Gazprom Neft asks govt to speed up introduction of discounted duty for Messoyakha
MOSCOW. Feb 27 (Interfax) - Gazprom Neft , which is developing the Messoyakha project in the northern Yamal-Nenets Autonomous District on an equal footing with TNK-BP , has asked the Russian government to speed up introducing a discounted export duty for Messoyakha-produced oil.
Gazprom Neft chief Alexander Dyukov voiced this request in a letter to Russian Deputy Prime Minister Igor Sechin, made available to Interfax. Gazprom Neft confirmed to Interfax that the company has indeed submitted such a letter requesting a preferential duty for Messoyakha.
On the basis of geological exploration work and reserves clarification carried out at Messoyakha in 2010 and 2011, Gazprom Neft and TNK-BP have elaborated alternatives for developing this project, including taking into account costs for building a pipeline system in the Yamal-Nenets Autonomous District, the letter said.
"All economic calculations, in which we used various oil price scenarios, exchange rates, production profiles, capital and operational costs, as well as transport expenditures, show that developing the Messoyakha group of fields cannot be economical under the current customs and tax system. The solution for this problem could be introducing a discounted export customs duty for oil produced at the Messoyakha group of fields - similar to those granted for other major Eastern Siberian fields," the letter said.
Gazprom Neft and TNK-BP need to make a fundamental decision this year on whether to start full-scale investment in Messoyakha, in order to ensure the timely development of its fields and to fill the Zapolyarye-Purpe main pipeline with oil, the letter said.
All the materials on formulating system of measures aimed at stimulating Messoyakha's development have been submitted to the Energy Ministry, examined and recommended in order to prepare proposals, Gazprom Neft said.
"Considering how long it has taken for the interested agencies to consider, agree and formulate the issue of providing a discounted export duty, we ask you, dear Igor Ivanovich, to give the order to the relevant federal bodies in the executive branch to begin working through the materials with the aim of establishing a discounted rate for the export duty on oil produced at the Messoyakha group of fields and, if necessary, to introduce proposals to change the customs nomenclature of the Customs Union's foreign economic activities," the letter said.
Implementation of the Messoyakha project in 2015-2040 could ensure up to 225 million tonnes of cumulative oil and gas condensate production, and investments will top 500 billion rubles, Gazprom Neft said. A new region of oil production is appearing in Russia, at which up to 10% of all Russian oil production will occur by the end of this decade, it said.
Development of the Messoyakha group of fields is envisaged in the general scheme for developing the oil industry by 2020, as well as in the comprehensive program for developing oil fields in the Yamal-Nenets Autonomous District and in the north of the Krasnoyarsk territory.
Gazprom Neft and TNK-BP spun Messoyakha off of Slavneft into a separate joint venture, Messoyakhaneftegaz, which the two companies own on a parity basis. Messoyakhaneftegaz owns a license for exploration and development at the East Messoyakha and West Messoyakha licensed sections, which are located on the Gydan Peninsula in the Yamal-Nenets Autonomous District.
C1+C2 recoverable reserves of oil and condensate at the West Messoyakha and East Messoyakha fields come to 560 million tonnes, while recoverable gas reserves total 230 billion cubic meters (bcm).
Gazprom Neft and TNK-BP view Yamal's fields as a "point of growth" for their production over the next few years. According to preliminary estimates, their investments in developing the Messoyakha group of fields could reach $15-$18 billion.