Novak: freeze duties on oil will not be extended until the end of 2016

ESSENTUKI, October 16. To freeze duties on oil will not be extended until the end of 2016. About it told journalists the head of Ministry Alexander Novak.

“Last week at the government meeting discussed the draft budget and draft laws concerning the taxing, and it was decided that the export duty will remain at the level of 2015 till September 2016. Other solutions,” he explained.

As previously reported with reference to sources, “freezing” export duties on oil will be introduced on all 2016, not 8 months, as previously assumed. “We’re talking about the year,” said one of the sources.

Another source said that the decision will generally be different.

As previously reported, the reduction of the duty on oil exports from the Russian Federation, under a tax maneuver will be frozen for 8 months in 2016 with the aim of obtaining additional budget of 200 billion roubles of income from oil companies; “freezing” can be extended, but no more than until the end of the year if this amount is not received by the budget until September, said the Director of the Department of tax and customs tariff policy of the Ministry of Finance Ilya Trunin.

Minister of energy Alexander Novak claimed that before September 1, as a result of freezing of export duties additional budget revenues will amount to only 133 billion rubles, the remaining income will ensure the growth of extraction and oil export.

As previously reported, in 2016 planned reduction of export duties on oil from 42% to 36%. “Freeze” implies a saving rate of 42 percent.

Decision on transfer of “Zarubezhneft” company in the Kharyaga PSA yet

Novak also said that the issue of transfer of “Zarubezhneft” company in the Kharyaga PSA discusses the solution yet.

“In General this question is, we discuss it”, – he said.

As previously reported citing two sources familiar with the negotiations, “Zarubezhneft” is the project operator of the PSA for the Kharyaga oil field (Nenets Autonomous area), acquiring a 20% share of the French Total in the project.

Total remains in the project, the sources said, as well as its partner, the Norwegian Statoil. The deal can be done next week.

As previously reported, the project operator, French Total, there were difficulties in establishing a system of associated gas utilization. Total considered the proposal of the Ministry of energy of the Russian Federation on the inclusion of Russian experts in the management of Kharyaga PSA, to complete the establishment of a system for utilization of associated gas (APG) on the project, said earlier Novak.

“Zarubezhneft” and the Total since the spring of negotiating a possible acquisition of a stake of a French company in the Kharyaga PSA. The suggestion comes from a Russian company. The potential transaction also supports the Ministry of energy. Analysts had earlier estimated a 40% interest in the Total project at $150-300 million.

The energy Ministry has not yet received instructions about the privileges for the Yuzhno-Kirinskoye field

Novak also said that the Ministry has not yet received the instruction of the government on benefits for the Yuzhno-Kirinskoye field. This was reported to journalists by the Minister of energy Alexander Novak.

“While orders,” he said.

Earlier head “Gazprom” Alexey Miller during the meeting of Dmitry Medvedev with the business community reported that Gazprom asked the government on benefits for people who are under U.S. sanctions Yuzhno-Kirinskoye gas and condensate field.

The head of the gas monopoly said that there are exemptions on the shelf, in particular, met. “Yuzhno-Kirinskoye is located at 51 degrees. The difference in the met rate to the South and North of 51 degrees differs dramatically. Please consider providing for Yuzhno-Kirinskoye similar benefits, as for the fields North of 51 degrees,” he asked Miller.