Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to the Davydov.Index online magazine on the revision of the AIT conditions for small oil fields.
“Large, vertically integrated oil companies are basically not interested in a group of small fields due to low profitability and low concentration of production. Such deposits are traditionally handled by medium-sized companies, most of which are members of the Аssociation of independent oil producing companies Assoneft. Most likely, it lobbied for such changes.
It is difficult for me to say exactly how much this will help medium-sized companies in exploration. But it should be borne in mind that in the Energy Strategy of Russia, which is valid until 2035, and in the General Scheme for the development of the oil industry until 2035, it is stated that in the perspective of 2035 there will be a structural reorganizing of oil production in Russia. Including - with the growing importance of developing medium and small deposits, as well as deposits with hard-to-recover reserves. By the way, small deposits are partly classified as deposits with hard-to-recover reserves due to their low profitability.
One way or another, in general, this direction is promising, but how profitable it will be in the current price and tax conditions is a matter of calculation for each specific field, because they are all unique. Plus, a lot depends on the quality of the resource base, transport infrastructure, remoteness from main pipelines, railways, public roads, etc. But in general, the idea of individual accounting for the features of such deposits is correct. And, in principle, it was provided for by the same General Scheme”.
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