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Vladimir Putin meets with Transneft President Nikolay Tokarev

Date of publication: 12 September 2016 Printable version


Photo: Russian President’s Press and Information Office

Board Chairman and President of Transneft Nikolay Tokarev informed the Head of State about the Company’s current activities.

V. Putin: Mr. Tokarev, let’s start our discussion with the company’s performance results for nine months of this year and then we may address some specific issues.

N. Tokarev: Mr. President, the company is stable, operating in a businesslike manner: we are up on target to reach all performance indicators planned for this year, as regards our production, finance and economics, new construction, major repairs, revamping, and overhaul of the existing facilities.

We’ve budgeted 349 billion roubles for this year, including 159 billion for new construction and the rest – for major repair and revamping.

Taxes and salaries are paid in due time. Incidentally, the average monthly paycheck in our company is some 75,000 roubles. It’s a bit less in the central regions. Say, the average monthly wage in Bryansk region is 28,000 roubles, while we pay about 38–39 thousand to our workers in this region. In the northern regions, however, the monthly paycheck is like 110–115 thousand roubles.

V. Putin: It’s tougher to work in the North.

N. Tokarev: It is indeed; the climate is very severe, so northern hardship bonuses are applied – that’s why people are paid higher wages there.

I can guarantee that we’ll commission all facilities scheduled for delivery this year. These are our biggest projects which have been implemented during four recent years. Zapolyarye – Purpe, a unique project in its own right, provides access to a new petroliferous province in the North beyond the Polar circle.

Our developers and designers were awarded the state prize from the Russian Government for absolutely unique and innovative engineering solutions used in the construction of this oil pipeline.

These developments are covered by more than 30 international patents. Putting this oil trunk pipeline into operation will largely make up for sinking oil production volumes in Western Siberia. The planned capacity is 45 million tonnes while at the first stage it will be 32 million tonnes. The first batch of crude oil was fed by Lukoil on 01 September. Now we’ll be testing our equipment in the start-up and commissioning mode.

So the problem of filling the pipeline, which we initially perceived as rather challenging, because the field development deadlines were being shifted, has largely been addressed and we now see positive dynamics. So the oil pipeline will be operated quite comfortably.

V. Putin: Which of the new facilities do you consider most important?

N. Tokarev: Zapolyarye – Purpe: we’ve been developing this project for four years and its cost exceeds 200 billion roubles. Towards the end of the year, in December, we plan to commission one more oil trunk pipeline Kuyumba – Taishet which will open access for oilers to a petroleum-rich province and provide an immediate shortcut to the ESPO. We’ve been developing this project for three years and now it is in the start-up mode. This will be a good contribution to ramping up the production volumes and maintaining them at the level planned by the Ministry of Energy.

This year we plan to transport about 482 million tonnes of crude, up 1.5 million tonnes against the last year’s level, including 238 million tonnes for export and 244 million tonnes for domestic refining. Domestically refined crude volumes have grown a little, thanks to the higher capacity of refineries after their overhaul plus a higher premium on this market.

In parallel we are working to increase the capacity of the oil trunk pipeline Eastern Siberia – Pacific Ocean (ESPO), in order to reach the planned target. By 2020 we plan to transport 80 million tonnes of crude oil over ESPO-1 and 50 million tonnes over ESPO-2 from Skovorodino to Kozmino. This is the maximum planned capacity of this project, but reaching this target depends on building ten new pump stations of which four have been already under construction and the rest are at the stage of the environmental survey.

After the said capacity is reached, we’ll fully honour our commitments to the People’s Republic of China and load our refineries in this region. On the whole, this will allow a more intensive build-up of our capacity in Kozmino. Today China takes about 60% or even 67% of crude delivered to Kozmino; Japanese consumers take another 15%, followed by Malaysia and Singapore, by other regional consumers which account for very small volumes like 1.5%.

Today we are working to increase the capacity of Kozmino Port. Now it’s possible to load 150-thousand tankers, which means a higher intensity of our operations there.

As for petroleum products pipelines currently under construction, we are redirecting the oil flows from the Baltic ports of Ventspils and Riga to our Baltic ports Ust-Luga and Primorsk as well as to Novorossiysk, in accordance with the Government’s instructions.

While last year about 9 million tonnes of petroleum products were transshipped in the Baltic region, this year this figure has dropped to 5 million tonnes. In the years to come till 2018 we’ll bring this oil flow to the Baltic region down to zero and will load our ports instead, since we have surplus capacity there.

Refineries can feed up to 32 million tonnes of petroleum products to our petroleum products trunk pipeline and we can redeploy part of the available capacity underfed with crude for transporting petroleum products. We’ll do this in the direction of Primorsk, where we plan to deliver up to 25 million tonnes of diesel, and in the direction of Novorossiysk from the Volgograd refinery by a group of refineries in Krasnodar region.

V. Putin: Good.

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