Tax benefits implementation

26 Mar 2008 10:21

O.A.O. Tatneft26 March 2008 26 March 2008 Tatneft's Board discussed the implementation of the differentiated taxation On 26 March 2008 OAO Tatneft ("Tatneft" or the "Company") issued a press releaseaddressing certain matters discussed at the meeting of the Board of Directors ofthe Company held on 26 March 2008 (the "Press Release"). The Press Releasementioned that the Board discussed, inter alia, the implementation of thedifferentiated taxation of natural resources production ("NDPI") at the oildeposits developed by the Company. Tatneft currently develops five oil fields with the depletion ratio of reservesabove 80% with annual production over 16 mln tonnes that meet the requirementsset forth in the Tax Code for differentiated taxation of natural resourcesproduction tied to the level of depletion of reserves. Tatneft has beenapplying the differentiated tax rate for the crude developed at Romashkino oilfield since 1 January 2007. Due to the measures undertaken by Tatneft, in 2007differentiated taxation was applied to 15.2 mln tonnes of oil produced by theCompany or to 94.6% of oil that is subject to tax benefits. In 2007, total tax savings of the Company related to the application of NDPIwere approximately 5 bln Rubles. These funds were partially used to finance theextension of economic life of oil fields. The Company currently conducts worksfor establishment of separate direct bookkeeping of oil at four oil fieldsdeveloped by Prikamneft Production Unit with the annual production ofapproximately one million tonnes. In addition, since 1 April 2007 Tatneft applies other tax incentives (zero taxrate) for the production of viscous (heavy) oil on Ashalchinsky andMordovo-Karmalsky oil fields. Forward-looking statements: This information may contain certainforward-looking statements of OAO Tatneft. OAO Tatneft does not guaranteeoccurrence of any events mentioned in such statements as well as term of theiroccurrence. This information is provided by RNS The company news service from the London Stock Exchange