The Russian Natural Resources Ministry has called for exploration licenses to be granted to all companies wishing to search for mineral resources in the Arctic, with a further right to develop explored fields, Deputy Natural Resources Minister Igor Maidanov said on Thursday.
"We are suggesting that separate licenses for the exploration and estimation of mineral resources should be granted without limits to all companies, including foreign enterprises, interested in that business," Maidanov said at The Arctic: Territory of Dialogue international forum in Moscow.
"The license holder will have guarantees that if he discovers a field, he will have the right to develop it as part of a consortium. This will help increase the shelf's exploration degree, remove risks of early exploration stages from state companies, and preserve government control over the project."
The Natural Resources Ministry is considering a special tax regime for companies working on the shelf, including the possibility of tying taxes to profitability of fields, he said.
Maidanov said it was necessary to boost the number of companies which can work on the shelf to develop production.
"It is impossible to develop our shelf projects in the foreseeable future without a large-scale involvement of private companies, including foreign capital," Maidanov said.
Currently, only state companies Gazprom and Rosneft have the right to carry out geological exploration work on the shelf.
The ministry is proposing that large consortia, should be established with foreign companies with shelf exploration experience.
"We think that the implementation of joint economic and administrative stimulus measures will considerably increase the attractiveness of hydrocarbons exploration and development projects," Maidanov said.
MOSCOW, September 23 (RIA Novosti)
