Rosneft, government sign investment deal on Priobskoye field

MOSCOW, Feb 5 (PRIME) -- Russian oil major Rosneft, the Finance Ministry, and the Natural Resources and Environment Ministry have signed an investment agreement to stimulate oil production at the Priobskoye oilfield, the Finance Ministry and the company said in a joint statement on Friday.

“Under the agreement, Rosneft undertakes obligations of additional investment in development of oil production at the Priobskoye field,” the statement read.

The agreement defines a planned amount of production in 2021–2032 without a tax exemption, which the company will have to raise after it gets the exemption. In total, the company may receive no more than 460 billion rubles through the exemption throughout the years.

The document also outlines an order of oversight, and Rosneft has to report to the Finance Ministry for each three years providing details on planned and actual oil production, as well as providing other factors that would be used in calculation of revenue of the federal budget.

“The document strictly defines conditions for provision of tax incentives and responsibility for non-compliance with conditions of the agreement. This mechanism will help state support achieve its goals of improving investment attractiveness of the company and supporting development of several sectors of the economy,” Finance Minister Anton Siluanov said as quoted in the statement.

(75.7293 rubles – U.S. $1)

End %%md/jst%%