Medvedev will hold a meeting on the development of the oil industry

© RIA Novosti / Ekaterina to Stuckinarut in photobacteria Medvedev. Archival photoMedvedev will hold a meeting on the development of the oil industry© RIA Novosti / Ekaterina to Stuckinarut the image Bank

Prime Minister Dmitry Medvedev on Tuesday in Khanty-Mansi Autonomous Okrug — Ugra will hold a meeting on the development of the oil industry in Russia, the press service of the government.

Medvedev also will visit kondinskoe oil field of «Rosneft» to participate in the ceremony of putting into operation starting complex Elginskogo cluster of fields in Western Siberia and visiting the technological facilities of the Central collection point for oil.

«Rosneft» 2017 implementing the project «Kondaneft» under which is developing kondinskogo, West Elginskogo, Chiprovskogo and new Angarskogo license areas. The project is located 100 kilometers from one of the key assets of the company — Priobskoye field and is adjacent to Elginskom oil field.

The events will also be attended by the Deputy Prime Minister Arkady Dvorkovich, Plenipotentiary representative of the RF President in the Urals Federal district Igor Kholmanskikh, the Minister of energy Alexander Novak, Minister of natural resources and ecology Sergey Donskoy, Minister of Finance Anton Siluanov, the head of «Rosneft» Igor Sechin, as well as representatives of specialized companies.

During the visit Dmitry Medvedev will also hold a meeting with the Governor of the Khanty-Mansiysk Autonomous Okrug — Ugra Natalia Komarova.

Agreement to reduce oil production

Last week Russian energy Minister Novak held a meeting with heads of Russian oil companies to discuss the future of OPEC transaction+. For the first time in this meeting took part the Minister of economic development of Russia Maxim Oreshkin. On Monday, Novak said he plans on Tuesday to continue the discussion of the Treaty of Vienna with the heads of oil companies.

OPEC and several non-organisation countries (OPEC+) to stabilize the oil market agreed in late 2016 in Vienna on the reduction of its oil production to total 1.8 million barrels per day from October levels, of which 300 thousand are in Russia. The agreement was concluded for the first half of 2017, and in may extended for another nine months — until the end of March 2018.

Meeting of Ministers of petroleum and energy States of all 24 agreement to reduce production of «black gold» will be held in Vienna on 30 November. In anticipation of this meeting, November 29, there will be a meeting of the Ministerial Committee for monitoring the execution of the transaction OPEC+ and the adjustment of its terms. The Committee is comprised of representatives from only six countries of the agreement — Saudi Arabia, Venezuela, Kuwait, Algeria, Oman and Russia.

PDM and met

On Monday, first Deputy energy Minister Alexei Teksler reported that a pilot project for the introduction of value added tax income (JPM) will not come into force in Russia January 1, 2019.

PDM, which will not be charged with the amounts of oil and cash flow, planned for launch in 2018. But at the end of October, the Chairman of the Duma Committee on energy Pavel Zavalny told reporters that the lower house of the Parliament may not be able to pass a bill PDM in all the readings this year.

It is expected that the new tax will apply to the initial pilot development projects, and on the idea of the Ministry of Finance should, in fact, to replace the export duty. The Agency proposed this mechanism as opposed to a tax on financial result (NFR), which offered energy for depleted fields with low-profit prey instead of the current severance tax.

Also Russian oil companies and the Ministry to discuss the introduction of incentives for met to flooded fields.

In early October the Ministry of Finance of the Russian Federation and Rosneft have agreed to provide tax incentives Samotlor field, resulting in a decrease in mineral extraction tax will amount to 35 billion rubles per year for a period of 10 years. This mechanism will be introduced from 1 January 2018. Rosneft, in turn, pledged to take on enhanced investment obligations in terms of the long-term increase of production volumes, creation of new jobs, the growth of the revenue base of the state, regional infrastructure development.

In late October, Minister of energy of the Russian Federation reported RIA Novosti that the Ministry supports the introduction of incentives in flooded fields, in addition to providing investment incentive for Samotlor field.

As reported in the media, the head of «LUKOIL», «Surgutneftegaz» and «Gazprom oil» has addressed to Prime Minister Dmitry Medvedev on providing tax breaks for fields with high water cut. While the Ministry of Finance does not want to set a criterion for granting tax incentives water cut oil fields, the deduction of mineral extraction tax for Samotlor is associated primarily not with water, but with extra burden on Rosneft in connection with the increase of dividends to 50% of the profits.