Legal Support for Subsoil Users: From Obtaining a License to Defending Your Contract

Legal Support for Subsoil Users: From Obtaining a License to Defending Your Contract

We support subsoil users across the entire life cycle of subsoil use rights: obtaining and amending contracts and licenses, transfer of rights, pledges, and disputes with the competent authority. Kazakhstan's largest subsoil users and industrial companies are our long-standing clients.

Members of our team have worked in oil & gas and mining & metals companies and know production processes from the inside. That is why we speak the language of operations with our clients — and the language of the Subsoil Code with the competent authority.

Situations Where We Step In:

You have received a notice of breach of contract / license obligations or of termination of the contract / license
A transfer of subsoil use rights or related assets is planned — approval of the competent authority is required
The bank requires registration of a pledge over the subsoil use right to finance the project
You need to obtain a subsoil use contract / license or make amendments and additions
Disagreements arise with the competent authority on performance of the work program and other obligations
You need to assess subsoil use risks before an M&A deal or investor entry

Our Approach:

We conduct an in-depth analysis of contract and license performance and challenge claims of the competent authority;
We build a defense position with production specifics in mind: our specialists have worked inside oil and gas and mining and metallurgical companies and understand how the facts on obligations are formed;
We support transfers of subsoil use rights on a turnkey basis — from structuring to obtaining competent authority approval and registration;
We engage with the competent authority at the pre-trial stage: in many cases the dispute can be resolved before court;
We advise on any subsoil use matters and identify early the risks that may cost the contract.

Why Us

We Know Subsoil Use from Both Sides — Business and Regulator

Our specialists have experience in major industrial holdings in the oil and gas and mining and metallurgical sectors, in the judiciary, and in government bodies. This allows us to assess the situation comprehensively — from the perspective of the subsoil user, the competent authority, and the court.

Among our results is a successful challenge of claims against a major oil producing company for historical cost reimbursement of $6 million.

We assess the prospects of the dispute upfront and openly tell the client if the legal position does not allow reaching the ultimate goal.

Our Cases.
How we helped our clients

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16

When court decisions to invalidate transactions do not result in additional assessments

Brief description of the case:

When a desk audit notification arrives referencing already-issued civil court decisions

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16

VAT with penalties: when businesses can also claim compensation

Brief description of the case:

Our team represented the interests of a major investor in a case reviewed by the Supreme Court of the Republic of Kazakhstan on the matter of

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16

Successful court practice on VAT refunds: September 2024 results

#Legal practice

#Tax practice

Brief description of the case:

In September 2024, we participated in 6 cases in first instance and appellate courts, and in all cases

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16

Cancellation of additional assessments under Notification - 1.5 billion tenge

#Customs practice

Brief description of the case:

Comprehensive support for a client (the world's largest oil service company) during a customs audit by the territorial State Revenue Department

01

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16

Additional assessment amount of 5.5 billion tenge excluded

Brief description of the case:

Successfully challenged environmental inspection results regarding waste classification generated at...

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16

Challenged damages for above-standard violations

#Legal practice

Brief description of the case:

Challenged environmental inspection results regarding dust from CHP waste, challenged damages for above-standard violations amounting to 1.2 billion tenge.

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16

Peaceful settlement of dispute within court proceedings

#Tax practice

Brief description of the case:

Peaceful settlement of dispute within court proceedings with tax authority regarding notification recognition

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16

Consulting on transfer pricing matters

#Tax practice

Brief description of the case:

Consulting on transfer pricing matters for transactions totaling $200 million USD.

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16

Theft scheme prevented

#Legal practice

Brief description of the case:

Full legal support for conducting internal investigation into theft incidents at

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16

Court challenge of tax authority's claim

#Legal practice

Brief description of the case:

Court challenge of tax authority's claim to invalidate transactions of a major trading company for procurement and sale of scrap...

01

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16

Proved unlawfulness of tax authority demands amounting to $6 million

#Tax practice

Brief description of the case:

Successfully appealed tax authority demands against a major oil production company regarding historical compensation fees

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16

Court decisions regarding property worth over 2.5 billion tenge overturned

#Legal practice

Brief description of the case:

Appeal to the Supreme Court of Kazakhstan for a foreign investor against court decisions invalidating a purchase and sale transaction

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16

Customs authority claims of 156 million tenge withdrawn

#Customs practice

Brief description of the case:

Comprehensive audit support (consulting company personnel on audit-related matters, communications with

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16

Notification for 50 million tenge cancelled

#Customs practice

Brief description of the case:

Prepared appeal against notification based on customs audit results and supported it at Customs Committee and State Revenue Department. As a result, cancelled

01

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16

Additional assessments of 1.6 billion tenge cancelled

#Customs practice

Brief description of the case:

Company support at the Appeal Commission of the Ministry of Finance of Kazakhstan regarding appeal of customs authority actions on additional assessments

01

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16

Customs value reassessment of 600 million KZT cancelled

#customs practice

Brief description of the case:

Successful challenge of a customs reassessment of over 600 million KZT for a major retail company over the inclusion of franchise royalty payments in customs value

When It Is Important to Reach Out

A subsoil use right is an asset that can be lost due to formal breaches. The earlier lawyers get involved, the more options there are.

upon the first notice from the competent authority of a breach of obligations
before signing a deal affecting the subsoil use right or related assets
at the stage of planning changes to the contract / license — before filing documents
upon the first disagreements on performance of the work program
upon receiving a notice of termination of the contract / license — here every day counts

Get an Initial Analysis of Your Situation

At a meeting or call, our specialist will:

1

assess risks to your subsoil use right and the prospects of a dispute with the competent authority

2

determine whether there are violations in the actions and demands of the competent authority

3

outline a preliminary strategy: negotiations, appeal, or court protection

The Key to Success

The key to success is experts who know the industry from the inside: lawyers with experience in oil and gas and mining and metallurgical companies, the judiciary, and government bodies. We understand both the production process and the logic of the competent authority — and we build the strategy in advance.

Ruslan Sadrtdinov

Ruslan Sadrtdinov

Director of Legal Services Department

Ruslan Sadrtdinov

Director of Legal Services Department

Over 11 years of experience. Legal support at ERG and consulting.

Expertise: resolution of commercial, tax, customs and environmental disputes, corporate and labor law, subsoil use. Participation in legislative working groups.

Auelbek Zinullin

Auelbek Zinullin

Legal Services Department Manager

Auelbek Zinullin

Legal Services Department Manager

Experience at Big4, in American Bar Association international projects. Specialization: corporate and contract law, corporate structuring, litigation. Lane Kirkland Program Scholar (University of Wrocław, Poland).

Yelena Pustovit

Yelena Pustovit

Legal Practice Manager

Yelena Pustovit

Legal Practice Manager

12 years of experience in the prosecutor's office, including 6 years at the General Prosecutor's Office.

Specialization: supervision of criminal cases from investigation through trial, including the highest court instance.

Diyaz Sulaimanov

Diyaz Sulaimanov

Legal Practice Advisor

Diyaz Sulaimanov

Legal Practice Advisor

10 years of experience, including 5 years of attorney practice. Corporate client support, criminal cases, defense of suspects and victims. International certificates from the European Center for Legal Cooperation, attorney license.

Гүлзат Арықбаева

Гүлзат Арықбаева

Старший консультант юридической практики

Гүлзат Арықбаева

Старший консультант юридической практики

Более 11 лет профессионального опыта в сфере юридического сопровождения бизнеса, включая работу в международных компаниях и консалтинге

Nazmina Sarymullaeva

Nazmina Sarymullaeva

Senior Legal Practice Consultant

Nazmina Sarymullaeva

Senior Legal Practice Consultant

Supports national holdings and foreign investors in litigation and project implementation in energy and industry sectors. Specializes in civil and administrative law, participated in developing investment legislation with the Ministry of Foreign Affairs of Kazakhstan.

Emil Salimov

Senior Legal Practice Consultant

Senior Legal Practice Consultant

Experience at ALC Attorneys LLP, IUSTUS Chamber of Consultants, Aktau Law Office. Expertise: corporate, labor, contract law, tax disputes.

Consultation

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