List of blocks subject to EPT expanded to include Rosneft, Surgutneftegas, Gazprom Neft, NNK, Pechoraneftegaz and Lukoil

MOSCOW. June 10 (Interfax) - The Russian government has increased the list of blocks to be developed under the EPT (excess profits tax) system.

At present, the bill on increasing the list of blocks is being prepared for the second reading in the State Duma. During the first reading, it was assumed that within the third group, application of the EPT will be extended from 39 to 43 sites from January 1, 2023, and within the fourth group application of EPT is due to be extended from 32 to 55 sites as early as January 1, 2022. After a number of meetings, 26 more plots have been added to the list of the third group.

The names of the blocks themselves are not mentioned in the bill, with only coordinates given.

Meanwhile, according to the Rosgeolfond register, 6 more Rosneft blocks (Ugutsky, Kalchinsky, Solkinsky (south), Severo-Tarasovsky, Maysky, Lyukpaysky) were added to the third EPT group by the second reading of the bill, as well as one Lukoil block (Vatyeganskiy (South-Eastern part)), 4 Surgutneftegas blocks (Tyanskiy, Zhumazhanovskiy, Arigolskiy, Zapadno-Arigolskiy), 4 Gazprom Neft blocks (Krapivinsky, Vyngapurovsky, Severo-Yangtinsky, Umseisky), 5 NNK blocks (Severo-Variogansky, Sredniyurovsky, Permyakovsky, Ai-Yegansky, Khvoiny) and 6 Pechoraneftegaz blocks (Yuzhno-Tebuksky, Sotchemyusky, Sosnovsky, North-Irailskaya area, Sorominsky and Tul-Yegansky).

Ultimately, according to the text of the bill, the third group of NDD will include 69 sites.

There are also plans to expand the number of plots in the fourth EPT group - by 33 plots.

According to the Rosgeolfond register, this concerns 21 Rosneft blocks (Yugansk 11-13 and 20, Salym 7, Surgut 5, Vostochno-Unlorskiy, Ledyanoy, Severo-Ityakhskiy 3, Zapadno-Gerasimovskiy, North-Pudinsky, Ai-Yaunsky, Mytayakhinsky, South-Tarkosalinsky, West-Kharampursky, South-Erginsky, West-Erginsky, Polunyakhsky, Novoendyrsky, Tortasinsky, Gerasimovsky).

Surgutneftegaz will be able to transfer 8 more blocks (Severo-Tukansky, Vostochno-Serginsky, Vostochno-Sinyogansky, Emangalsky, Zapadnonyalinsky, Novonyalinsky, Vostochno-Laminsky, Zapadno-Tumanny) to the fourth EPT group, Gazprom Neft - 3 plots (Polevoy, Novy, Pyakutinsky) and NNK - 1 plot (Vontersky).

As a result, according to the text of the draft bill, the fourth group will include 88 plots.

Starting on January 1, 2019, the EPT system is being applied to five groups of fields.

The third group (brownfields) includes plots in the Tyumen Region, Khanty-Mansi Autonomous District, Komi Republic (39 blocks in total) with oil reserves depletion from 20% to 80% as of January 1, 2017 or from 10% to 80% as of January 1, 2017, if the area has been in development for over six years, and areas within the North Caucasian Federal District and the Sakhalin Region.

The fourth EPT group includes 32 blocks: they include blocks in the Tyumen Region, Khanty-Mansi Autonomous District, Yamalo-Nenets Autonomous District, and the Komi Republic with a degree of oil reserves depletion not exceeding 5% as of the beginning of 2017, with initial recoverable oil reserves of less than 30 million tons, as well as in the Orenburg and Samara Regions. Initial recoverable reserves should now not exceed 45 million tons as of the beginning of 2017.