ASSESSMENT OF THE APPROPRIATENESS OF APPLYING THE EXCESS PROFITS TAX FROM HYDROCARBON PRODUCTION FOR THE FIELDS AT THE FINAL STAGE OF DEVELOPMENT

The article discusses the feasibility of applying the excess profits tax from production of hydrocarbons to various types of deposits. Based on various opinions of the representatives of the scientific community, practitioners and government representatives on the feasibility of applying a new tax regime for both oil companies and the state, the author’s position is presented on the possibility of expanding the scope of the excess profits tax from hydrocarbon production, primarily in the development of fields at the final stage of development, which currently include most of the major fields in the Western Siberia. The possibility of applying this tax during the operation of an oil field at the final stage of development is studied on a specific example. A comparative assessment of the main indicators of field development at the final stage of development under the traditional and new tax regimes using the income approach using discounted cash flows was carried out. It is revealed that the application of the new tax regime will allow getting free funds that can be used to increase oil production. This will help to increase the economic and budgetary efficiency of the field development. Given the current macroeconomic situation caused by the pandemic virus COVID-19 and the volatility of the world oil market, the discounted net cash flow based on various scenarios of development of the world oil market was conducted and the parameters under which the development of the field at the final stages of development with application of the new tax regime will ensure the economic and budgetary efficiency.

late stage of oil and gas field development, tax, tax regime, taxation of oil production, tax on mineral extraction, excess profits tax from hydrocarbon production, net cash flow, modeling, oil market, budgetary efficiency, economic efficiency.

Rudneva L. N., Rudenok O. V. Assessment of the appropriateness of applying the excess profits tax from hydrocarbon production for the fields at the final stage of development. Business. Education. Law, 2020, no. 3, pp. 98–104. DOI: 10.25683/VOLBI.2020.52.382.