Conclusion

• financial estimation of capital investment into one satellite well shows advantageous results;

• financial estimation of capital investment for various cases of success probability of oil recovery in satellite territories for all wells has been made at the long-term price of Brent 30 dollars per barrel and domestic price 3500 roubles per tonne;

Financial results:

• the project allows to have positive cash flows under the planned assumptions for the period through 2013;

• financing can be carried out by equity funds without any loans. Besides, schedule of cash flows shows opportunity to withdraw the loan according to the contract in 2009 without any losses for the company;

• Financial parameters NPV and IRR reflect success of investment:

• NPV for the period 2005 - 2017 is improved in 2 times;

• NPV for the period 1991 - 2017 is improved in 8 times;

• IRR for the period 1991- 2017 is improved by 13 %;

• the Company has accounting profit through 2011 (profit increase is not considered in case of writing off the fixed assets according to the Russian accounting rules when the sum of fixed assets revaluation are charged to profit account from additional capital).

• before 2009 basic part of expenses are taxes, after 2009 the basic part of expenses are operating and overhead expenses;

  • The history and factors of oil pricing are analyzed;

  • NPV at various situations with oil prices (the best and the worst) are considered. Critical point of oil price with NPV = 0 is $16 for barrel of Brent and 2300 rubles for ton;

  • Tax burden on the oil companies Is considered:

• It is established that at increase of the export price the oil companies pay 90% of price to state in case of 100 % of export and become unprofitable at 35 % of export;

• at the current tax system in our country the most sensitive factor is change of the price in domestic market, instead of external.

The analysis shows that changes on oil production tax are necessary: for example, to consider conditions of oil deliveries to export and domestic market, and to relieve from direct binding to the world oil prices. The average oil price in the domestic and export markets minus the customs duties on oil and transportation expenses should be used.

Besides this tax should be differentiated, i.e.:

- take into account of geological and economic-technological conditions of reserves;

- use of zero rate of oil production tax for certain minimal volume of oil recovery or at the initial stage of development reserves;

- decrease of tax rate for some reserves with decreasing recovery to support their further operating.

52