Oil and Gas Department, School of Earth Sciences and Engineering, Tomsk Polytechnic University, Tomsk, Russia:

I. V. Sharf, Professor, Associate Professor, Doctor of Economic Sciences, irina_sharf@mail.ru
N. V. Chukhareva, Associate Professor, Candidate of Chemical Sciences

The relevance of this research is conditioned by the current changes in the hydrocarbon resource production taxation and its effect on reproduction processes in mineral resource management, namely, in upstream, including exploration and production. The research goal is to study the effect of the additional income tax on the balance of geologic survey and production in upstream by means of analysis of productive and financial performance. The research hypothesis suggests that the additional income tax is an indirect factor of imbalance in upstream due to a great focus of production companies on oil and gas extraction and their low interest in reproduction of hydrocarbon resource potential, in particular, in unexplored subsoil sites. The research results have shown that the additional income tax is a balanced tax meeting some financial interests, namely, the government budget provision due to the presence of elements minimizing the budget risks as well as increasing the financial and investment performance of oil production companies thanks to peculiarities of tax calculation. However, there is an imbalance between geologicexploration and production in upstream since regulatory and stimulation functions of excess profit tax are not performed to the full extent despite the many-fold decrease in the given tax burden. In exploration the investment prevails that is aimed at maximizing resource production in the extraction sites in the short-term. In view of the national strategic tasks, it is necessary to take measures to laying oil companies under obligation to invest a definite part of profit in hydrocarbon resource base reproduction to expand the investment potential of long-term exploration projects.

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