Minister against oil MET rise to compensate for Priobskoye exemption

VLADIVOSTOK, Sep 4 (PRIME) -- The Energy Ministry is against raising mineral extraction tax for the entire oil industry as compensation of tax exemptions for Rosneft’s Priobskoye oilfield, Minister Alexander Novak told reporters on Wednesday on the sidelines of the Eastern Economic Forum.

“It’s the compensations at the expense of the others in the oil and gas industry in general (are unnecessary),” he said.

Tax exemptions for a field allows it to raise production and investment, and results in additional budget revenue, he said.

“These projects were studied individually. Their feasibility studies and technical and economic figures are efficient, these exemptions allow them to raise production, raise investment, and ensure not only reimbursement of these exemptions, but also provide additional contributions to the budget,” he said.

Previously, Rosneft asked the government for tax exemptions for Priobskoye amounting to 46 billion rubles per year similar to a 35 billion ruble annual tax exemption for the Samotlor oilfield it has. Kommersant business daily reported in August that the Finance Ministry may raise MET for oil and introduce MET for associated gas for the entire sector to compensate budget shortfalls from the exemptions.

(66.9072 rubles – U.S. $1)

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