Pipeliners

27.04.2006 13:01 - [Neftegaz.ru] - Russia's oil transport company Transneft failed yesterday to chair Caspian Pipeline Consortium (CPC). The CPC holders elected Vladimir Razdukhov, vice president of Zarubezhneft, as the CPC general director. State oil firm Rosneft's Yevgeny Popov was elected his deputy for legal issues. Moreover, the project of CPC extension, which is of no interest to Transneft, will be implemented under control of its opponents in the government, Rosneft and Zarubezhneft. The 1580km pipeline of CPC connects the fields of western Kazakhstan with Russia’s coast of the Black Sea. The shipment reached 30.5 million tons in 2005. CPC holders are Russia’s Property Ministry (24 percent), Kazakhstan (19 percent), Sultanate of Oman (7 percent), Chevron Caspian Pipeline Consortium Co. (15 percent), LUKARCO B. V. (venture of LUKOIL and BP; 12.5 percent), Rosneft-Shell Caspian Ventures Ltd. (7.5 percent), Mobil Caspian Pipeline Company (ExxonMobil; 7.5 percent), Agip International N. V. (Eni; 2 percent), BG Overseas Holding Ltd. (2 percent), Kazakhstan Pipeline Ventures LLC (1.75 percent) and Oryx Caspian Pipeline LLC (1.75 percent). Transneft Vice President Konstantin Lysyany had been tipped a frontrunner for the GD office at CPC till March. He was crossed out in the wake of the brawl of Transneft and Rosenergo with Rosneft traders concerning oil shipment to Mazeikiu nafta. Putting forward another candidate, Zagid Saidov, who is standing for ExxonMobile in CPC, didn't help Transneft to win control over CPC.

24.04.2006 12:07 - [Neftegaz.ru] - Russia's planned oil pipeline to Asia will help cut deliveries to Europe, which is currently being oversupplied with Russian crude, Transneft's head Semen Veinschtok said."So far we cannot reduce supplies as all our exports are going to Europe. But as soon as we divert (flows) to China, South Korea, Australia, Japan it will immediately take away crude from our European colleagues," he added.Veinschtok has repeatedly said that the pipeline would help diversify Russian oil flows and cut discounts on the country's mainstay Urals crude blend in European markets.Veinschtok said Transneft planned to use a shipping fee of $38 per tonne of crude oil on the Asian-Pacific pipeline route to make it competitive with current fees paid on the route to the Black Sea port of Novorossiisk.The $11.5-billion pipeline will ship 600,000 barrels per day at the first stage, mainly to China, with supplies rising to 1.6 million bpd at the second stage, when a big terminal is build on the Russian Pacific coast.

26.04.2006 - IntelliNews Today - According to oil transportation monopoly Transneft's head Semion Vainshtok, the first stage of the crude oil transporting pipeline linking Russia and Asian markets will be ready by 2008. The construction works are set to start within a couple of days in Taishet, west of Baikal lake, and will be finished in Skovorodino (some 2,000 km to the east), near the Chinese border. The second phase of the project envisages completing the oil pipeline's trunk eastward to the Pacific coast. The companies engaged in the project are to decide on the pipeline’s ultimate direction. It is estimated that the project's cost will amount to some USD 6.5bn. The planned pipeline’s length is around 4,000 km.

MOSCOW, April 25 (RIA Novosti) - Transneft, Russia's pipeline monopoly, said Tuesday that U.S. oil giant Chevron and Kazakhstan's KazMunaiGaz had shown interest in a project to build an oil pipeline in the Balkans. Transneft head Semyon Vainshtok said the company did not plan to invest in the 783-million-euro pipeline from the Greek Mediterranean port of Alexandropoulis to Bulgaria's Black Sea port of Burgas. "Today, Transneft is involved in the project as observer," Vainshtok said, adding that the company's expertise in logistics and as operator could be of use for the pipeline, which will run for 280 kilometers (about 180 miles). Its planned capacity stands at 35 million metric tons per year (704,800 bbl/d) and up to 50 million tons per year (1.01 mln bbl/d) tons in the future.

MOSCOW, April 25 (RIA Novosti) - Rosneft will send more than 100 million barrels of crude from East Siberia via a pipeline to be constructed in the country's Far East, the state-owned oil company's vice president said Tuesday. "We are waiting for the oil pipeline [to come into being], and intend to use it for supplying crude to foreign markets and to a refinery on the Amur River," Alexander Sapronov said. At the moment, oil from Siberia can only be delivered to the Pacific Coast by rail. The Vankorsk oilfield, in Siberia's Krasnoyarsk Territory, has an estimated 2,920 million barrels in proven reserves. Production is to start here in 2010, with the annual output expected at 140 million barrels. The deposit is being developed by a Rosneft subsidiary, Vankorneft. The new pipeline will pump Siberian crude to countries of the Asia-Pacific Rim, particularly energy-hungry China. Pipeline operator Transneft said it would announce the winner of a contract for the $11.5bln project later on Tuesday.

24.04.2006 12:07 [Neftegaz.ru] - Russia's planned oil pipeline to Asia will help cut deliveries to Europe, which is currently being oversupplied with Russian crude, Transneft's head Semen Veinschtok said."So far we cannot reduce supplies as all our exports are going to Europe. But as soon as we divert (flows) to China, South Korea, Australia, Japan it will immediately take away crude from our European colleagues," he added.Veinschtok has repeatedly said that the pipeline would help diversify Russian oil flows and cut discounts on the country's mainstay Urals crude blend in European markets.Veinschtok said Transneft planned to use a shipping fee of $38 per tonne of crude oil on the Asian-Pacific pipeline route to make it competitive with current fees paid on the route to the Black Sea port of Novorossiisk.The $11.5-billion pipeline will ship 600,000 barrels per day at the first stage, mainly to China, with supplies rising to 1.6 million bpd at the second stage, when a big terminal is build on the Russian Pacific coast.

Apr. 18, 2006 The Kommersant - Transneft launches construction of Eastern Siberia-Pacific Ocean Oil Pipeline this month, Russia's Industry and Energy Minister Viktor Khristenko announced yesterday, specifying the first stage of the project calls for loans worth 200 billion rubles overall. Construction of the oil pipeline begins in April, Khristenko said at the yesterday's sitting of his ministry with the board of Russia's Union of Industrialists and Entrepreneurs. Propelled by President Vladimir Putin, the project is launched despite a raft of protests of nature protection organizations, emphasizing its obvious threat to Baikal Lake and environment. The first stage of the Eastern Siberia-Pacific Ocean Oil Pipeline, which feasibility study was OKed by the state experts in early April, provides for laying 2400km pipeline from Taishet (the Irkutsk region) to Skovorodino (the Altai district) and constructing a terminal in the Primorie region. Khristenko said the talks are underway both with Russia's and foreign creditors to raise money for the first stage of the project. The overall amount will reach 200 billion rubles, the minister pointed out and specified that the pipeline won't have a sole creditor. The first loan will be raised with Sberbank, Transneft Vice President Sergey Grigoriev named the first bank, which will fund construction.

17.04.2006 10:09 [Neftegaz.ru] - China and Kazakhstan are in talks about constructing the second oil pipeline to link the two countries. Kazakh Foreign Minister Kasymzhomart Tokaev and Chinese Premier Wen Jiabao are negotiating now in Beijing. The construction of the first oil pipeline that links Atasu in central Kazakhstan to Alashenkou in western China without crossing Russian territory was completed in 2005. However, the pipeline is unlikely to meet all energy requirements of China and the country needs one more pipeline now. Constructing the second pipeline was in the center of attention at the yesterday’s talks of Tokaev, the sources specified. It is not the matter of some public agreements yet, but the parties have reached understanding to promote promising projects, including construction of a gas pipeline, heat power plant and super high-voltage power lines.

MOSCOW, April 17 (RIA Novosti) - The first credit tranche for construction of an oil pipeline running from East Siberia to the Pacific Ocean will be worth $7.22 billion, the industry and energy minister said Monday. Viktor Khristenko said the board of directors of state-owned pipeline monopoly Transneft were working on the credit, and added that investments would come from Russian as well as foreign creditors. "The markets will be different, to make it cheaper and minimize credit risks," Khristenkko said, adding that construction of the pipeline would start before the end of April. The pipeline is expected to pump up to 80 million metric tons a year (1.6 mln of bbl/d) from Siberia to the Russian Far East before being sent on to the Asia-Pacific region, in particular to energy-hungry China. The first stage of construction was initially expected to be completed by the end of 2008. The pipeline has run into controversy, though, particularly over a stretch projected to run less than 800 meters from Lake Baikal, the world's largest body of fresh water and a Unesco World Heritage Site. Environmental groups have said that Baikal's delicate ecosystem could face massive damage in case of oil leakages or accidents on the pipeline.