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The government will consider the bill about the distribution of service risks in the oil and gas extraction in Russia

The law may help to allocate responsibility for production of oil and gas.

Moscow, Nov 4 – IA Neftegaz.RU. The government submitted to the state Duma a bill allowing to conclude agreements on service risks in the extraction of hydrocarbons in Russia as a part of consortia.

Relevant information contained in regulatory documents of the lower house of Parliament.

The law may help to allocate responsibility for production of oil and gas.

He touches including offshore territories.

It is noted that today in the Russian legislation there is no “acceptable forms of implementation of joint activities” with the production of hydrocarbons.

Thus, Russia needs to attract private (including foreign) investment in the development of tight oil reserves and resources of the continental shelf.

If the law is passed, companies operating in consortiums, will be able to prescribe the mechanism of distribution of risks and profitability from the extraction of hydrocarbons in Russia, not citing foreign law, as it happened until now.

The law also needs to make the Russian jurisdiction more attractive for domestic and foreign investors in the oil and gas industry.

The authors of the law propose to give the right of ownership to extracted raw materials the other side, which has a license to develop the site.

The right to raw materials passes to the project operator in the course of distribution of the results of joint activities.

At the same time, the right operator can get only the part that is defined in the agreement.

Parties to the agreement on service risks, according to the bill, can be legal entities established under Russian law and foreign legal entities.

Each member of a management agreement will Finance part of the costs in a certain percentage of the total cost. Each participant will receive the same share in the compensation part of the allocated resources or income from their sale.

Service model contracts involves the participation of companies as investors and developers of resources, the state in case of successful implementation of the project will return their investment, and remuneration.

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