Bloomberg News

Rosneft Surges Most in Month on Sechin Tax Request

September 16, 2010

OAO Rosneft, Russia’s largest oil producer, gained the most in more than a month after a report in Vedomosti said Chairman Igor Sechin asked Prime Minister Vladimir Putin to extend tax breaks that may be worth $8 billion.

The stock climbed 2.6 percent to 205.39 rubles at the 6:45 p.m. close of Moscow trading, its biggest gain since August 2.

State-run Rosneft wants tax concessions on its Vankor field in Siberia, which came online last year, because of higher-than- expected costs, the Moscow-based newspaper said. Rosneft invested about $7.5 billion in the project in 2003-2009 and plans to spend another $2.6 billion this year, Vedomosti said.

“In addition, Sechin asked Putin to provide similar relief for Yurubcheno-Tokhomskoye, Rosneft’s largest undeveloped field located in Eastern Siberia,” wrote Luis Saenz, a London-based director of international sales at brokerage Otkritie Securities Ltd., in an e-mailed note.

To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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