The Ministry of Natural Resources and Ecology of the Russian Federationelaborated amendments to the departmental order to extend the “application” principleto hydrocarbon sites

The application principle envisages that the company that applies first will obtain the license for an understudied site of subsurface resources. Meanwhile, the size and area of sites given out to the users of subsurface resources will be limited: no more than 3 sites, whereby the information on the stock of raw materials is absent, and the area shall not exceed 500 sq. km with regard toraw hydrocarbon deposits, as it is reported on the official website of the Ministry of Natural Resources and Ecology. 

         At present, the users of subsurface resourcescan obtain a license forgeological survey at understudiedhydrocarbon sites only after they apply for inclusion of such a site in the list. But this doesn’t guarantee that theuser of subsurface resourceswill obtain the license, since several companies can claim the site after it is included into the list.

At present, the “application” principle extends only to the search of deposits of solid minerals.

As it was earlier acknowledged by the Head of the Ministryof Natural Resources and Ecology of the Russian Federation, Sergey Donskoy,the users of subsurface resourcesfilled in record-breaking 746 applications over the last 2 years. Following the review results, 305 licenses were provided. Meanwhile, over the last 10 years, no more than 25 licenses for geological surveying were provided on the average per year.

Extension of the application principle will allow to compensate for the decrease in investments into geological exploration, which is related to the macroeconomic situation.

The project is referred for approval to the ministries and authorities.

Press Service of the Ministry