Kids in a billion

The oil companies figured out how to return the interest in the auction Rosnedra, which recently exhibited only a small deposit. Chapter LUKoil, Rosneft and Tatneft wrote a letter to the Deputy Prime Minister Igor Sechin (available to RBC daily) with a request to introduce a zero rate of mineral extraction in areas with reserves of less than 10 million tons argue as "petitioners", when the existing tax system to develop small oil fields unprofitable. A reset severance tax would increase the budget revenues from oil dopdobychi 1.4 billion dollars in 2012. The share of deposits with the original recoverable reserves of at least 10 million tonnes accounting for 14% of balance reserves of the country, reminiscent of the letter to Igor Sechin heads of companies Lukoil, Rosneft and Tatneft. The development of small fields can compensate for the decline of production in large areas, to improve the economic situation of small and medium-sized oil companies to maintain and increase employment in the industry. However, development of small fields requires the same investment in exploration and arrangement, as well as large ones. In addition, the requirement to utilize at least 95% of associated petroleum gas (APG) makes it necessary to construct new facilities, which also lead to higher prices of production. The working group on taxation in the petroleum industry, consisting of representatives from major oil companies and the staff of concerned ministries, had the calculations, which confirmed that under the current tax system, the development of smaller fields is inappropriate. Investments have not recovered or recovered with a very long time, more than ten years. "It is clear that the global financial crisis and low oil prices, when the subsoil low on money, without state aid small deposits will not be developed," - noted in his address to Igor Sechin. The development of subsoil reserves of up to 3 million tonnes at zero cost effective severance tax rate for the entire period of development, and for sites with reserves of 3 million to 10 million tonnes needed tax holiday for seven years, the letter said. Thanks to the introduction of new shallow oil fields oil production may grow by 1.5 million tons in 2010 and 6.2 million tons in 2012. Budget revenues while the next three years could increase from 332 million in 2010 to 1.4 billion dollars in 2012. The calculations discussed in the Ministry of Economic Development, Ministry of Energy and the Ministry of Natural Resources and received preliminary approval, the statement says oil companies. They ask the Deputy Prime Minister to consider making changes to the tax code. The ministries declined to comment on their attitude to the initiative of the oilmen. The ministry noted that while not yet developed a clear position on this issue, now it is being coordinated with the Federal Tax Service, as we are talking about performance income from fees, which are already included in the budget. In Lukoil, Rosneft and Tatneft to comment on the letter to Igor Sechin declined. Director General of the Association of Small and medium-sized oil companies ("Assoneft) Elena Korzun knows about the treatment of companies to the Deputy Prime Minister and supports it. "The small deposits development costs even more than at large since the stocks at these hard-to. Without the tax breaks they just will not be developed" - agrees Ms. Korzun. According to her, many small companies are developing small deposits from the time when MET was not. Now, such sites are no one takes, she concludes. Large oil fields are hardly open, it's time to fine, said a senior analyst at FK "Opening" Natalia Milchakova. It is no accident that the issue seriously engaged in the largest oil companies. Most tax breaks for small fields will benefit Tatneft, which works primarily in Tatarstan, it is rich in sites with small reserves. Win and Surgutneftegaz, which owns several small fields, in particular, arranged around a large Talakansky, said Ms. Milchakova. The undoubted benefits will be and Gazprom Neft, which acquired control of Sibir Energy, with its small production assets. Development of small plots than large certainly is not profitable, I'm sure an analyst at Veles Capital, Dmitry Lyutyagin. Moreover, the introduction of zero-MET for the entire period of development would be justified not only on the fields with reserves of up to 3 million tons, but even up to 5 million tons This increases the income of companies at the current price of $ 75 per barrel to 13-14 dollars per barrel ( are those expenses that are spent on severance tax). If the oil supply will be taken, the state in 2010 would wipe up to $ 300 million, and in 2012 - about 600-650 million, estimates the expert. However, the commissioning of new fields have a positive impact both on employment and on oil production. And most importantly - increase the load of related industries and sectors that will already exceed the amount of shortfall of funds by the treasury, concludes Mr. Lyutyagin. In addition, revenue from the export crude oil from new sites may well make as predicting oil, 1.4 billion dollars by 2012, says UniCredit Securities analyst Pavel Sorokin. And small deposits can at least partially compensate for the decline of production at large. Julia Nazarova, Elena Zibrova. RBC Daily