EEF 2019The Russian Continental Shelf: Is Development Necessary?
Recently, a number of changes have been introduced into the Tax Code that consolidates exploration expenses with extraction results in Prirazlomnaya with a 1.5 multiplier. Thus, the state stimulation for exploration reaches 30%. However, this mechanism only works for greenfield exploration. <…> First thing the state could do to stimulate extraction is cover the entire exploration field with 1.5 multiplier. <…> Second, <…> if we look at the experience of other countries that work their shelf – Norway, Brazil, China – we’ll see discounted financing to create the infrastructure around their fields. That would be a key step for us. <…> Next step we could implement <…> is labelling all Arctic shelf exploration projects as 4th complexity category