the Head of “Rosneft” is also proposed to defer taxes for exploration.
CEO of “Rosneft” Igor Sechin has asked the Russian President Vladimir Putin to adopt a series of measures to support oil and gas business amid pandemic coronavirus and low prices for energy. In particular, Sechin offered to increase the availability of loans for the oil to reduce tariffs for pumping oil and to defer taxes for exploration.
“the Key thing for us, where we desperately need help from the state, is the mitigation banking policy relating to availability of credit, availability of working capital. And this applies not only to us, as you rightly pointed out, but companies and our contractors and our suppliers — said Sechin at a meeting with the President in Novo-Ogaryovo, quote website press service of the Kremlin. — If there was the possibility of increasing the limits on the creditor, it would help to support our investment program.”
“the Key issue for us is the alignment of tariffs of transport monopolies to the current prices in the market. In 2008, for example, the price of oil in rubles was about 1100 rubles, now 1200 is comparable quantities. But before the rate was 822 rubles per ton of bleeding, and today more than two thousand: 2100 rubles,” — he said.
the Oilers “do not ask some special privileges”, but want the authorities took into account the situation with falling oil prices, said Igor Sechin. He added that transport expenses account for 32% of the cost of oil.
In 2020, “Rosneft” can lower investment of 950 billion rubles to 750 billion rubles. “Given the, shall we say, dramatic state of the overall global oil market and in connection with the decisions on the reduction of production we will have, of course, part of the capital cost to optimize. We will try to keep our investment program at the level of approximately 750 billion”, he said.
“Understood. You have written something suggestions?” — asked Putin to Sechin. The head of “Rosneft” said that the proposals are ready. “Okay, okay,” replied the President.
OPEC Ministers+ 12 APR reached final agreement on the reduction of oil production on may-June. Minister of energy of Kuwait Khaled al-Fadel called the agreement a “historic deal”. The evening of 20 April the price of may futures of WTI Texas crude oil and Russian crude Urals fell below zero. The cost of WTI reached an unprecedented level of minus 40 dollars per barrel, Urals fell to minus two dollars per barrel. This drop in prices, the experts explained to the expiry of 21 April duration of contracts for sales of this brand, lack of demand and��almost full storages.