Gazprom Neft Called for Further Expansion of the Tax Regime of the AIT
Gazprom Neft stands for further expansion of the additional income tax regime, this will improve the economics of oil production projects, the head of the company Alexander Dyukov told reporters on the sidelines of the WEF.
“The AIT is an excellent tax tool that has already proven to be highly effective for both the industry and the budget. It is important to continue to expand the use of this mechanism. We still have quite a large number of deposits that could be attributed to the third or fourth AIT group,“ he said.
“This, of course, will improve the economics of field development projects, will contribute both to maintaining production volumes and, if necessary, to production growth,“ Dyukov believes.
Gazprom Neft is involving more and more hard-to-recover reserves in the development. According to Dyukov, the company is entering new provinces with harsh climatic conditions and lack of infrastructure.
“Therefore, a certain reconfiguration of the tax system is needed, which would be flexible and encourage companies to invest money in the development of complex reserves and in the development of new production regions,“ the head of the company summed up.
For the commissioning of hard-to-recover reserves, the company is developing new technologies, including digital ones, and creating new Russian equipment, says Dyukov. At the same time, the use of domestic equipment is often cheaper, which helps the company to reduce costs. However, for the active development of hard-to-recover reserves, as the head of Gazprom Neft emphasizes, oil companies need state assistance and flexibility from the budget.
Also commenting on the topic of taxation, Dyukov added that in terms of oil refining, the Cabinet of Ministers is preparing a decision on its support in the future.
“Now there is a subsidy in the form of a fuel damper, but the government needs to decide whether to extend it or not,“ he concluded.
The Eastern Economic Forum is taking place on September 3-6 on the campus of the Far Eastern Federal University in Vladivostok. RIA Novosti is the general information partner of the WEF–2024.
