"Rosneft" will no longer have tax benefits for the Vankor field, Rosneft
Release Date: 2011-08-08
"Rosneft" produced 25 million tons of oil at Vankor field, the company said.
Oil from Vankor field is exempted from tax on the extraction of minerals (MET) to achieve a certain level of cumulative production, according to the Tax Code. "Rosneft" made it clear that this level is defined by 25 million tons. Tax break for oil exports from Vankor field was abolished on May 1.
At present, average production is around 43 tons. In 2011 it is planned to extract 15 million tonnes which is up to 2 million tonnes more than in 2010. Increased production is achieved by introduction of new wells and infrastructure. In particular, in March and April four pads were put to work.
In addition, by the end of the year it is expected for 76 km of infield pipelines from 10 well pads to be completed, as well as for the second stage of NPC-1 (oil pumping station on the main pipeline Vankor-Purpe) to be put into operation , to increase the capacity of oil up to 16 million tons per year.
At the peak of production at Vankor will produce 25 million tons of oil per year.
Rosneft earlier appealed to the state authorities with the request to preserve favorable tax treatment for Vankor, in particular, the export duty, due to the need for large investments. The company has even questioned the possibility of the projected level of production to be 25 million tons a year without renewal of such privileges. Experts estimate that the total cost of the company's Vankor project could reach 963 billion rubles. In view of the disbursements of the company will need to invest another 700 billion rubles. At the same time, in September, 2010 "Rosneft" focused on the total investment of 754 billion rubles. It is reported Finmarket.
| Type: | NORMAL |
| Company: | Rosneft |
| Country: | Russian Federation |