01:25 GMT +305 December 2016
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    DOCUMENTS FOR DEVELOPMENT OF PRIRAZLOMNOYE OIL FIELD ON PSA TERMS ARE BEING DRAFTED

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    MOSCOW, January 29 (RIA Novosti) - Within a month, a package of documents on the development of the Prirazlomnoye oil field on PSA (Production Sharing Agreement) terms will be submitted to the government for consideration, Viktor Khristenko, vice-premier of the Russian government, told journalists today.

    In his words, the government commission for PSA issues has approved the draft agreement on this oil field which is to be finalized within a month.

    The license for the development of the Prirazlomnoye oil field is held by ZAO Sevmorneftegaz set up by subsidiary companies of Gazprom and Rosneft on a parity basis. The development of the oil field is to be started in 2005.

    In the vice-premier's words, the project for the development of the oil field is to be implemented within 25 years. Investments to be made in the project will amount to about 1.4 billion dollars. Projected oil production over the 25-year period is 75 million tons of oil. The state's total revenues from the implementation of the project are expected to reach 3.3 billion dollars.

    Khristenko said that the holder of the license had already spent "several hundred million dollars" on geological prospecting operation and the platform which is under construction now. The vice-premier pointed out that the project initially provided for a larger share of Russian contractors' participation.

    The Prirazlomnoye oil field is situated on the Arctic shelf of the Pechora Sea, some 60 km away from its coast.

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