SIGNUM Currently Advises Several E&P Companies On Local Content Due to the Recent Inspections of the State Bodies Resulted in Imposition of More Than KZT 3 000 000 000 – 4 000 000 000 in Penalties

State has currently strengthened control over the procurement procedures of the subsurface users aiming to increase local content in procured goods and services, encourage local producers and suppliers to take active part in supplying goods and services as well as to control the costs of the operations. Last two-three months state controlling authorities had number of the inspections and audits of the procurement processesof E&P companies on the compliance to the procurement rules, established by the Governmental resolution No.1139.

Our Commercial, Regulatory compliance and Energy and Natural resources lawyers are currently advising several clients on the strategy and required appeal actions with regard to results of state inspections on local content.

Our lawyers take active part in advising to number of the clients on day-to-day basis on implementation of these rules by reviewing their internal procurement standards and policies, assisting in forming the tender commission and setting-up its working process. Also we organize the relevant workshops and trainings on theimplementation of the procurement rules on regular basis.