Building of new transport infrastructure to the fields of Trebs and Titov in the Nenets Autonomous Okrug as a term of contact will scare off investors, RBKDaily reports citing Constantine Yuminov, an analyst of Rye, Man and Gor Securities.
"The attractiveness of Trebs and Titov oil fields, was that the crude oil produced there, was considered as export one, because there had been already an appropriate transport infrastructure", the expert says. In his view, the construction of new infrastructure, aimed at recycling nearly 40% of crude oil within the country, would be acceptable for companies only if they are granted tax breaks on these sites. He estimated that the construction of the pipe of capacity 5-10m t/y to the Transneft’s pipe system, might cost the companies from 1,3 to 2,7 bn rubles.
Earlier, the Federal Agency for Subsoil Usage (Rosnedra) has published the final terms of bidding for the fields Trebs and Titov located in the Nenets Autonomous District. The field lease will be sold at an auction on December 2nd. Initial payment will amount to RUB18.171 billion. Before October 28, the competition participants are required to provide the technical and economic indicators and suggestions about the size of one-off payment. The fee for participation in the bidding - 606.700 rubles. The license period - 25 years, including five years for geological prospecting.
One of the bidding terms is that a licensee must "execute during the term of the license processing of hydrocarbons in amounts not less than 42% at the refining facilities owned by the bidding winner, as well as sell the processed products on the Russian Commodity Exchange in amount of not less than 15 %".
"The attractiveness of Trebs and Titov oil fields, was that the crude oil produced there, was considered as export one, because there had been already an appropriate transport infrastructure", the expert says. In his view, the construction of new infrastructure, aimed at recycling nearly 40% of crude oil within the country, would be acceptable for companies only if they are granted tax breaks on these sites. He estimated that the construction of the pipe of capacity 5-10m t/y to the Transneft’s pipe system, might cost the companies from 1,3 to 2,7 bn rubles.
Earlier, the Federal Agency for Subsoil Usage (Rosnedra) has published the final terms of bidding for the fields Trebs and Titov located in the Nenets Autonomous District. The field lease will be sold at an auction on December 2nd. Initial payment will amount to RUB18.171 billion. Before October 28, the competition participants are required to provide the technical and economic indicators and suggestions about the size of one-off payment. The fee for participation in the bidding - 606.700 rubles. The license period - 25 years, including five years for geological prospecting.
One of the bidding terms is that a licensee must "execute during the term of the license processing of hydrocarbons in amounts not less than 42% at the refining facilities owned by the bidding winner, as well as sell the processed products on the Russian Commodity Exchange in amount of not less than 15 %".