Private Russian cos, foreigners should participate in offshore development, but under state mgmt - lawmaker

MOSCOW. July 7 (Interfax) - Private Russian companies and international investors should participate in the development of Russia's offshore deposits, but under the management of Russian state companies, the chairman of the State Duma Energy Committee, Pavel Zavalny said.

"The shelf is a subject of international cooperation. There is an economic zone there, international waters, but at the same time the shelf abuts our territory. There is a big conflict of interests of various countries there, even non-Arctic countries. They are showing interest against the backdrop of global warming," Zavalny said.

Strict government regulation is needed in this issue, he said. "This guarantees the state that we will maintain influence over decision making, including as regards the environment, that there will not be a predatory attitude toward natural resources, the fragile Arctic environment," Zavalny said, recalling that foreign companies cannot actively participate in projects under production sharing agreements due to sanctions and now their assets have to be transferred to Russian jurisdiction.

"I am in favour of there being government regulation, but this does not mean that there shouldn't be international cooperation and that we shouldn't invite private companies. One of the best companies in the country, which has technologies for development of offshore fields - in the Caspian, in the Baltic, is of course Lukoil . And of course, Lukoil simply must participate in these projects on some sort of terms," Zavalny said.

"And we need to create a legislative framework in such a way that both our Russian and international companies have the opportunity to participate in the development of these fields, but with management of these projects by state companies as a guarantee that the country's interests will be fully taken into account," Zavalny said.