Rosneft (RTS: ROSN) has asked the Russian government to consider lowering the tariffs charged by the transportation monopolies to pre-2007 levels, a source at the company
told Interfax.
The tariffs rose 53% in 2007-2008, Rosneft said in its appeal to the government. Given continuing declines in oil prices, Rosneft proposes that the government consider lowering the tariffs to the January 1, 2007 level, when oil prices were on a par with those today.
The government instruction would be addressed to Transneft (RTS: TRNF), Russian Railways (RZD) (RTS: RZHD), Federal Tariffs Service and other organizations involved in setting transportation tariffs.
Rosneft declined to comment on the report.
An oil industry insider said the big oil companies are in talks to draft a joint letter to the government to lower the tariffs to their level at the beginning of 2007. "That joint letter is still being drafted. It hasn't been signed," the source said.
The oil companies would not comment on the report.
Lukoil (RTS: LKOH) President Vagit Alekperov has said that his company planned to ask the government to lower the tariffs charged by Transneft, Transnefteprodukt and RZD. The move "would allow us to maintain oil production volumes," Alekperov said.
In 2007 the average price for Urals blend was $64.9 per barrel, 13% higher than in 2006, according to Rosneft's quarterly report. In January-September 2008 the average price for Urals was $108 per barrel, 51.8% higher than the price in 2007. The price declined to $97.6 per barrel in September, 25.2% less than in July 2008, when the price peaked at $130.4.
The spot price for Urals crude (c.i.f. Mediterranean ports) on November 17 was at $48.14 per barrel, $1.14 less than the previous day. The price for delivery to ports in Western Europe (Urals c.i.f. Central and Western Europe) was $47.44 per barrel (down $1.09) and Siberian light (c.i.f. Central and Western Europe) was at $50.67 per barrel (down $0.91).