17 June 2004 21:41
Russia unable to increase oil production quickly - Gref
MOSCOW. June 17 (Interfax) - In current conditions Russia is unable to increase oil production quickly, Economic
Development and Trade Minister German Gref said at a government meeting on Thursday.
Gref said that oil production in 2004 will amount to 450 million
tonnes, in 2005 - 460 million tonnes and in 2006-2007 - 475 million
tonnes. "This is a very small dynamic - less than 5% per year,
"We are unable to say that we are ready for a surge in oil production," he said.
said that in 2004 the federal budget is expected to lose 24 billion
rubles from the fact that a number of fields were not sold due to
therefore the problem is that we are not availing of possibilities," he said.
He said that there are several factors holding back growth in oil production. Among these, he said that oil
companies' access to new fields has been cut off and only one field - Talakan - has entered the active development
stage. He said that there are a number of fields that were not sold or whose sale is in question. Moreover, the
minister
imperfections in the law.
Another problem that is hindering growth in oil production is the low level of exploration, which is not being
stimulated, Gref said. He also said that the condition of oil production infrastructure is also slowing down production
growth.
The minister said that the current flat rate of the mineral resource extraction tax is another problem for oil
production.
Gref said that he is confident that if oil production is stimulated using tax and economic methods, and if a new law
on subsoil resources is passed, this will solve a number of problems in this area.
He also said that it is necessary to take strict measures to control the implementation of investment conditions at
fields.
"But no final decision has yet been reached on any of these measures," he said. [RU EUROPE ASIA EEU EMRG
ENR CRU OIL RESF] rd <>
[Interfax] |
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