Ministry: Incentives for Priobskoye field to cost budget 60 bln rbl

MOSCOW, Aug 21 (PRIME) -- Russian oil major Rosneft expects exemption on the mineral extraction tax (MET) for the Priobskoye field to save the company 46 billion rubles per year over the next 10 years, First Vice President Pavel Fyodorov said in a conference call on Wednesday.

“Stimulation of development of large-scale projects on hard-to-recover oil at the Priobskoye field at our license site will allow us to reduce MET by 46 billion rubles per year in the next 10 years and invest a significant additional sum in development of this license site,” he said.

These are revenues that have been already set aside in the budget for financing national projects, he said. “They can’t just be given away, we need to seek compensation so that we can fully finance the expenditure obligations already included in the budget. We are looking for sources of compensation, and introduction of MET on associated gas is one of them. We have no other choice,” Sazanov said..

(66.7840 rubles – U.S. $1)

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