Kommersant reports the key reason was the high export duty that stripped the business off any profits to the companies. The output went down as well, as the companies lack funds to invest in production
According to official statistics, the exports via Transneft pipelines lowered by 17.6 percent on year to 13.128 million tons in November. The output fell 0.3 percent from 40.3 million tons to 40.2 million tons. The production slid 0.5 percent from early this year, having shed form 449.7 million tons posted over 11 months of 2007 to 447.36 million tons produced in January through November of 2008.
As to the shedding oil exports, the skyrocketing duties on exports of oil and petroleum are said to be the key reason. “The government’s ruling on introducing a new lowered duty from December 1 hasn’t taken effect yet. In November, we were losing over $40 from each exported ton,” people in LUKOIL said.
The duty on oil exports was set at $372.2 a ton from October 1 to December 1. With the severance tax rate of $135 per a ton, the companies were paying to government $69.4 for each exported barrel in time when the world prices slumped to $66.65 a barrel.
The oilmen will deliberate on the bailout strategy at today’s meeting with Vice Premiers Igor Sechin and Igor Shuvalov. The drop in production coupled with the export decline could be viewed as additional argument for easing the fiscal burden. At the same time, the extent of the slump was lower than forecasts of the oilmen.
Author:
Ksenia Kochneva
