Russian Tax Benefits Tatneft to the Tune of 5B Roubles
Tatneft reported that one of the key issues discussed at the meeting was providing facilities to comply with the terms of differentiated Mineral Recovery Tax levied for the fields operated by Tatneft.
Under the Federal Law FZ-151 five Tatneft's fields depleted for 80% and more and with overall oil production of 16 million tons per year meet the terms of differentiated Mineral Recovery Tax. Since January 1, 2007 the Company has been applying the differentiated Mineral Recovery tax for the crude produced from the Romashkino oilfield where in a short time the Company managed to carry out a required scope of work to set up the crude oil custody transfer metering facilities.
As a result of the work accomplished Tatneft's crude oil output, which enjoyed the differentiated mineral tax in 2007, totaled 15, 2 million tons i.e. 94, 6% of the total potential oil production capacity subject to the tax relief terms. In 2007 Mineral Recovery Tax benefits for OAO Tatneft amounted to about 5 billion roubles a portion of which were allocated to extend the economic life of the fields. Currently the individual crude oil custody transfer metering facilities are being installed at four more fields, operated bó the Prikamneft Oil and Gas Production Unit with overall oil output of about 1 million tons per year.
Since April, 2007 OAO Tatneft has been enjoying tax benefits (Zero Mineral Recovery Tax) for the extra-viscous oil recovered from the Ashalchinsky and the Mordovo-Karmalsky fields.
The Board of Directors requested the Executive Management to continue these activities.
The Board of Directors discussed the jubilee arrangements to celebrate the 60th anniversary of the development of one of the world's largest Romashkino oilfield. The company intends to hold an all-Russia Science and Technology Conference as well as other jubilee activities dedicated to this remarkable event.
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