successfully in the region. 5.9 million tons of oil and 6.5 billion of gas are planned to extract this year. 6 0 billion tenge will be invested the modernization of the oil and gas industry in next 5 years. In current year 19 geological exploration works will be conducted” – B. Sapabayev reported. The head of the Region considers the shadow turnover of oil and gas to be the current problem not only for Aktobe Region but also for Kazakhstan totally because it is the issue of national security and stability.

«The consequences of the shadow turnover of oil and gas are: significant losses of budget income, the outflow of money from the Republic of Kazakhstan, decline of the people’s welfare, deterioration in the investment climate that totally will threaten the fulfillment of state and government programs. Moreover the shadow turnover is the source of financing of the activities of certain organized criminal groups including the radical religious flows» B. Saparbayev highlighted having announced the proposals to reduce the level of the shadow turnover of oil and gas.

Talking about the scale of the problem the Deputy Prosecutor General Adrei Lukin focused on absence of transparent turnover of oil and gas in the country.

«Since 2015 the variance between the extracted oil (189 million tons), refined and exported oil (191 million tons) is approximately 2 million dollars. That is about 600 million USD. The question is: where does the overage come from? I think the Ministry of Energy should pay its attention to this fact» A. Lukin noted in his speech.

The reasons of for the theft in the supervisory agency are seen in the absence of automated recording of oil production and modern standards for its write-off, improper protection of wells, uncontrolled oil tankers, manipulations with the oil composition and its subsequent removal under the guise of other petroleum products.

According to the Deputy Prosecutor General the main thing is that the information system of control of the Ministry of Energetics which has been offered to integrate with the other agencies database needs modernization.

The Speaker shared the results of the Agency of General Prosecutor’s Office’s experiment conducted within the preparation to the Forum.

According to his words, the Agency the crude oil output and over extraction was compared with the data of oil export given by the customs bodies. 

As a result 40 companies who have shipped more oil than they have extracted have been discovered.

Special attention was paid to the problem of the turnover of the «social» gas.

It was noticed that the deficit and increase of the prices for this raw material in the country are affected by unreliable consumption calculations and the lack of transparent mechanisms for gas distribution both among the wholesalers and the petrol stations.

To modernize the gas sale system there was proposed to empower the Akimat with the authority to distribute the gas reduction in the domestic market to solve this problem.

Further on the measures taken to eliminate the causes and conditions for illegal operations with hydrocarbons were reported by the Vice Minister for Investments and Development Timur Toktabayev and Deputy Minister Magum Mirzagaliev.

The representatives of the Ministry of Internal Affairs of the State Revenue Committee and the Border Guard Service of the National Security Committee laid the foundation for work in the field of counter the shadow turnover of oil and gas.

Based on proposals of all Forum participants it resulted in the final document which includes 7 complex measures (steps) countering the shadow turnover of oil and gas. These are: the improvement of oil and gas accounting system, regulation of process of technological losses determination; introduction of modern technologies for deposits protection, control over oil tankers and gas tankers; improvement of legal measures of responsibility and etc.

At the end of the event the Deputy Prosecutor General expressed his confidence in achieving the positive result from these measures and encouraged the participants to act.

Press service of the General Prosecutor's Office of the Republic of Kazakhstan

Measures to counter the shadow turnover of oil and gas were developed on Forum in Aktobe - 1433889464

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