News

Prirazlomnoe field development to be expensive with ordinary tax payment

Publish date: September 12, 2005

The price for the Prirazlomnoe oil field development in the Barents Sea will increase significantly, if the project to be implemented without production sharing agreement.

According to the Sevmorneftegaz general director Ivan Chernov, the project development is aimed at the production sharing agreement. “We have contemplated not to pay custom duties for ordered equipment and value added tax during the period of the project implementation”. Nowadays the project costs1.4 billion dollars, Agency of Oil Information reports.


“If they do not sign the production sharing agreement, the company will have to pay sufficient sums, not accounted in the project”, Chernov underlined. He did not comment how high its costs would be if the project is implemented in the frames of the ordinary tax regime.


Sevmorneftegaz relies on the Russian State Duma, which should accept corrections to the Federal Law about production sharing agreement concerning the Shtockman and the Prirazlomnoe fields this year.

More News

All news

The role of CCS in Germany’s climate toolbox: Bellona Deutschland’s statement in the Association Hearing

After years of inaction, Germany is working on its Carbon Management Strategy to resolve how CCS can play a role in climate action in industry. At the end of February, the Federal Ministry for Economic Affairs and Climate Action published first key points and a proposal to amend the law Kohlenstoffdioxid Speicherungsgesetz (KSpG). Bellona Deutschland, who was actively involved in the previous stakeholder dialogue submitted a statement in the association hearing.

Project LNG 2.

Bellona’s new working paper analyzes Russia’s big LNG ambitions the Arctic

In the midst of a global discussion on whether natural gas should be used as a transitional fuel and whether emissions from its extraction, production, transport and use are significantly less than those from other fossil fuels, Russia has developed ambitious plans to increase its own production of liquified natural gas (LNG) in the Arctic – a region with 75% of proven gas reserves in Russia – to raise its share in the international gas trade.