Benton Oil to Get Tax Break in Russian Venture

Benton Oil & Gas Co., an Oxnard energy concern, said that a new Russian Federation regulation would exempt its joint drilling venture in western Siberia from paying customs duties on the export of oil and gas until costs of the venture are recovered.

Benton had previously expected the joint venture to pay export taxes of $800,000 to $1.5 million per month during its first stage of production in 1993, and more than $10 million per month when the venture reached peak daily production.

The regulation, signed by acting Prime Minister Yegor T. Gaidar and dated July 27, exempts oil and gas joint ventures that are at least 30% owned by foreign interests and were registered before 1992 from paying customs duties before their expenses are recovered.

Benton has a 34% interest in the Geoilbent Ltd. joint venture, which was registered in December, 1991. The joint venture, which has two Russian partners, is developing a field in western Siberia that contains an estimated 300 million barrels of oil and 2 trillion cubic feet of natural gas.