25 Feb 2010 17:55

Gazprom estimates investment in gas field development in Yamal at $165 bln-$199 bln

MOSCOW. Feb 25 (Interfax) - OJSC Gazprom estimates investment in its development of gas fields on the Yamal Peninsula at $165 billion-$199 billion, the deputy head of the company's directorate for forecasting integrated development of capacity, Vasily Savchenko, said at a round table meeting held at the State Duma on Thursday.

Gas production in the region is forecast to reach 310 billion-363 billion cubic meters by 2035 through the implementation of the company's investment program.

He said that program would provide a return on investment only with the introduction of gas and customs benefits.

"Under the current tax system, only the development of the Bovanenkovskoye field will be completed [the initial launch of the field is slated for 2012]. The development of the remaining fields will be very difficult," Savchenko said.

Total tax revenue for the budget from the program's implementation with the current tax system will come to $155.3 billion. This figure would come to $265.5 billion with the allocation of tax benefits.

Gazprom is also requesting that the program be given state status.

Commenting on this proposal, the chairperson of the lower chamber's (State Duma) committee on natural resources, Natalya Komarova, said: "Budget legislation does not foresee giving the program such a status. It is necessary to change the legislation. Therefore, we need to determine how to attain such a status through procedure."

She also said that the committee would hold its next meeting on March 11 when it will review the development of the Yamal-Nenets Autonomous District and the development of the Krasnoyarsk Territory.