Ministry to introduce tax incentives for watered fields gradually

MOSCOW, Oct 4 (PRIME) -- Russia’s Energy Ministry will most likely introduce tax incentives for watered oil and gas fields gradually, and the Samotlor field mostly developed by oil major Rosneft will be the first one to get them, First Deputy Minister Alexei Teksler told reporters Wednesday.

“It is highly probably that there will be a stage-by-stage approach. The Samotlor (field) will be the first,” he said.

The incentives will be provided under a separate bill not connected with the bill on added income tax currently being discussed by the government, he added.

The Energy Ministry earlier proposed to provide mineral extraction tax (MET) incentives for watered fields with combined output of around 35 million tonnes of oil per year and has submitted a draft bill to the government. The incentives could be provided to four large watered fields operated by Lukoil, Gazprom Neft, Rosneft, and Surgutneftegas.

The Finance Ministry opposed the idea of combining tax incentives for watered oil fields with a planned added income tax, as the budget can lose 100 billion rubles of income.

(57.9375 rubles – U.S. $1)

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