The Majilis, the Lower Chamber of the Kazakh Parliament, has approved the draft law "On Main Pipeline " and respective amendments to the legislation.

Earlier, Kanatbek Safinov, the executive secretary of the Kazakh Ministry of Oil and Gas said that the bill would provide for the government's participation in any new pipeline project.

The bill explicitly defines the term "a main pipeline" as a unified property complex that includes a linear part of the pipeline, facilities and buildings closely linked to the land, which is to be registered as a single immovable property complex.

Kazakhstan also intends to adopt a law on a pipeline national operator and pipeline operation services.

The bill amends the Tax Code by introducing a provision on rent tax exemption of the oil exporters shipping oil outside the Customs Union for processing for its subsequent

return to Kazakhstan in form of light oil products. These preferences will be in effect until 2015.

According Safinov, this provision will allow for using available processing capacities in the nearby countries to refine Kazakh oil "under strict supervision and on terms of its return to Kazakhstan. It will help solving "the problem of high-octane fuel shortage," he said.

The proposed amendments provide for clear distinction between the notions of

"main pipeline owner" and the "main pipeline operator," as well as separation of their rights and obligations.

Majilis members also proposed removing provisions assigning the linear part of the pipeline to movable property.

According to the Majilis Committee, accompanying amendments introduce provisions for settling Karachaganak-related issues; bringing legislation in line with the indirect taxes agreement of the CU; and rectifying errors made in the taxation of international traffic.

The bill amends the Tax Code, the laws "On Natural Monopolies," "On Transfer Pricing" and "On State Regulation of Petroleum Products Production and Turnover."

Copyright 2012 Interfax News Agency. All Rights Reserved.

(Originally published May 24, 2012, by Kazakhstan General Newswire.)