Ministry wants to optimize mechanism for returning undesired shelf fields to govt
MOSCOW. Feb 28 (Interfax) - The Russian Natural Resources and Environment Ministry has drafted a proposal aimed at optimizing the mechanism for state-owned companies to return licenses for shelf sections in which they are uninterested, Natural Resources and Environment Minister Sergei Donskoi told reporters.
According to this mechanism, if a government-owned company does not discover a deposit during geological exploration but still wants to keep the license, the ministry will raise the subsoil use payment for that section.
The Natural Resources Ministry simultaneously wants to increase requirements on the amount of geological exploration to be carried out at such sections.
"A company has a period of geological survey, and during that period it needs to do work and make a discovery. If it doesn't make a discovery, return it to the unallocated fund. But if it decides to prolong it, we propose increasing the payment for geological survey. In other words, if you're going to extend the license, then you should pay more, since you understand that you are increasing your risk. Besides that, you should do a large amount of work on geological survey," Donskoi said.
"Fundamentally, it can't be such that you conducted geological exploration, didn't find anything and kept it for yourself and froze participation on the shelf," he said.
Donskoi added that the Natural Resources Ministry has already drafted these proposals and submitted them to the government. He stressed that in his opinion, the issue of mechanisms for state-owned companies to return licenses for sections in which they are not interested needs to be resolved as soon as possible.
"We submitted our proposals on February 20, and the government will review them. Companies have recommended leaving this matter until the end of the year, but we are against that because we need to put an end to this by the end of the year," Donskoi said.