11-09-04
The funds raised from sale of Chechen energy resources will be fully contributed to the Chechen economy. Chechnya will restore its oil processing industry and continue the sale of its crude oil, the press service of the Chechen president told.
Negotiations to this effect have been going on with the Russian government. All
the problems connected with a change in the activities of the Chechen oil sector
will be settled in a few weeks' time.
Acting Chechen president Sergei Abramov declared at the previous meeting of the Chechen government that revenues to the Chechen budget would be doubled at the expense of the restoration of the Chechen oil processing industry. Experts believe that inconsiderable financial contributions are needed for that purpose. As soon as this task is resolved more work places will be created in Chechnya, experts said.
At present, Grozneftegas -- an affiliated department of Rosneft, supervises oil
production and oil sale.
Chechen President elect Alu Alkhanov appealed to the Russian leadership, asking that the funds earned from oil sale should be directly channelled to the restoration of the Chechen economy and its social infrastructure.
Chechnya needs broad economic powers so as to overcome the economic crisis in a
short period, Alkhanov said. The oil sector, from which Chechnya gets only 49 %
in revenues yet, is the way to achieve that, Alkhanov said.
President Putin approved the proposal made by the local authorities that all the funds raised from exports of Chechen oil should be contributed to the restoration of the Chechen economy.
"I think that is possible," Putin said at meeting with Alu Alkhanov
and vice-premier of the Chechen government Ramzan Kadyrov.
According to experts’ estimates, annual revenues from oil exports might exceed $ 370 mm provided that the average price per barrel on the world market remains at level of $ 30.
Chechen oil workers have been given the task to increase oil production to 5 mm
tpy. Industrial oil reserves in Chechnya exceed 50 mm tons, while the oil
prospecting potential in Chechnya was estimated at 800 mm tons.
Source: PetroEnergy Information Network