What did the oilmen offer
1. The geology of new areas (with a depletion of no more than 1%), as a rule, is little studied, which entails high uncertainty in the values of most of the parameters affecting the economics of the project and, as a result, on a possible decision on the feasibility of transferring to AIT. Therefore, it was proposed not to restrict the rights of companies to transfer new sites to the AIT regime by the criterion for the timing of the start of production. In addition, unprofitable drilling options may be encountered in the new areas, which could be realized if converted to AIT. Therefore, the Ministry of Finance was offered to grant subsoil users the right to voluntarily transfer sites without fixing specific coordinates in the Tax Code. This would allow companies to make decisions on relocation of new sites, taking into account the macroeconomic situation and the incoming new geological data, which would maximize the efficiency of developing new projects.
2. The term “developed” was proposed to mean areas with a depletion of more than 20% (which corresponds to general industry practice), and not 50% (according to the Ministry of Finance). Because, due to the high volatility of world oil prices and a significant increase in the cost of industrial construction, companies are forced to operate in an environment of high uncertainty, which has a significant impact on the assessment of the feasibility of transferring such sites to AIT. For new areas, the companies were also offered to grant them the right to voluntarily transfer deposits to a new tax regime, without fixing the list of specific areas in NK.
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