Oil tax breaks could save Tatneft 8 bln rubles

June 27, 2008 MOSCOW -- Tatneft expects to gain 8 billion rubles (about USD 340 million) from differentiating the natural resources extraction tax (NRET) for ageing and complex fields in 2008, Vladlen Voskoboinikov, a member of the Tatarstan-based oil company's executive board, told Interfax.

"We expect gains of 8 billion rubles or slightly more, depending on oil prices," Voskoboinikov said.

Five Tatneft fields which are more than 80%-depleted and which produce more than 16 million tonnes of oil between them each year qualify for the differentiated NRET. Tatneft has been applying differentiated NRET at its Romashkinskoye field since January 1, 2007, and for highly viscous oil produced at the Ashalchinskoye and Mordovo-Karmalskoye fields since April 1, 2007.

The company is also working on implementing the differentiated rate at another four fields.

Tatneft saved around 5 billion rubles from differentiated NRET in 2007, and set some of this aside to extend the commercial life of its oil fields.

© 2008 Interfax Information Services, B.V.