Multiplying by 3
The Ministry of environment and energy Ministry has prepared proposals on stimulation of geological exploration on the continental shelf. On 28 April, the Minister of natural resources Sergey Donskoy sent their Deputy Prime Minister Alexander Khloponin (a copy of the letter y). Deputy Prime Minister instructed the Ministry of environment to prepare these proposals in autumn 2015, after the letter of Director General of “Gazprom oil” Alexander Dyukov, who complained that the projects on the shelf and capital intensive with low investment attractiveness, and to drill in the Arctic, where Gazprom Neft”, is difficult because of the short ice season.
The Ministry said the government should allow companies to write off a factor of 3.5 exploration expenditures from the consolidated income tax group of companies. As follows from the letter of don, this benefit will only apply to those who have the right to develop the shelf. That’s about it and asked for the Dukes in a letter to Khloponin, but the coefficient is not indicated. In October last year, Sergei Donskoi told President Vladimir Putin that because of declining public and private investment in exploration 50% decrease in the volume of exploration works on the shelf.
The official representative the Ministry of natural resources Nikolay Gudkov confirmed that the letter and the position of the Ministry. He explained that for companies with important government support to encourage investment in exploration. In Norway, where also there is a production on the shelf, this support is provided, said Gudkov. The Ministry said that measures of support will relate to deductions for exploration of new offshore fields. The representative of the Ministry of energy confirms that the Agency supports the Ministry of natural resources.
Concerns Of The Ministry Of Finance
Don Khloponin, the letter asks the government to instruct the Finance Ministry to begin drafting the bill with a factor of 3.5, and with the ability to write off expenses from consolidated profit.
However, as it turned out , the Ministry of Finance did not support the proposal of the Ministry of natural resources and energy because of the risks of decline in budget revenues. At the end of April, Deputy Minister of Finance Ilya Trunin wrote a letter to Khloponin (also have) that the Ministry agrees only to a factor of 1.5 and does not support the idea of writing off expenses for the payment of tax on the consolidated profits of the company. According to the Deputy Minister, it would impede administration of the tax. Close to the Finance Ministry source explained that the Agency supports the deduction of expenses only for exploratory drilling without taking into account the seismic survey.
The representative Khloponin announced that the Deputy Prime Minister received the positions of all the departments until the end of may will hold a meeting.
According to the Ministry of natural resources, the Russian subsoil users issued 122 licenses on the continental shelf, with reserves of 1.7 billion tonnes of oil and 13 trillion cubic meters of gas. More than 100 licenses belong to “Gazprom” and “Rosneft”. By 2025, according to a source in “Rosnedra”, companies must drill bore 142.
Saving companies at a rate of 3.5 will be from 40 to 80 billion rubles per year depending on the volume of work, if deductions will apply to all exploration and consolidated net income is evaluated by the Dean of geological faculty of the University. Gubkin Sergey Lobusev. According to him, companies costs drilling, seismic exploration represents 10% of the costs. If the ratio is 1.5, the savings would amount to only 10%.
If the deduction would only apply to the profits of the relevant subsidiaries, the savings can be zero, Lobusev said. The example of offshore “daughters” “Gazprom oil” shows that such companies operate at a loss. According to “SPARK-Interfax”, in 2014, when oil prices exceeded $100 per barrel, the net loss of shelf, OOO Gazprom Neft shelf” amounted to 3.3 billion rubles, the data for the year 2015 yet. According to a source in “Gazprom oil”, in the current year the company has planned only seismic survey, offshore drilling is too expensive.
Representatives of “Rosneft”, “Gazprom” and “Gazprom oil” on the request is not answered.
According to the energy Ministry, in 2015 Russia produced 534 million tonnes, in 2014 — 527 million tonnes Without extraction offshore and tight oil resources it is impossible to keep the current oil output, said in the draft General scheme of oil industry development of Russia up to 2035. So production remained at the level of 2014, are required by 2035 to get on the shelf 54 million tons, against 14 million tons in 2014.