Offshore Oilfield Development Could Enjoy Tax Breaks

Companies developing offshore oil deposits could enjoy tax breaks, Russia's president said Wednesday.

The tax breaks proposal came from Sergei Bogdanchikov, head of state-controlled producer Rosneft, who said the idea had been approved by the Industry and Energy Ministry and backed by the economics ministry, but that no final decision had been made.

Russia, heavily dependent on revenues from oil and gas exports, is in need of new deposits to meet its obligations under new ambitious projects to supply oil to Pacific Rim countries, as well as Europe and the United States via the Balkans. Bogdanchikov said Russia would increase the production of oil at its offshore deposits five-fold, to 80-85 million metric tons (about 624.7 million bbl), by 2015. He said $8b would be required to build vessels, including 30 tankers, icebreakers, and tugboats, to carry oil. Source: Novosti