Aug 6, 2021   SOURCE: BusinessWire

Russia Upstream Oil and Gas Fiscal and Regulatory Guide 2021 - ResearchAndMarkets.com

The "Russia Upstream (Oil and Gas) Fiscal and Regulatory Guide" report has been added to ResearchAndMarkets.com's offering.

"Russia Upstream (Oil and Gas) Fiscal and Regulatory Guide", presents the essential information relating to the terms which govern investment into Russia's upstream oil and gas sector.

The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state's take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Russia's upstream oil and gas investment climate.

Following the prolonged low oil prices and the suppressed oil demand due to covid-19 pandemic, Russia has moved forward with new fiscal changes as part of state's efforts to protect revenues and balance federal budget deficits.

Mineral Extraction Tax incentives related to extra-viscous and depleted fields have been removed as of January 1, 2021, whilst the phase out of Export Duty and the introduction of the Tax on Additional Income (NDM) have also been introduced during the last few years. The measures are part of a wider structural fiscal change in Russia aiming to incentivize high capital and greenfield developments in the Russian Artic and to simplify the regime by gradually transferring fields currently under the complicated MET towards the simplified NDM tax system.

The Ministry of Finance is currently working out the potential inclusion of unconventional and extra-viscous oil fields under one of the existing NDM categories, although this is not expected to be implemented prior to 2024, the year in which the OPEC+ deal expires.

Enforced sanctions by the EU and the US, and structural changes in the energy sector of Russia's key markets such as the EU and China with the acceleration towards low-carbon energy technologies are few of the long-term challenges for Russia's oil and gas sector.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Russia
  • Assessment of the current fiscal regime's state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Russia

Key Topics Covered:

1. Executive Summary

1.1 Regime Overview - Concession Agreements

1.2 Regime Overview - Production Sharing Agreements (PSAs)

1.3 Timeline

2. State Take Assessment

3. Key Fiscal Terms - Concessions

3.1 Royalties, Bonuses, and Fees

3.2 Mineral Extraction Tax (MET)

3.3 Export Duty

3.4 Tax on Additional Income (NDM)

3.5 Direct Taxation

3.6 Indirect Taxation

3.7 Land Tax

3.8 Excessive Flaring Fee

4. Key Fiscal Terms - Production Sharing Agreements

4.1 Royalties, Bonuses, and Fees

4.2 Cost Recovery

4.3 Profit Sharing

4.4 Direct Taxation

4.5 Fiscal Stability

5. Regulation and Licensing

5.1 Legal Framework

5.2 Institutional Framework

5.3 Licensing Process

5.4 Restrictions on Foreign Investments

6. Appendix

For more information about this report visit https://www.researchandmarkets.com/r/vnk4eg