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Russia's FinMin proposes tax breaks for hard-to-recover gas output

  • The RBC daily reported last year that Rosneft had asked the government to ease taxes for the formation where it plans to develop the giant Kharampur project with its shareholder, BP .
  • The ministry said it has proposed to cut the mineral extraction tax for Berezovskaya. The proposal is subject to further discussion.
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MOSCOW: Russian Finance Ministry has proposed easing the tax burden for output from the Berezovskaya hard-to-recover natural gas formation, it said on Friday, which would facilitate production by the energy firm Rosneft .

The RBC daily reported last year that Rosneft had asked the government to ease taxes for the formation where it plans to develop the giant Kharampur project with its shareholder, BP .

The ministry said it has proposed to cut the mineral extraction tax for Berezovskaya. The proposal is subject to further discussion.

Rosneft plans to start developing Kharampur in the northern part of West Siberia this year. It has estimated the field proven, probable and possible reserves at 739 billion cubic metres under PRMS standards.

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