Lukoil expecting decision on tax breaks for high-viscosity oil in Q1, easing OPEC+ restrictions should help this

MOSCOW. Nov 24 (Interfax) - Lukoil expects a decision by OPEC+ countries to lift restrictions on oil output would prompt a decision by the Russian government to reinstate tax breaks for high-viscosity oil, the company's first vice president, Alexander Matytsyn, said on a conference call.

"The thing is that Russian Prime Minister Mikhail Mishustin signed an order on November 11, 2021, according to which the Finance Ministry and Energy Ministry must draft proposals in the first quarter on work with high-viscosity oil. Several options are being discussed at present. One is that high-viscosity oil can be produced from 2024. But the company is working on bringing that right forward. Perhaps an increased quota, the lifting of OPEC+ restrictions would help us here," Matytsyn said.

He said Lukoil had a plan for capital expenditures, but this would depend what the government decides. "We expect some parameters will be unveiled in Q1 that we'll be able to talk about," he said.