Three of Russia's oil projects, which all have foreign participation, failed to achieve oil production targets in 2007, Russia's Audit Chamber said Monday.
The state auditor said in a statement that the projects in question were ExxonMobil's Sakhalin-I, Gazprom's Sakhalin-II and Total's Kharyaga, all of which operate under production-sharing agreements.
Russia devised production-sharing agreements _ which offer companies more favorable contract terms _ in the 1990s to lure foreign investment into some of its more difficult and inaccessible oil fields.
Russia, the world's second-largest oil exporter, saw production fall this year as companies struggle under the burden of high oil taxes. Parliament approved a raft of tax breaks for the oil sector last week, starting from next year, after intense lobbying from oil companies.
The Audit Chamber also criticized the Russian government for its lax supervision of the PSAs.
Letters have been sent to Exxon Neftegaz, Sakhalin Energy Investment Company _ Shell ceded control to Gazprom last year, but remains the second-biggest shareholder _ and Total. The auditor has also forwarded details of its claims to the Finance Ministry and the Federal Anti-Monopoly Service.
