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Tax break break on Shtokman mooted
Posted 02.04.2012 09:05:21 av John Bradbury
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Russia's energy minister Sergei Shmatko has indicated tax breaks will be granted to offshore field developments as long as they generate high enough profits which could mean a deal is on the way for the Shtokman development.

Shmatko gave the signal while talking to reporters after a meeting with Russian Prime Minister Vladimir Putin, the Moscow Times newspaper has reported on its website.

He told journalists that because the risks for offshore projects were higher than for onshore east Siberian oil field developments, their profitability therefore needs to be higher.

“The government will definitely consider tax breaks for Gazprom’s Shtokman project in the Barents Sea,” Shmatko said, the newspaper reported.

Last Thursday Gazprom's two European partners in the Shtokman development, Total and Statoil, met and again decided to delay a final investment decision on the project until 1 July, with an investment figure now being quoted at US $40 billion. Previously the FID had been expected at the end of 2011.

Back on 23 March, Russia's deputy finance minister Sergei Shatalov said the Shtokman development partners had so far failed to provide sufficient information to qualify for any tax deal, Interfax reported.
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