July 13 (Reuters) – Russian private oil major LUKOIL (LKOH.MM) is close to winning tax breaks from the government for developing its Caspian Sea oil fields to allow it to save up to $460 million in taxes in 2011, a newspaper reported on Tuesday.
Business daily RBC Daily quoted industry sources as saying LUKOIL, Russia’s No. 2 oil producer, had reached a preliminary deal with the Finance Ministry that its oil production in the Caspian Sea would have lower export duties.
The system of tax breaks would be similar to the earlier applied scheme for East Siberian fields where producers pay 45 percent of regular export duties when the price of crude exceeds $50 per barrel.
Tax breaks are meant to help producers develop new fields and allow Russia, the world’s largest oil producer, to maintain its output.
LUKOIL spokesman Dmitry Dolgov said tax-break talks continued after the company asked the government to lower taxation for its two key deposits in the Caspian Sea, Korchagina and Filanovskogo. (Reporting by Dmitry Zhdannikov; editing by Sue Thomas)