Lukoil to revise investment over no tax preference on viscous oil

NIZHNY NOVGOROD, Feb 12 (PRIME) -- Russian oil major Lukoil will have to revise its investment program as the government abolished tax preferences on production of highly viscous oil, First Vice President Azat Shamsuarov told PRIME on Friday.

Amendments to taxation of the oil industry came into force on January 1, including termination of preferences on the mineral extraction tax for production of highly viscous oil and a reduced export duty for some projects that make highly viscous oil.

“This decision to cancel preferences was made at the government level. It is obvious that we would have to revise these directions in our investment program,” Shamsuarov said, adding that oil companies and the authorities were discussing ways to soften the tax regime.

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