Yugra Authorities Forecast Growth for Small Oil Companies

22.04.2009 — News

KhMAO.

Amendments to the Russian tax legislation will open up possibilities for reactivating of 17 thousand low-output oil wells in Ugra. The regional government forecasts that following the profit tax cut for wells with daily output under 10 barrels (1.3 tonne), small and medium oil companies will create 6 to 8 thousand new jobs in KhMAO.

Aleksandr Filipenko, the Ugra Governor, said that in 2009 prospecting work in the region will require a budget of over 700 million roubles, of which over 410 million roubles will be financed by the federal government. At the same time he forecasts that the annual oil production will be on the decrease for the next twenty years.

"Current oil production in Ugra amounts to 277 million tons, by 2020 it will be 250-260 million, by 2030 - about 220 million", Mr. Filippenko stated in his interview to the Novosti Ugry (Ugra News) newspaper. Experts forecast that for the next two decades half of Russia's oil will be produced in KhMAO.