16 Oct 2013 13:09

Tax breaks expected to boost Russia's profitable oil reserves to 20 bln t

DAEGU, South Korea. Oct 16 (Interfax) - Tax incentives will increase Russia's profitable hydrocarbon reserves from 12 billion tonnes to 20 billion tonnes, Energy Minister Alexander Novak said at the World Energy Congress.

"A tax revolution in approaches to stimulating oil and gas production took place in 2012-2013," Novak said.

He said the next step is to transition to taxing profits, which will provide an additional incentive to increase oil recovery rates.

It was reported earlier that the Energy Ministry expects to introduce an excess profits tax in 2016. In recent years Russia has introduced tax breaks for fields in Eastern Siberia, offshore fields and fields with super viscous and difficult to recover oil.