Russian Government to issue Lukoil benefits

November 15, 2012

The Russian government has agreed to apply special tax regimes to several fields operated by Lukoil in the Caspian allowing the private company to  operate at a profit.

Lukoil has licenses to develop several large deposits in the Caspian Sea, in particular, the name Filanovsky, name Korchagin name Kuvykina and others. While being only the active development of the field name Korchagina, and on the other Lukoil wants to start production in the next few years.

According to the forecast of the Lukoil, until 2040, the company can produce from fields in the Caspian Sea, 140 million tons of oil equivalent. To implement the plan, the company and need tax relief.

According to the data, the government found it possible to extend the Lukoil tax holidays MET introduce a reduced rate of export duties and provide other benefits. These measures, as stated in the Lukoil, will make the project viable.

The government has repeatedly said that the oil companies are able to provide significant benefits for the taxes and duties for the development of offshore projects. Thus, as a rule, it was a northern oilfields. In the Lukoil, in turn, insisted that the benefits should be extended to the Caspian.

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