DAVOS, January 22. /TASS/. Easing the Russian oil sector’s tax burden as the new cabinet steps into office will make it possible to extend the life of brownfields, BP’s Chief Executive Officer Robert Dudley told TASS in an interview.
"I know taxes in Russia are higher than in most countries around the world in oil and gas. I think at some point, to remain competitive, to ease back on that, make sure that investments continue, this is probably a natural thing," the top oil executive explained.
Tax reductions would extend the operation of ageing oil fields in Siberia, Dudley stressed.
"I think you have to balance with the OPEC+ agreement today. To remain competitive, particularly on late oil fields in Siberia, reduction of the tax burden will extend the lives of the fields; and I think that is what we’ve seen with Samotlor, Priobskoe [the largest brownfields in Siberia, tapped in particular by Rosneft — TASS]. And in some new areas which may be more difficult to develop, my recommendation is reduction of taxes but I am not giving advice to the government. I think this is just natural economic," he added.
The tax burden on Russian oil producers is the world’s highest, Energy Minister Alexander Novak noted earlier. Taxes account for 68-70% of revenues, and as much as 85% of revenues for oilfields in Western Siberia, he pointed out.