(MENAFN) Russian Energy Minister Alexander Novak expected the upcoming new tax changes to boost oil output by 1.4 million to 2 million barrels of oil equivalent per day, the reforms are aimed to reduce the levy on future projects and codify the existing discounts implemented for this purpose, Reuters reported.
Under the reforms, the government is expected to codify a methodology for calculating customs duty instead of setting it in monthly decrees, which left producers facing unpredictable field economics from month to month.
Tax holidays extended under the packages are expected to cover 50 fields in East Siberia containing about 20 percent of Russia's total reserves.
Among them are major undeveloped fields whose licence holders say they need tax relief to be able to start operations.
The new package offers little in the way of immediate tax relief for producers, but secures some longstanding tax breaks, meaning relief on export duty, the single largest tax item for some producers, for the long term.