ON MEASURES FOR ORGANIZATION AND RECOVERY OF OIL AND GASGEOLOGICAL-INVESTMENT

President of the Republic of Uzbekistan

the decision

In accordance with the Decree of the President of the Republic of Uzbekistan dated July 9, 2019 "On measures for sustainable provision of population and economy with energy resources, financial rehabilitation of the oil and gas industry and improvement of its management", as well as hydrocarbon resources. - in order to further increase the efficiency and effectiveness of search operations:

1. Transfer of the following functions to the State Committee of Geology and Mineral Resources of the Republic of Uzbekistan (hereinafter referred to as the State Geological Committee): Ministry of Energy, Ministry of Economy and Industry, Ministry of Finance, State Committee on Geology and Mineral Resources, Agency for State Assets Management and JSC “Uzbekneftegaz” To accept the following proposals:

Carrying out of research, regional geological and geophysical, geophysical and drilling works to identify and prepare promising oil and gas structures for the discovery of new hydrocarbon deposits;

organization of work on increase of efficiency and efficiency of geological prospecting works directed on accelerated development and restoration of hydrocarbon reserves of the republic, opening of new hydrocarbon deposits.

Uzbekneftegaz until the end of 2019 to provide the State Committee on Geology with information on current projects for research and geophysical works, as well as all available prospective fields, investment blocks and hydrocarbon deposits and other materials.

2. To establish:

Annual state programs for development and restoration of oil and gas mineral resources by 2020 are developed and approved by the State Geological Committee in coordination with the Ministry of Energy, Ministry of Economy and Industry and the Ministry of Finance;

implementation of international standards for geological prospecting activities with the involvement of leading foreign consulting companies and specialists in the framework of annual state programs for the development and rehabilitation of oil and gas mineral resources;

Oil and gas exploration, regional geological imaging, geophysical and drilling operations, as well as measures for equipping with modern equipment, high-tech technologies, software products, special and motor vehicles, are included in the annual state programs for the development and reconstruction of oil and gas mineral resources. is financed at the expense of the State budget of the Republic of Uzbekistan and other sources not prohibited by the legislation on the basis of reasonable estimates of the State Geological Committee;

wells drilled at the expense of the State Budget of the Republic of Uzbekistan within the framework of the annual state programs for the development and restoration of oil and gas mineral resources are not the object of taxation until the State Geological Committee and its organizations transfer them from the depths to specific users.

3. To the State Assets Management Agency of the Ministry of Energy, Ministry of Finance and State Geological Committee of the Republic of Uzbekistan in the authorized capital of JSC "Uzbekgeofizika" and JSC "Institute of Geology and Exploration of Oil and Gas Fields" (hereinafter - Agency). ) agree to the proposal.

The Cabinet of Ministers of the Republic of Uzbekistan jointly with the Ministry of Finance, the Agency and the State Geological Committee until July 1, 2020 to study the geological prospecting services and the level of competition in the industry. ).
The State Geological Committee together with the Agency and the Ministry of Finance of the Republic of Uzbekistan in a week’s time shall develop, approve, and ensure the implementation of the action plan for the reorganization of each state enterprise with specific deadlines and responsible executives.

To note that JSC "Uzbekgeophysics", JSC "Institute of Geology and Exploration of Oil and Gas Fields" and the restructured state enterprises carry out their activities within the organizational structure of the State Geological Committee.

4. To establish that:

Transfer of shares of the joint-stock company "Uzbekneftegaz" and JSC "Uzbekgeofizika" and JSC "Institute of geology and exploration of oil and gas fields" to the Agency by reducing the state share in the authorized capital of JSC "Uzbekneftegaz";

property, property rights, including stocks and shares in authorized capital, transferred and received from one organization to another under this Decree are not subject to taxation for all types of taxes;

The transfer of shares of JSC "Uzbekgeofizika" and JSC "Institute of Geology and Exploration of Oil and Gas Fields" is not a newly acquired shareholding of the Agency;

The rights and obligations of the JSC "Uzbekneftegaz" and its affiliates on the existing contracts with JSC "Uzbekgeofizika" and JSC "Institute of Geology and Exploration of Oil and Gas Fields" are preserved.

5. Developed by the State Geological Committee, Ministry of Energy, Ministry of Economy and Industry and the Ministry of Finance:

Basic parameters of geological study of subsoil for hydrocarbon resources in 2020-2021, carried out by the State Geological Committee in accordance with Annex 2;

The list of modern geophysical, laboratory and other devices, software products, special and motor vehicles purchased for modernization and strengthening of material and technical base of JSC "Uzbekgeofizika" and JSC "Institute of Geology and Exploration of Oil and Gas Fields" according to Attachment 3;

To approve the "Road Map" for the further improvement of the system of geological exploration works through the step-by-step reforming and commercialization of mineral and raw materials, including oil and gas.

6. The Ministry of Finance of the Republic of Uzbekistan in the parameters of the State Budget of the Republic of Uzbekistan, taking into account the functions assigned by this Decree in accordance with the State programs on development and restoration of mineral resources (including oil and gas), approved annually by the State Geology Committee. in this case.

7. Development of mineral resource base of the Republic of Uzbekistan, approved by the Decree of the President of the Republic of Uzbekistan dated May 4, 2017 N PP-2954 "On measures for control and accounting of rational use of groundwater resources in 2017-2021" The task force to coordinate the implementation of the strategy (hereinafter referred to as the Working Group) should be responsible for coordinating the work on timely and qualitative implementation of the tasks and activities arising from this decision.

8. To retain the right to conduct geological prospecting works for the hydrocarbon resources without a license under the current projects with the termination of drilling of previously started parametric and exploration wells.

9. The State Geology Committee together with the Ministry of Energy, Ministry of Economy and Industry, Ministry of Finance, Ministry of Investments and Foreign Trade and Uzbekneftegaz within three months:

Target targets for hydrocarbon reserves development for 2020-2025;

to submit to the Cabinet of Ministers a list of promising structures for drilling of wells and hydrocarbon deposits in the oil and gas exploration sector, with a corresponding license for subsoil use to Uzbekneftegaz as a result of direct negotiations.

10. To:

Carrying out research, thematic, geophysical and laboratory work with JSC "Uzbekgeophysics" and JSC "Institute of Geology and Exploration of Oil and Gas" on earlier projects in the framework of the State program for development and reconstruction of oil and gas mineral resources to JSC "Uzbekneftegaz" to conclude direct contracts on the subject;

Uzbekneftegaz, State Geological Committee and their subsidiaries, including joint-stock companies, which will be reorganized into joint-stock companies by the end of 2021, as well as development and reconstruction of mineral resources of the Republic of Uzbekistan. to identify contractors who conduct public procurement through tendering within the framework of annual government programs.

11. To approve the list of investment blocks, provided by foreign investors, in the framework of previous agreements with JSC "Uzbekneftegaz" for studying the materials for making a decision on expediency of further cooperation with the State Geological Committee on geological study of subsoil.

To establish:

At the expiration of agreements with foreign investors, investment blocks and prospective plots are transferred to the State Geological Committee;

Boundaries and areas of investment blocks will be revised within a year to optimize the process of attracting investors as soon as they are transferred to the State Geological Committee.

12. To introduce since January 1, 2020 the following mechanism:

Licenses for subsoil use with strategic mineral resources specified in the Decree of the President of the Republic of Uzbekistan dated May 24, 2017 No PP-3000 "On measures to accelerate attraction of foreign investments for geological exploration and development of strategically important solid minerals" issuance is based on auctions that provide transparency;

Initial evaluation of the right to use subsoil blocks with strategic types of minerals shall be established by the legislation in the order established by the legislation for the geological survey - at the rate of sign bonus, and on the rate of commercial discovery bonus. At the same time, the initial evaluation of the right to use subsoil blocks with strategic minerals should not be less than the expenses of the State Geological Survey and prospecting works;

Proceeds from the sale of the right to use subsoil blocks of strategic minerals are transferred to the State Budget of the Republic of Uzbekistan in the established order after deduction of expenses for auction auctions;

The report of the State Geological Committee on the use of funds allocated from the State Budget of the Republic of Uzbekistan and the results is submitted annually to the Oliy Majlis of the Republic of Uzbekistan;

and the technical support of international organizations and financial institutions, including auditors and independent consultants, in the form of transparent procedures, the preparation of tender documents, and the conclusion of investment agreements for strategic extraction of minerals through the evaluation of investment geological assets.

To the State Geological Committee to provide the necessary funds for the services for estimation of the initial value of the right to use subsoil within the annual budget appropriated to the State Geological Committee for financing works under the approved state programs for the development and restoration of mineral resources (including oil and gas).

13. To establish that the State Geological Committee:

He is the working body of the working group and the owner of information on research and geophysical work, as well as the existing projects on all prospective plots, investment blocks and hydrocarbon deposits;

In addition to the projects carried out by Uzbekneftegaz, it is the executive body responsible for the implementation and coordination of investment projects in the field of geological study of promising oil and gas structures with the participation of potential foreign investors;

Determines the tasks of increasing hydrocarbon reserves for the subsoil users conducting oil and gas exploration, taking into account the balanced development and rehabilitation of the national mineral resource base.

14. Determine that drafts of normative legal acts in the field of geological study, use and protection of subsoil, as well as management of mining relations are subject to coordination with the State Geological Committee.

15. In the structure of the central office of the State Geological Committee:

the Department of Oil and Gas Geology, with a limited staff of 9;

the Oil and Gas Organization Department, with a limited staff of 7;

to set up a Procurement Organization with a limited number of employees of 4.

Provide the State Geological Committee with an additional 14 staff units to supplement the offices established under this paragraph.

To fill the post of the Deputy Chairman of the State Geological Committee on Coordination of Oil and Gas Geological Prospecting.

16. Approve the updated structure of the central office of the State Geological Committee in accordance with Annex 6.

17. The Decree of the President of the Republic of Uzbekistan dated March 1, 2018 N PP-3578 "On measures to radically improve the activities of the State Committee for Geology and Mineral Resources of the Republic of Uzbekistan":

The third Paragraph of Point 10 is also regarded as annulling Annex 5;

In paragraph 11, the number "339" and "92" shall be replaced by "391" and "107" respectively.

18. State Geology Committee together with the Ministry of Energy of the Republic of Uzbekistan and other interested ministries and departments within two months to submit proposals to the Cabinet of Ministers of the Republic of Uzbekistan on amendments and additions to the legislation arising from this decision.

19. Control over the implementation of this resolution to assign to the Deputy Prime Minister of the Republic of Uzbekistan Dzhak Kochkarov and the Minister of Energy of the Republic of Uzbekistan ASSultanov.

President of the Republic of Uzbekistan Sh.MIRZIYOYEV

Tashkent,

November 18, 2019