Energy, Oil & Gas, and Subsoil Use Disputes

Advised SUBSOIL USERS in an international commercial arbitration related to claims by the Republic of Kazakhstan amounting to billions of US dollars. The dispute involved the qualification of legal relations under a Production Sharing Agreement (PSA) for the development of a major oil and gas field and included complex issues of applying Kazakh law and international practice. Developed a defense strategy based on the qualification of the inherently complex nature of disputed relations, as well as a detailed analysis of the work program and the parties’ obligations.

Advised a PRODUCT SHARING AGREEMENT OPERATOR on the evolution of Kazakhstan’s environmental legislation from the 1990s to the present, addressing emission charges, damage compensation, and administrative fines. The advice was provided in connection with potential arbitration proceedings.

Advised an OPERATOR under a PRODUCT SHARING AGREEMENT in a complex multi-billion-dollar environmental dispute concerning open-air sulfur storage. The matter involved detailed analysis of Kazakh environmental, subsoil, and industrial safety regulations, as well as international environmental standards applicable to large-scale oil and gas projects.

Advised an OPERATOR under a PRODUCTION SHARING AGREEMENT on compliance with environmental, subsoil, and subsoil use legislation in relation to the financial support of liquidation measures.

As part of a transaction to acquire a stake in a subsoil use contract for the extraction of solid minerals, advised a FOREIGN INVESTOR on various issues related to the subsoil user’s landfills, including the availability and sufficiency of financial support for liquidation measures and the verification of approvals and permits for construction and operation.

Advised an OPERATOR under a PRODUCTION SHARING AGREEMENT on various issues related to the revocation of a sour gas flaring permit by an authorized body, including court and other actions to suspend the effective date of the revocation.

Advised Maersk Oil Kazakhstan GmbH on various issues related to liability for historical wells and historical contamination within a contract area.

Provided expert support to a CONSORTIUM of foreign investors exploring an oil and gas field in Kazakhstan in connection with an ongoing dispute over prices under a gas sales contract. The dispute arose due to a significant increase in the tariff for gas transportation through the main gas pipeline introduced by the government of Kazakhstan, which significantly affected the price of gas supplied under the contract.

Provided expert support in arbitration proceedings in London for a US MINING COMPANY on issues related to subsoil use and securities regulation. The dispute centered on the alleged issue of shares without the necessary authorizations from the Kazakh authorities. Our detailed analysis and arguments helped the leading lawyer to conclude a favorable settlement agreement.

Provided pre-arbitration CONSULTATIONS to a EUROPEAN ENERGY COMPANY in relation to an oil and gas exploration contract in the Russian Federation. The analysis focused on whether the terms of the contract were binding under Kazakh law, requiring a potential investment of hundreds of millions of dollars. Our assessment provided a fresh perspective that saved the client more than half a billion US dollars in the long run.