The Finance Ministry is putting its weight behind a plan to cut the export duty for extra-heavy crude for the next 10 years to stimulate output.
The proposal to tax exports of the hard-to-extract crude at 10 percent of the standard levy, made by the Energy Ministry, could become law by July 1, Deputy Finance Minister Sergei Shatalov said by phone last week.
LUKoil, the country's second-biggest crude producer, and Tatneft would benefit most from the tax break as they seek to develop large resources of super-viscous oil "similar to Canada's oil sands," said Valery Nesterov, an analyst at Troika Dialog.
"Extra-heavy oil could eventually add 1 percent to 2 percent to their production figures and help compensate for falling output at mature fields," Nesterov said by telephone.
Prime Minister Vladimir Putin, set to return to the Kremlin as president for at least six years, has called for oil production to remain above 500 million metric tons a year, or 10 million barrels a day, for at least a decade. The government is looking to stimulate output to compensate for declines at mature fields in western Siberian. Oil and gas provided about half the state's budget revenue last year.
ExxonMobil is moving toward the conclusion of an agreement to drill in the Russian Arctic, chief executive Rex Tillerson said Saturday.
The agreement will include the right fiscal terms, Tillerson said in a speech at CERAWeek, a Houston conference held by IHS Cambridge Energy Research Associates.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
