Tax values for new Russian offshore fields to be calculated on Argus-based formulas
London, Moscow, 2 October 2014
The Russian government has announced that mineral extraction tax (MET) for hydrocarbons produced at new Russian offshore fields will be calculated on Argus-based formulas. The government resolution was published on 26 September and will come into effect on 3 October.
For crude and condensate produced at new offshore fields located in the Azov and Black seas and in the Russian part of the Caspian Sea, MET will be calculated using the Argus Urals price assessment for deliveries to the Mediterranean. The Argus Urals price for deliveries to northwest Europe will be used for fields in the Baltic, White, Barents, Pechora and Kara seas. The Argus ESPO Blend price will be the basis for calculating MET on output from fields in the East Siberian, Chukchi, Bering and Laptev seas, as well as the seas of Japan and Okhotsk. These price assessments are published daily in the Argus Crude report.
Natural gas exported from new offshore fields in the European part of Russia seas will be taxed on a formula based on the Argus TTF price, which is published daily in the Argus European Natural Gas report.
Argus Media chairman and chief executive Adrian Binks said: “Accurate and reliable energy price assessments are essential for tax calculations and we are pleased that the Russian government has chosen Argus to provide this service. Russia is a key producer and exporter of oil and gas, and has chosen to use Argus prices for many purposes, including export duties for crude oil, petroleum products and LPG.”
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