E. Korzun: tax system in oil and gas sector to be given a break

​The existing tax system in the oil and gas sector needs to be given a break and no changes should be made into it, at least in 2016, CEO of the Association of independent oil and gas extraction companies AssoNeft, E. Korzun, said.

Leave the sector as it is, form stable conations for working, she said.

According to her, the structure of the modern tax system doesn’t presuppose the economy. The calculation of expenditure for geological exploration works, audit of infrastructure state of deposits, geological results – the data that needs to be taken into account in the economy, needs to be covered by all possible coefficients in MET.

The corrections made into the existing model, the so-called tax maneuver, push oil companies to extra stress, E. Korzun thinks. The additional factor is a low oil price. For oil companies the price fall below $30/barrel is significant, she said. In connection with price fluctuations the companies urgently reconsider investment programs. The expenditure for geological exploration is reduced. It is decided to shut down a number of wells. Many oil companies work on greenfield deposits.