Total, Statoil Call For Urgent Clarity On Shtokman TaxWednesday, 09 November 2011
French energy major Total SA (TOT) and Norway'sStatoil Asa (STO) Wednesday said there is an urgent need to get clarity on a tax regime for the Shtokman offshore natural gas field in the Barents Sea, in order to meet a deadline for a final investment decision by the end of the year.
"Urgent action is needed to resolve these critical issues, otherwise the future of the project is jeopardized," Tim Dodson, Statoil executive vice president for exploration and production, said at the Global Energy Intelligence day here according to Dowjones News
AdvertisementThe Russian government has still to grant tax breaks for Shtokman, which has OAO Gazprom (GAZP.RS) as controlling shareholder and Total and Statoil as minority shareholders.
"We hear lots of good things from the government. Well, we're ready to get the message not only in words, but in facts," Total Chief Executive Christophe de Margerie said.
The project has been delayed on two occasions. Shareholders are due to make a final investment decision by the end of the year.
"In order to make the project economical viable and to move it forward, improved fiscal terms and fair and reasonable commercial terms for use of infrastructure by the foreign partners are required," Dodson said.
Russian officials have said Shtokman shareholders have still to submit the necessary documentation in order to grant them tax breaks.
"If not, we will have to do it," de Margerie said when asked about submitting needed documentation. "We need now to move quickly."
News source: Dow Jones News
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