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Gazprom has to prepare the economic model of the South-Kirinsky gas condensate field for new MET benefits - EastRussia | Far East

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Gazprom is to prepare an economic model of the South Kirinsky gas condensate field for new mineral extraction tax exemption

Taking into account the fact that the water area in which the South Kirinskoye field is located is unattractive from the point of view of investment and requires additional economic incentives, the issue of granting additional tax privileges to the South Kirinskoye deposit is currently under consideration

Gazprom is to prepare an economic model of the South Kirinsky gas condensate field for new mineral extraction tax exemption
The water area of ​​the Okhotsk Sea, in which the Yuzhno-Kirinskoye field is located, is not attractive for investment, however, to work out additional tax incentives for it, Gazprom needs to provide the economic model of the project to the ministries, consider the Ministry of Environment and the Ministry of Energy.

As stated in the letter of State Secretary, Deputy Minister of Natural Resources and Ecology Svetlana Radchenko, the Ministry of Natural Resources, fulfilling the instructions of the government from 9 in October 2015, worked on the issue of granting additional benefits for the South Kirinsky project and concluded that “the deposits located in the southern parts of the Sea of ​​Okhotsk need tax incentives, ”Interfax reports.

According to the current tax legislation, the reduced rate of mineral extraction tax in 15% extends to the southern part of the Sea of ​​Okhotsk, then to the northern part - the preferential rate in 10%. S.Radchenko notes that the Ministry of Environment carried out an analysis of taxation regimes for fields on the shelf of different Arctic seas of the Russian Federation and the profitability of projects depending on the geographical location. The Office concluded that the economic efficiency of projects in the southern part of the Sea of ​​Okhotsk and in the Pechora Sea is comparable to the efficiency of the development of fields in the northern part of the Sea of ​​Okhotsk. At the same time, the profitability of deposits in the southern part of the Sea of ​​Okhotsk and in the Pechora Sea is significantly inferior to the profitability of, for example, projects in the deep-water part of the Black Sea, which are also subject to a preferential rate of 15% MET.

“Thus, the water area in which the Yuzhno-Kirinskoye field is located is unattractive from the point of view of investment and requires additional economic incentives,” the letter says. “However, it should be noted that the Ministry of Natural Resources does not have an economic model characterizing the economics of developing this field. The ministry is ready to consider this issue in more detail when relevant materials are received, ”the State Secretary notes.

The representative of the Ministry of Energy informed that the issue of granting additional tax privileges to the South Kirinsky deposit is under consideration. The ministry expects additional materials from Gazprom with the economic model of the project.

It was reported that in early October, the head of Gazprom, Alexey Miller, asked the Russian Prime Minister Dmitry Medvedev to grant the severance tax on severance tax to the South Kirinsky GKM, which had fallen under the US sectoral sanctions.

"Within the framework of the Eastern Gas Program, there is another major project - the Yuzhno-Kirinskoye field. Addressed sanctions were imposed on him by the United States. But there are privileges for the shelf, in particular for MET. South-Kirinskoye is located at 51 degree. The difference in the rate of mineral extraction tax to the south and north of 51 degrees differs by dozens of times. Please consider the possibility of providing benefits for South Kirinsky similar benefits as for the fields north of 51 degrees, "the head of Gazprom said.

The Yuzhno-Kirinskoye field is currently the largest field on the Sakhalin shelf, the neighboring Kirinskoye field has a production shelf of 5 billion cubic meters. meters of gas per year and, accordingly, can not be the basis of export supplies. Other promising structures on Sakhalin are still being explored by Gazprom.