Published : Feb-2018
No. of Pages : 40
1 Table of Contents 1
1.1. List of Tables 3
1.2. List of Figures 4
2. Regime Overview 5
3. State Take Assessment 9
4. Key Fiscal Terms- Royalty and Tax 10
4.1. Royalties, Bonuses and Fees 10
4.1.1. Signature Bonus 10
4.1.2. Annual Rental Fee 10
4.2. Mineral Extraction Tax 10
4.2.1. Crude Oil 11
4.2.2. Condensate 13
4.2.3. Natural Gas 16
4.2.4. New Offshore Field Incentives 17
4.2.5. Mineral Extraction Tax Holidays 18
4.2.6. Special Deduction for Crude Oil 18
4.2.7. Tax deduction for NGLs Stripped from Condensate 19
4.2.8. Special Black Sea Deduction for Gas 19
4.3. Export Duty 20
4.3.1. Crude Oil 20
4.3.2. Natural Gas and LNG 23
4.3.3. Liquefied Petroleum Gas 23
4.3.4. Export Duty Exemptions 23
4.4. Direct Taxation 24
4.4.1. Corporate Income Tax 24
4.4.2. Deductions and Depreciation 25
4.4.3. Investment Tax Deduction 26
4.4.4. Withholding Tax 26
4.5. Indirect Taxation 26
4.5.1. Value Added Tax 26
4.5.2. Import Duties 26
4.5.3. Property Tax 27
4.5.4. Land Tax 27
4.5.5. Excessive Flaring Fee 27
5. Key Fiscal Terms - Production Sharing Agreement 28
5.1. Royalties, Bonuses and Fees 28
5.1.1. Royalty 28
5.1.2. Bonuses and Other Fees 28
5.2. Cost Recovery 29
5.3. Profit Sharing 30
5.4. Taxation 31
5.4.1. Corporate Income Tax 31
5.4.2. Deductions and Depreciation 31
5.4.3. Value Added Tax 31
5.4.4. Tax Exemptions 31
5.5. Fiscal Stability 32
6. Regulation and Licensing 33
6.1. Legal Framework 33
6.1.1. Governing Law 33
6.1.2. Contract Type 34
6.1.3. Title to Hydrocarbons 34
6.2. Institutional Framework 35
6.2.1. Licensing Authority 35
6.2.2. Regulatory Agency 35
6.2.3. National Oil Company 35
6.3. Licensing Process 36
6.3.1. Auction Notice 36
6.3.2. Application Requirements 36
6.3.3. Auction Process 36
6.4. License Terms 36
6.4.1. Duration and Relinquishments 36
6.4.2. Work Obligation 37
6.4.3. Environmental Regulation 37
6.4.4. Local Content 37
6.5. Restrictions on Foreign Investment 37
7. Outlook 38
8. Appendix 39
8.1. Contact Us 39
8.2. Disclaimer 39
1.1 List of Tables
Table 1: Regime Overview 5
Table 2: Russia, Annual Rental Fees (RUB/km2) 10
Table 3: Russia, MET Base Rates - Crude Oil (RUB/tonne) 11
Table 4: Russia, Complexity Coefficient Values 12
Table 5: Russia, Oil MET - Periods in which KH = 0 for Specified Regions (Previously Regional Tax Holiday Periods) 13
Table 6: Russia, MET Rates - Condensate (RUB/tonne), 2011-June 30, 2014 13
Table 7: Russia, Notional Export Duty - Condensate (US$/tonne) 14
Table 8: Russia, Export Profitability Coefficient Values 16
Table 9: Russia, MET Rates - Non-Associated Gas, 2004-June 30, 2014 16
Table 10: Russia, New Offshore Field Incentives 17
Table 11: Russia, Export Duty - Crude Oil (US$/tonne) 20
Table 12: Russia, Marginal Export Duty Rates - Crude oil (%) 20
Table 13: Russia, Reduced Oil Export Duty (US$/tonne) 21
Table 14: Russia, Fields Eligible for Export Duty Reduction, 2010 - 2013 22
Table 15: Russia, Export Duty - LPG (US$/tonne) 23
Table 16: Russia, Export Duty Exemptions 24
Table 17: Russia, Corporate Income Tax Rate (%) 24
Table 18: Russia, Depreciable Asset Classes 25
Table 19: Russia, Withholding Tax Rates (%) 26
Table 20: Russia, Maximum Property Tax Rates (%) 27
Table 21: Russia, Kharyaga Royalty Rates (%) 28
Table 22: Russia, Sakhalin I Bonuses and Fees (US$) 28
Table 23: Russia, Sakhalin II Bonuses and Fees (US$), 2015 29
Table 24: Russia, Kharyaga Bonuses and Fees (US$) 29
Table 25: Russia, Profit-Sharing - Sakhalin I (%) 30
Table 26: Russia, Profit-Sharing, Sakhalin II (%) 30
Table 27: Russia, Profit-Sharing - Kharyaga (%) 30
1.2 List of Figures
Figure 1: Regime Flow Chart - Royalty and Tax 7
Figure 2: Regime Flow Chart - Production Sharing Agreement 8
Figure 3: Russia, Indicative NPV10/boe, IRR and State Take Comparison, Regional 9
Figure 4: Russia, Legal Framework 33
Figure 5: Russia, Institutional Framework 35
