Putin gives instructions to analyze incentives for developing the Vankor field
YUZHNO-SAKHALINSK. March 21 (Interfax) - Russian Prime Minister Vladimir Putin has instructed involved state institutions to analyze proposals for giving Rosneft incentives for the development of the Vankor Oil Field by May 1.
"I am giving instructions to analyze proposals and the feasibility of prolonging the term of incentives for Vankor by May 1," Putin said at a meeting in regards to the development of the Far East's fuel and energy industry.
Export duty discounts on oil produced at Vankor are in effect until May 1, 2011.
According to a government decision, a discounted export duty is in effect for 24 fields located in Eastern Siberia and the North Caspian. These incentives are valid until a project reaches a margin level of 16%. The Vankor field, which is currently on this list of fields, might reach this margin level in 2011.
However, Rosneft chief Eduard Khudainatov said that Vankor's current margin only comes to around 10%. "To date we have a margin of only 10%. But we are putting in money and investing," he said.
"We need to reach a level of 25 million [tonnes of oil]. We definitely need a time-out," Putin he said.
According to Russia's Energy Ministry, the Vankor Field, which is currently the main field ensuring an increase in Russian output, might reach a production level of 25 million tonnes by 2015.
