Putin outlines offshore tax breaks

Tax breaks: proposals could help Shtokman partners

AFP/SCANPIX

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By News wires

 12 April 2012 18:17 GMT

Russian President-elect Vladimir Putin outlined on Thursday new rules for the development of vast offshore oil and gas resources, offering some much-needed tax breaks to make far-flung projects viable.

The new proposals, such as abolishing export duty, appeared aimed at appeasing foreign participants in the giant Shtokman gas project as well as the Arctic partnership of ExxonMobil and Rosneft.

"The move should give a positive momentum for such projects as Shtokman," Valery Nesterov from Troika Dialog brokerage told Reuters.

The world's top crude producer, which plans to produce at least 10 million barrels per day of oil until 2020, needs to sustain overall output, which is declining at its traditional and depleted West Siberian fields, tapping new deposits in the Arctic and East Siberia.  

At a meeting attended…

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