Upper house approves Priobskoye MET exemption for Gazprom Neft

MOSCOW, Nov 19 (PRIME) -- The Federation Council, the parliament’s upper chamber, on Friday approved in the third and final reading a bill that provides an exemption on the mineral extraction tax (MET) to oil company Gazprom Neft for the oil produced in the southern part of the Priobskoye field.

Deputy Finance Minister Alexei Sazanov said earlier that the exemption will amount to 833 million rubles per month and will be provided only if the actual price of oil stays above the baseline price. The exemption will be provided over the next 12 years until the total accumulated exemption reaches 99.96 billion rubles.

The government will also provide the exemption only if Gazprom Neft is efficient for the budget, meaning that additional oil production, payments of MET, and of export duties are higher then the excise. The company will have to reimburse the exemption otherwise, Sazanov said.

The recoverable reserves of the Priobskoye oilfield stood at 1.2 billion tonnes as of January 1, 2019. Rosneft that develops the northern part of the field, has already agreed with the government on the MET exemption for the oil produced on its part of the field.

(72.6022 rubles – U.S. $1)

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