The government proposes to cancel the export duty exemptions on oil from new fields

The government proposes to cancel the export duty exemptions on oil from new fields

The government proposes to cancel the export duty exemptions on oil from new fields

The government of the Russian Federation proposes to cancel the export duty exemptions for oil with special physical and technical characteristics produced at 15 fields in Eastern Siberia and the Caspian Sea from January 1, 2021, as well as the exemption for the extra-viscous oil duty. The companies are invited to transfer the deposits to the NDD, which will give the budget 73.5 billion rubles in 2021-2023.

The corresponding amendments to the Customs Tariff are contained in the bill (N1023275-7) submitted to the State Duma.

From January 1, 20201, the government proposes to remove the possibility of establishing a reduced export duty on oil from new fields with special physical and technical characteristics. We are talking about the deposit. Korchagin, the first project of LUKOIL (MCX: LKOH) in the Caspian; East-Alinskoye and Yuzhno-Talakanskoye fields of Surgutneftegaz (MCX: SNGS) West-Ayanskoye, Danilovskoye, Ichedinskoye, Markovskoye fields of the Irkutsk Oil Company (INK); The Kuyumbinskoye field, which is operated by Rosneft (MCX: ROSN); Novoportovsky (Gazprom Neft (MCX: SIBN)); Vostochno-Messoyakhskoye field (JSC Messoyakhaneftegaz, JV Rosneft and Gazprom Neft; Dulisminskoye field, which belongs to NK Dulisma; Krasnoleninskoye field (LLC LUKOIL-West Siberia); West Khosedayuskoye field named after Sadetskoye ( “SK” Rusvietpetro “); Kolvinskoye field (” NNK-Pechoraneft “); Srednebotuobinskoye field, the central block of which is being developed by a subsidiary of Rosneft.

At the same time, the bill cancels the export duty exemption for extra-viscous oil with a viscosity in reservoir conditions of at least 10 thousand millipascal-seconds.

As follows from the explanatory note, these proposals were prepared to optimize the tax benefits provided to the oil industry. “At the same time, in order to preserve the profitability of the development of the relevant oil fields, it is possible for organizations that are users of subsoil in the corresponding subsoil areas to become taxpayers of the additional income tax (APT) from the extraction of hydrocarbons,” the documents say.

Additional federal budget revenues upon the adoption of the bill will amount to: in 2021 – 37.4 billion rubles, in 2022 – 24.6 billion rubles, in 2023 – 11.5 billion rubles, follows from the explanatory note. Thus, the total is 73.5 billion rubles in 2021-2023.

The preferential duty has been applied for super-viscous oil, as well as for oil with special physicochemical characteristics since 2013.

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