PSA operator on Sakhalin locks up billions of rubles

The Audit Chamber has found an error in the calculation of royalty on the Sakhalin-2 project: amount owed of 3 billion rubles was transferred by the operator to the budget, and 20 billion rubles will be received as the state revenue before the end of the agreement implementation. Also, investors are in no hurry to transfer technologies and property, created during the implementation of projects, to Russia.

Shareholders of the operator of the Sakhalin-2 project - Sakhalin Energy Investment Company, Ltd. - recognized their obligation to pay the costs of removal of production facilities from operation after the expiry of the PSA implementation, which will allow the state to save significant funds.

Currently, 3 agreements on development of hydrocarbon deposits on basis of a production sharing (Sakhalin-1, Sakhalin-2 and Kharyaga PSA) are realized in the Russian Federation.

During the whole period of the agreements implementation (1995-2013), almost 117 million tons of oil and gas condensate, 92 billion cubic meters of gas were extracted, and about 48 million tons of liquefied gas were produced. In 2013, about 13.9 million tons of oil and gas condensate, and 21 billion cubic meters of gas were produced. The total costs since the beginning of the work amounted to more than $60 billion, $4.6 billion of which are costs of 2013 All expenses that should be reimbursed ($53 billion), were offset by the state with hydrocarbons in full.