Gazprom Neft Eyeing New Tax Relief For Novoportovskoye Oilfield



Gazprom Neft Eyeing New Tax Relief For Novoportovskoye Oilfield
Russia's Gazprom Neft is considering applying to the finance ministry for a profit-based tax for Novoportovskoe, one of its largest fields.

Reuters

MOSCOW, Feb 9 (Reuters) - Russia's Gazprom Neft is considering applying to the finance ministry for a profit-based tax for Novoportovskoe, one of its largest fields, Chief Executive Alexander Dyukov told reporters on Friday.

The government approved a new, profit-based tax on the oil industry last year. The tax is expected to go into force from 2019 and would initially cover some pilot projects operated by Russian producers.

The current favourable tax regime which the Yamal-based Novoportovskoe oilfield is enjoying will end this year, Chief Financial Officer Alexey Yankevich said this week.

The oilfield, launched a couple of years ago, was forecast to produce at least 5.5 million tonnes of oil in 2017, with peak production seen at 8 million tonnes a year.

Taxes on the oil industry are currently mainly based on production - via the mineral extraction tax - and exports.

Companies have long lobbied for the profit-based taxation, saying it would boost output and better reflect costs and risks.

(Reporting by Denis Pinchuk; additional reporting by Oksana Kobzeva; writing by Polina Nikolskaya; editing by Katya Golubkova and Jason Neely)



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