Russian oil major OAO Lukoil Holdings (LKOH.RS) has asked the government to exempt new projects in northern Russia and the Caspian, Black and Azov seas from taxes and export duties, the Kommersant daily said Tuesday, citing the company's Chief Executive Vagit Alekperov.
Development of projects in the new production areas should be made more attractive by removing the mineral extraction tax and export duties at least until investment costs are recouped - a period of 10 to 15 years, Alekperov said.
Oil production is falling in Western Siberia, Russia's traditional production area, which was developed in Soviet times.
The government has already waived export duties for crude oil extracted at some fields in Eastern Siberia - where state-controlled OAO Rosneft (ROSN.RS) is active - for a limited period in an attempt to boost investment in the region.
Privately-owned Lukoil is developing two offshore fields - Yuri Korchagan and Filanovsky - in the Caspian Sea.
Alekperov also said the company's adjusted investment program for 2009 totals $8 billion at the current exchange rate - down 20% compared with 2008. Investments have been lowered by between 5% to 7% in upstream projects and by 15% in downstream activity, he said.