Management of oil and gas field development using tax incentives

UDK: 338.45:622.276
DOI: 10.24887/0028-2448-2020-8-6-10
Key words: encouraging unprofitable fields development, tax incentives, mineral extraction tax, economic efficiency
Authors: E.S. Boldyrev (RN-BashNIPIneft LLC, RF, Ufa), D.A. Nikulochkina (RN-BashNIPIneft LLC, RF, Ufa), L.K. Hafizova (RN-BashNIPIneft LLC, RF, Ufa), R.R. Gareev (RN-BashNIPIneft LLC, RF, Ufa)
On the background of structural problems in the oil and gas industry, unstable exchange rates and fluctuations in world oil prices, the issue of evaluating the profitability of field development and offering incentives to increase the level of profitable oil reserves is acute. The results of the inventory of hydrocarbon reserves showed that the state balance sheet data on the number of economically recoverable reserves is significantly higher than the amount of oil that can be extracted from the subsurface under current macroeconomic conditions and existing technologies. The task is to maintain the current levels of oil production and reproduction of crude oil reserves in order to ensure the stability of tax revenues to the budgets of the Russian Federation. The problem of reproduction of oil and gas reserves actualizes the issue of analyzing the impact of various factors, including financial and tax mechanisms, on reproduction processes. The subject of the study is the current system of tax benefits and tax deductions of companies for the tax on the extraction of minerals in the oil sector. The article presents the results of technical and economic assessment of oil and gas fields of the Republic of Bashkortostan (on the example of project documents), which showed the unprofitability of further development in the current tax conditions, structural analysis of the elements of costs of the subsurface user. This assessment showed that the existing system of tax incentives does not sufficiently stimulate the exploitation of Mature and low-efficiency deposits, taking away the incentives for the subsoil user to continue it. The authors proposed an algorithm for stimulating low-efficiency deposits with the use of tax incentives, which allows avoiding their conservation, encouraging the subsoil user to further develop the fields, which would provide the state budget with additional tax revenues.
References
1. Inventarizatsiya zapasov: neobkhodimost' sistemnykh izmeneniy (Inventory inventory: the need for systemic changes), URL: https://vygon.consulting/products/issue-1701
2. Tax code of the Russian Federation (part two) of 05.08.2000 No. 117-FZ.
3. Nizamov A.N., Boldyrev E.S., Analiz metodov ucheta riskov v neftegazovykh proektakh (Analysis of risk accounting methods in oil and gas projects), Proceedings of International Scientific and Technical Conference “Neft' i gaz Zapadnoy Sibiri” (Oil and gas of Western Siberia), 2017, pp. 137–139.
4. Boldyrev E.S., Metody ekonomicheskoy otsenki proektnykh resheniy (Methods for the economic evaluation of design solutions), Proceedings of International scientific and practical conference “Novye tekhnologii – neftegazovomu regionu” (New technologies for the oil and gas region), 2016, pp. 242–244.
5. Boldyrev E.S., Zakharova I.M., Tasmukhanova A.E., Economic criteria for choosing the recommended option for oil field development at different stages of the life cycle (In Russ.), Evraziyskiy yuridicheskiy zhurnal, 2019, no. 12 (139), pp. 382–385.
On the background of structural problems in the oil and gas industry, unstable exchange rates and fluctuations in world oil prices, the issue of evaluating the profitability of field development and offering incentives to increase the level of profitable oil reserves is acute. The results of the inventory of hydrocarbon reserves showed that the state balance sheet data on the number of economically recoverable reserves is significantly higher than the amount of oil that can be extracted from the subsurface under current macroeconomic conditions and existing technologies. The task is to maintain the current levels of oil production and reproduction of crude oil reserves in order to ensure the stability of tax revenues to the budgets of the Russian Federation. The problem of reproduction of oil and gas reserves actualizes the issue of analyzing the impact of various factors, including financial and tax mechanisms, on reproduction processes. The subject of the study is the current system of tax benefits and tax deductions of companies for the tax on the extraction of minerals in the oil sector. The article presents the results of technical and economic assessment of oil and gas fields of the Republic of Bashkortostan (on the example of project documents), which showed the unprofitability of further development in the current tax conditions, structural analysis of the elements of costs of the subsurface user. This assessment showed that the existing system of tax incentives does not sufficiently stimulate the exploitation of Mature and low-efficiency deposits, taking away the incentives for the subsoil user to continue it. The authors proposed an algorithm for stimulating low-efficiency deposits with the use of tax incentives, which allows avoiding their conservation, encouraging the subsoil user to further develop the fields, which would provide the state budget with additional tax revenues.
References
1. Inventarizatsiya zapasov: neobkhodimost' sistemnykh izmeneniy (Inventory inventory: the need for systemic changes), URL: https://vygon.consulting/products/issue-1701
2. Tax code of the Russian Federation (part two) of 05.08.2000 No. 117-FZ.
3. Nizamov A.N., Boldyrev E.S., Analiz metodov ucheta riskov v neftegazovykh proektakh (Analysis of risk accounting methods in oil and gas projects), Proceedings of International Scientific and Technical Conference “Neft' i gaz Zapadnoy Sibiri” (Oil and gas of Western Siberia), 2017, pp. 137–139.
4. Boldyrev E.S., Metody ekonomicheskoy otsenki proektnykh resheniy (Methods for the economic evaluation of design solutions), Proceedings of International scientific and practical conference “Novye tekhnologii – neftegazovomu regionu” (New technologies for the oil and gas region), 2016, pp. 242–244.
5. Boldyrev E.S., Zakharova I.M., Tasmukhanova A.E., Economic criteria for choosing the recommended option for oil field development at different stages of the life cycle (In Russ.), Evraziyskiy yuridicheskiy zhurnal, 2019, no. 12 (139), pp. 382–385.


Attention!
To buy the complete text of article (a format - PDF) or to read the material which is in open access only the authorized visitors of the website can. .

Mobile applications

Read our magazine on mobile devices

Загрузить в Google play

Press Releases

19.11.2020
09.11.2020
21.10.2020