PRESS: Lukoil opposes MET on associated petroleum gas

MOSCOW, Dec 25 (PRIME) -- Russian oil major Lukoil opposed introduction of the mineral extraction tax (MET) on associated petroleum gas, CEO Vagit Alekperov told Kommersant business daily in an interview released on Wednesday.

“What is MET on associated petroleum gas? This is a product on which we still need to spend money in order to be able to commercialize it, and they put MET on it. This is a complete nonsense,” he said.

“We have always been punished for burning it. We have invested hundreds of billions of rubles in order to utilize it. The associated petroleum gas utilization rate of Lukoil today is above 97%, we have our own gas processing plants, our own generation. In order to utilize gas, we generate electric power. So why charge MET? At a well, or after a gas processing plant, or in electrons after generation? This is generally a matter that needs to be discussed,” Alekperov said.

He said he discussed the issue with Energy Minister Alexander Novak and Deputy Prime Minister Dmitry Kozak.

“I hope that our arguments that MET on associated petroleum gas is not used anywhere in the world will be heard,” he said.

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