Russia starts to stimulate shale oil production

Baku. 29 January. REPORT.AZ/ The Russian Ministry of Natural Resources has prepared amendments to the "Law on Earth's Subsoil" to develop oil-producing technologies in the country.

Report informs citing the Izvestiya newspaper, from 2019, extractive companies will be able to apply new methods of shale oil production in specific areas.

With the existing technology, shale oil production is challenging and costly. However, it should be noted that the traditional oil production is gradually decreasing. According to the ministry, there are currently about 400 licenses for the development of fields. 390 of them are small deposits. The largest is the Rostovtsevskoye oil and gas condensate field.

After the additions to the law, it is planned to issue licenses based on the experience and scientific base of oil companies based on the competition. Another method involves selection of companies that have previously been licensed to develop fields. In either case, the license will be free. During the landfill development, companies will be exempt from regular fees and taxes. For the development of the landfill, 7 years will be given, with a 3-year extension. After the expiration of the term, the license of this category is considered to turn into ordinary license.