| A streamlined production-sharing law will skyrocket
overseas investment in Russian fuel deposit development, said Glen
Waller, external relations manager of the Russian Exxo Mobil office,
as he was addressing a roundtable of the world Davos economic forum,
which is holding session in Moscow.
The oilfields Russia is working now will be exhausted quite soon,
and to open up new deposits is a must. The effort will take ten
to twelve years and US$10-15 billion before corporate investors
start profiting, warned Mr. Waller. The prospects entitle investors
to firm guarantees--in particular, with the production-sharing law
implemented in oilfield development, he added.
The federal cabinet will regard prospects to approve the taxation
chapter of the production-sharing law at a November 8 session to
pass it for consideration to the State Duma, parliament's lower
house, which is expected to approve it in a second reading next
spring--March or April, said Glen Waller.
As he went over to his company's activities in Russia, the manager
pointed out Sakhalin 1 oilfield development in the Russian Far East,
in which it has invested four billion dollars for today, while infrastructure
construction and other efforts require an approximate overall 12
billion, including the costs of a mainline to be laid from Sakhalin
island to Japan. The works are to start within a few years.
The company intends to join the development of other Sakhalin oilfields
and mineral deposits.
See also:
Production
Sharing Agreements
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