Executives at Russian oil giant LUKOIL are hoping to see their government institute a zero-rate duty on the export of crude produced in the Caspian Sea, LUKOIL Vice-President Leonid Fedun said in an interview.
"Without state assistance, developing oil fields on the marine shelf is a very unprofitable business for any company", he said.Â
Fedun said the new oil producing infrastructure needs to be established in the region. He added that the need for investments in new fields is in part due to the face fields in West Siberia are becoming naturally depleted.
Earlier, Fedun told journalists that without a zero-rate duty on crude exports from East Siberia, LUKOIL would only develop two fields in the near term - the Korchaginskoye and Filanovskoye fields, Gazeta.ru reports.
Oil & Gas Eurasia
oilandgaseurasia.comÂ