Source Pravda.Ru

Streamline Production-sharing Law, U.s. Petroleum Boss Calls Russia

A streamlined production-sharing law will skyrocket overseas investment in Russian fuel deposit development, said Glen Waller, external relations manager of the Russian Exxo Mobil office, as he was addressing a roundtable of the world Davos economic forum, which is holding session in Moscow. The oilfields Russia is working now will be exhausted quite soon, and to open up new deposits is a must. The effort will take ten to twelve years and US$10-15 billion before corporate investors start profiting, warned Mr. Waller. The prospects entitle investors to firm guarantees--in particular, with the production-sharing law implemented in oilfield development, he added. The federal cabinet will regard prospects to approve the taxation chapter of the production-sharing law at a November 8 session to pass it for consideration to the State Duma, parliament's lower house, which is expected to approve it in a second reading next spring--March or April, said Glen Waller. As he went over to his company's activities in Russia, the manager pointed out Sakhalin 1 oilfield development in the Russian Far East, in which it has invested four billion dollars for today, while infrastructure construction and other efforts require an approximate overall 12 billion, including the costs of a mainline to be laid from Sakhalin island to Japan. The works are to start within a few years. The company intends to join the development of other Sakhalin oilfields and mineral deposits.