Russian Duma passes law to include extra-viscous oil fields in third EPT group

MOSCOW. July 21 (Interfax) - Russia's State Duma has passed at third reading a law to include oil fields with reserves of extra-viscous oil in the third excess profit tax or EPT group.

The government introduced the relevant bill, No. 369931-8, to the parliament in May.

The proposal is to make fields where at least 70% of the oil produced per year has a viscosity of 10,000 mPa or more in reservoir conditions eligible for the tax.

In addition, the law proposes to delay the start of the tax deduction from 2024 until 2027 and to extend until the end of 2026 of the restriction on lowering taxable profit due as the result of recognized losses.

At present, the third EPT group, which consists of brownfield properties, includes blocks in the Tyumen region, Khanty-Mansiysk Autonomous District, Yamal-Nenets Autonomous District and the Komi Republic with oil reserves depletion of between 20% and 80% as of January 1, 2017 or between 10% and 80% as of January 1, 2017, if the subsoil area has been under development for more than six years. Blocks in the North Caucasian Federal District and the Sakhalin Region are also included.

The law will come into effect from 2024.