Nowadays, the issue of rehabilitating the qualitative reserve base in old oil producing regions gains particular importance. This situation has emerged amid steadily increasing share of unconventional reserves. There are large reserves of super-viscous oil (SVO) in the Republic of Tatarstan. In the last 20 years, TATNEFT PJSC has implemented a project for development of industrial process to locate, produce and treat SVO successfully using homegrown technologies instead of foreign ones which became possible due to state support. This paper presents the problem of lack of prospects for SVO development projects due to annulment of tax incentives for heavy oil production. Formed tax environment (the same as the one used for conventional oil production) can’t ensure favorable economics for SVO production. Under the conditions of increased tax burden, producer is forced to refuse to involve new SVO deposits in the development because high operational and capital expenses associated with such projects do not allow to reach an acceptable level of economic effectiveness. Such situation can lead to exhaustion of existing producing reserves and project close out. This paper proposes ways to change the current tax system which will enable to develop SVO reserves economically effective, to increase government revenue and to keep unique expertise in this industry.
References
1. Federal Law no. 342-FZ “O vnesenii izmeneniy v glavy 25.4 i 26 chasti vtoroy Nalogovogo kodeksa Rossiyskoy Federatsii” (On amendments to chapters 25.4 and 26 of part two of the Tax Code of the Russian Federation) from October 15, 2020, URL: https://www.garant.ru/products/ipo/prime/doc/74658110/ ?ysclid=ly4bv96civ641212778
2. Federal Law no. 389-FZ “O vnesenii izmeneniy v chasti pervuyu i vtoruyu Nalogovogo kodeksa Rossiyskoy Federatsii, otdel’nye zakonodatel’nye akty Rossiyskoy Federatsii i o priostanovlenii deystviya abzatsa vtorogo punkta 1 stat’i 78 chasti pervoy Nalogovogo kodeksa Rossiyskoy Federatsii” (On amendments to parts one and two of the Tax Code of the Russian Federation, certain legislative acts of the Russian Federation and on the suspension of the second paragraph of paragraph 1 of Article 78 of part one of the Tax Code of the Russian Federation), URL: from July 31, 2023,
URL: https://www.garant.ru/products/ipo/prime/doc/407357167/ ?ysclid=ly4civl7gr952394553
