The government plans to introduce incentive rents for unconventional hydrocarbons
The Ministry of Energy and Environmental Protection plans to reduce the rates of subsoil use rent for production of oil and condensate from existing (old) wells.
This is stated in the Report on the Government Activity Program for 2019.
The plans, announced by the Ministry, include introduction of the incentive rates for the subsoil use, i.e. the production of oil and condensate from the new wells. The government will support in the VR a bill to amend some legislative acts on the development of the oil and gas industry.
It is planned to reduce the rents for oil and condensate production from existing (old) wells to 29% and 14%, depending on the depth of deposits.
In addition, it is planned to introduce the incentive subsoil use rent rates for production of unconventional hydrocarbons (to a level not higher than 5%).
We remind that the Cabinet of Ministers adopted a resolution “On Amendments to the Procedure for Special Subsoil Use Permits Issuance”.