Russian Ministry Supports Zero Tax for Difficult Oil Fields

December 10, 2013

Russia’s Finance Ministry has supported the Energy Ministry's idea to expand the zero mineral extraction tax (MET) rate to include hard-to-recover oil fields with up to 10% of resource extracted, Deputy Finance Minister Sergei Shatalov told reporters on December 9, Prime has reported.

“I think that we have the right question here for certain fields, which have been developed by some companies over the years, we will back (the idea to increase the treshold to) 10% level… It concerns (domestic oil majors) Surgutneftegas, Lukoil,” Shatalov said.

At present, a zero MET rate is applied to the fields with less than 5% of total resource extracted. The Energy Ministry suggests raising the threshold to 10%.

Copyright: Prime, 2013