PRESS: Russia thinks ExxonMobil failed to meet Sakhalin-1 terms

MOSCOW, Jun 10 (PRIME) -- ExxonMobil are unlikely to have met the terms of a license to develop the Sakhalin-1 offshore field, business daily Kommersant reported Wednesday, citing sources with knowledge of the matter.

A source said that the government has held unscheduled checks at the company “to find reasons for possible claims,” which will strengthen Russia’s position in a dispute with ExxonMobil over taxes on the Sakhalin-1 development, the sources said.

ExxonMobil, which owns a 30% stake in the block, earlier submitted a lawsuit against the Russian government to the Stockholm Arbitration Court, intending to reach an agreement on a retroactive corporate profit tax cut to 20% from 35% for the Sakhalin-1 block.

A preliminary report on the checks will be discussed at a meeting chaired by Deputy Prime Minister Arkady Dvorkovich on Wednesday, the newspaper reported.

In 2006, after government’s claims that Sakhalin-2 development harmed environment and the development agreement was unprofitable, foreign investors were ousted from the project and a 50% plus one share stake in a company owning Sakhalin-2 was acquired by Gazprom.

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