TNK-BP Will Spend $2.7 Billion on Yamal Oil Pipeline System

21.04.2009 — News

YaNAO.

The oil producing company TNK-BP presented the Yamal Oil Pipeline System investment project in Salekhard on 21 April 2009. The 660 kilometre long pipeline will connect the Transneft mainlines to the hard-to-reach oilfields in the Krasnoyarsk Krai (Suzunskoye and Tagulskoye) and in Yamal (Russkoye). The system will be of the strategic importance to the companies developing fields in the Tazovski and Purovski districts of YaNAO and the Taimyr district of the Krasnoyarsk Krai adjacent to the route.

TNK-BP informed RusBusinessNews that the total cost of the Yamal system would amount to about 2.7 billon US dollars. The Russian oil and gas engineering company OAO VNIIST and the American Gulf Interstate Engineering will be the construction contractors. The pipeline will have the annual capacity of more than 19 million tons of oil. The project completion is planned for the end of 2012.

According to Sergey Biryukov, a representative of OAO Tyumenneftegaz (a TNK-BP subsidiary), the suggestions of the YaNAO Government, municipal authorities, and indigenous communities will be taken into consideration in the construction of the pipeline.

The Russian-British company TNK-BP today is the Russia's third largest oil producer. The holding's assets are predominantly located in the West Siberia and in the Volga-Urals region, also there are projects being implemented in the East Siberia.

The Russkoye oilfield is one of the largest TNK-BP assets. According to estimates the quantities of oil there amount to more than 280 million tons (2 billon barrels). At the moment the crude oil is trucked to the Korotchayevo railway station where it is loaded in railway oil tanks and transported further.