Abkhazia extends Rosneft Black Sea exploration license by 3 yrs
SUKHUMI. June 18 (Interfax) - The Cabinet of Abkhazia decided on Wednesday to give Rosneft another three years to conduct exploration on the Gudauta shelf in the Black Sea.
Deputy Economics Minister Akhra Aristava, who presented the new version of the government order, said that the Russian state oil major did not manage to meet the exploration deadlines set in the license due to objective reasons and is asking for a three-year extension to explore the Gudauta shelf.
Under the license, Rosneft was supposed to complete exploration of the Gudauta shelf within five years and produce hydrocarbons in the remaining 40 years of the license.
"Thus, the company's specialists will study the Gudauta offshore block for eight years out of 45, and then work on its development for another 37 years," Aristava said.
"The total duration of the contract is not changing. The amount of investment in this period will amount to more than 22 billion rubles. According to forecasts, at least 15% of this amount will go into the republic's budget in the form of tax payments," Abkhazia Deputy Prime Minister Dmitry Serikov said.
Abkhazia Prime Minister Artur Mikvabiya said earlier after a meeting with Rosneft president Igor Sechin that the Russian company is prepared to finance agricultural projects in Abkhazia, and invest money in the construction of a port and modern oil depot in the republic.
Rosneft has been operating in Abkhazia since 2009 under a cooperation agreement it signed with the republic's Economics Ministry.
