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12193
Fri, 07/11/2008 - 12:20
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Putin to discuss in Severodvinsk oil & gas industry development
MOSCOW, July 11 (Itar-Tass) - The prices on the world oil and natural gas markets and lowering of the tax burden on oil industry workers will be discussed on Friday at a meeting that Russian Prime Minister Vladimir Putin will hold in Severodvinsk.
Vice Prime Minister Igor Sechin told journalists that a number of ministers are expected to take the floor at the meeting devoted to the development of the national oil and gas sector. A report delivered by the minister of industry and trade will be devoted directly to the developmentof the sector.
"Economic Development Minister Elvira Nabiullina will report on measures of support in the development of continental shelf and economic stimulating measures for increasing production," the official said. In the words of Sechin, Minister of Natural Resources Yuri Trutnev will report on the reproduction of reserves and Viktor Khristenko - on the development of the machine buildings complex in the interests of the oiland gas industry.
According to the vice prime minister, the meeting with the participation of representatives of the sector will focus on discussing the situation regarding world energy resources prices, development of exchange trade in petroleum products, as well as the improvement oflegislation.
In addition, he said, the meeting participants will discuss measures to stimulate offshore production. "There have been talks on tax holidays for offshore fields," according to Sechin. He noted that these proposals are currently being coordinated by the departments concerned. He did not rule out that the holidays may be applied not only to the offshore projects, but also to "other areas of remote production."The meeting will also dwell on reducing the administrative barriers.
"There are excessive administrative barriers about which we will talk," the vice prime minister pointed out. According to him, the point at issue is "difficulty in issuing licenses." "Even after getting licenses for a natural field it takes one or two years to get additional licenses,"Sechin complained.
The vice prime minister said that the government is considering ways of lowering aviation fuel prices. According to him, first of all it is necessary to develop competition in this sector. Sechin did not rule out that several fuelling complexes competing with each other may appear soonin each of several aviation hubs.
The state also can invest in the oil processing sphere, the official is certain. "We are currently scrutinising with the development institutions the possibility of building a normal, good plant forprocessing of oil recovered by independent producers," said Sechin.
According to preliminary assessments of Sechin, the cost of the construction of such oil refinery with a capacity of some 12 milliontonnes of oil products may reach eight billion US dollars.
On the whole the insufficiency of the oil refining level will also become the discussion subject. "It is one of the problems the solution of which requires efforts both by the state and market participants that are working in this sector," Sechin noted. According to him, the "average processing depth in 2007 reached 71.75 percent and in 2006 - 72 percent." Sechin pointed out that in developed Western countries this indicatorreaches 85-95 percent.
Russian oil refineries last year produced over 35 million tonnes of automobile petrol, 66.4 million tonnes of diesel fuel (3.4 percent) and 62.4 million tonnes of fuel oil (5.2 percent). "The average rate of loading of oil refineries accounted for about 80 percent, and over 50percent of oil recovered in Russia was exported," the official indicated.
"There is also an issue related to differences of sectoral programmes," said the vice prime minister. He explained that there are considerable differences between the already adopted programmes (the general plan of the placement of electric power facilities and programme of the gas industry development). "There is a problem regarding the access of independent oil producers to intra-field pipelines," he stated. He also noted that "there are no major problems at present with the entry in main pipelines, this problem has been settled on the whole." According to Sechin, over 490 million tonnes of oil and gas condensate were recovered in Russia in 2007, which is a 2.1-percent increase compared with 2006. "In the first quarter of 2008 there is a certain lowering of the production volumes by 0.3 percent, but we hope that the decline will not be considerable," he stated. Sechin expressed confidence that on the whole by the results of the year "we should maintain the production level." The meeting participants will voice a number of tax stimuli for the industry. "They have already been voiced and discussed," the official added. At the same time the vice prime minister noted that "you will also see certain novelties."
Vice Prime Minister Igor Sechin told journalists that a number of ministers are expected to take the floor at the meeting devoted to the development of the national oil and gas sector. A report delivered by the minister of industry and trade will be devoted directly to the developmentof the sector.
"Economic Development Minister Elvira Nabiullina will report on measures of support in the development of continental shelf and economic stimulating measures for increasing production," the official said. In the words of Sechin, Minister of Natural Resources Yuri Trutnev will report on the reproduction of reserves and Viktor Khristenko - on the development of the machine buildings complex in the interests of the oiland gas industry.
According to the vice prime minister, the meeting with the participation of representatives of the sector will focus on discussing the situation regarding world energy resources prices, development of exchange trade in petroleum products, as well as the improvement oflegislation.
In addition, he said, the meeting participants will discuss measures to stimulate offshore production. "There have been talks on tax holidays for offshore fields," according to Sechin. He noted that these proposals are currently being coordinated by the departments concerned. He did not rule out that the holidays may be applied not only to the offshore projects, but also to "other areas of remote production."The meeting will also dwell on reducing the administrative barriers.
"There are excessive administrative barriers about which we will talk," the vice prime minister pointed out. According to him, the point at issue is "difficulty in issuing licenses." "Even after getting licenses for a natural field it takes one or two years to get additional licenses,"Sechin complained.
The vice prime minister said that the government is considering ways of lowering aviation fuel prices. According to him, first of all it is necessary to develop competition in this sector. Sechin did not rule out that several fuelling complexes competing with each other may appear soonin each of several aviation hubs.
The state also can invest in the oil processing sphere, the official is certain. "We are currently scrutinising with the development institutions the possibility of building a normal, good plant forprocessing of oil recovered by independent producers," said Sechin.
According to preliminary assessments of Sechin, the cost of the construction of such oil refinery with a capacity of some 12 milliontonnes of oil products may reach eight billion US dollars.
On the whole the insufficiency of the oil refining level will also become the discussion subject. "It is one of the problems the solution of which requires efforts both by the state and market participants that are working in this sector," Sechin noted. According to him, the "average processing depth in 2007 reached 71.75 percent and in 2006 - 72 percent." Sechin pointed out that in developed Western countries this indicatorreaches 85-95 percent.
Russian oil refineries last year produced over 35 million tonnes of automobile petrol, 66.4 million tonnes of diesel fuel (3.4 percent) and 62.4 million tonnes of fuel oil (5.2 percent). "The average rate of loading of oil refineries accounted for about 80 percent, and over 50percent of oil recovered in Russia was exported," the official indicated.
"There is also an issue related to differences of sectoral programmes," said the vice prime minister. He explained that there are considerable differences between the already adopted programmes (the general plan of the placement of electric power facilities and programme of the gas industry development). "There is a problem regarding the access of independent oil producers to intra-field pipelines," he stated. He also noted that "there are no major problems at present with the entry in main pipelines, this problem has been settled on the whole." According to Sechin, over 490 million tonnes of oil and gas condensate were recovered in Russia in 2007, which is a 2.1-percent increase compared with 2006. "In the first quarter of 2008 there is a certain lowering of the production volumes by 0.3 percent, but we hope that the decline will not be considerable," he stated. Sechin expressed confidence that on the whole by the results of the year "we should maintain the production level." The meeting participants will voice a number of tax stimuli for the industry. "They have already been voiced and discussed," the official added. At the same time the vice prime minister noted that "you will also see certain novelties."