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Rosneft did not revise the conditions for the implementation of the LNG project in the Far East

A representative of Rosneft said that there were no changes in the timing of the Far Eastern LNG project on Sakhalin, RIA Novosti writes.

Earlier "Reuters " citing sources familiar with the situation, it was reported that Rosneft may have to postpone the launch of a liquefied natural gas plant on Sakhalin for at least two years due to the fall in world energy prices and the imposition of Western sanctions against Russia.

Far East LNG, which Rosneft intends to build jointly with the American ExxonMobil, is expected to be included in the Sakhalin-1 PSA project. Project "Sakhalin-1", implemented on the basis of a production sharing agreement (PSA), includes three oil and gas fields on the northeastern shelf of Sakhalin: Arkutun-Dagi, Chayvo and Odoptu. Potential recoverable reserves amount to 307 million tons of oil and 485 billion cubic meters of gas. The operator of the project Sakhalin-1 is a company Exxon Neftegas, project participants - ExxonMobil (30%), Rosneft (20%), ONGC (20%) and SODECO (30%)

Last week, the American company ExxonMobil filed a lawsuit to the Stockholm Arbitration Court demanding reimbursement of part of the profit tax on the Sakhalin-1 project, which she considers overpaid in recent years. The Ministry of Energy received the corresponding notification.

Counting problem is thatthat when the PSA agreement was signed in the middle of 1990-s, the tax rate on profits in Russia was 35% (Russian tax rate is 13% plus 22% tax on profits in the region). In 2009, in Russia as a whole, the tax is reduced to 20%. The Russian side of the negotiations notes that the terms of the PSA are unchanged for the entire duration of their validity.

The inclusion of Far Eastern LNG in the Sakhalin-1 PSA will allow Rosneft to reduce expenditures on the construction of the plant and infrastructure, since the state will compensate economically justified costs. In the fall of last year, sources reported that the decision to add Far Eastern LNG to Sakhalin-1 could be made in mid-2015.

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