Report: Pertamina says tax issues may halt Russia oil investment

MOSCOW, Aug 16 (PRIME) -- Tax issues related to oil imports to Indonesia can prevent state oil and gas company Pertamina from entering two projects of Russian oil major Rosneft, Reuters reported on Wednesday, citing Syamsu Alam, head of the department for exploration and development.

In October 2016, Rosneft said that Pertamina could get up to 20% in the offshore Northern Chayvo project on Russia's island of Sakhalin and up to 37.5% in the onshore Russkoye field in Siberia.

The proposal came after the two companies agreed that a refinery joint venture in Indonesia will be located in Tuban on Java Island.

Alam said as quoted by Reuters: "The economic viability does not work for us if you take into account the tax issue."

Reuters said it was still unclear what a tax would need to be paid on the crude imports.

Pertamina informed Rosneft that it was having difficulties with closing the deal and that it understood that the stakes could be offered to others buyers.

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