During the meeting, Mr. Tokarev spoke of the Company’s performance in 2017 and its plans for 2018. Last year Transneft pumped 477 million tonnes. “This is about 90% of the total crude production,” added Mr. Tokarev. This year the amount of crude oil to be pumped over the Transneft system is expected to reach the level of 2017 or slightly surpass it.
According to Mr. Tokarev, capital investments of Transneft are expected to total some RUB 256 billion in 2018, of which RUB 200 billion will be invested in the overhaul and revamping of oil pipelines.
During the meeting Prime Minister Medvedev expressed his hope that by 2020 Transneft would reach the planned figure of 97% regarding procurement of domestically made equipment. Head of Transneft Nikolay Tokarev informed him that domestic products already accounted for 93% of all products used by Transneft, as part of the import substitution programme, the remaining 7% being electronics and telecom products. “However, by 2020 we must raise the share of domestic products procured by Transneft to 97%. This is a real and feasible goal, given that we have everything we need, including financing,” said Tokarev.
“This is a good goal; hopefully, it will be achieved,” said Mr. Medvedev.
Mr. Tokarev also reminded that some time earlier Transneft had launched a plant to produce oil pumps in Chelyabinsk, with Prime Minister participating in the opening ceremony. “The plant has already reached the planned capacity and manufactured 240 pumps; in other words, we fully meet the demands of the pipeline industry, and now our neighbors – oil pipeline companies from the near abroad – are interested in these products,” said the Company’s President. He also informed Prime Minister that the construction of a plant to produce electric motors had been completed, noting that the commissioning works were due to begin in May. “So we invite you to launch a second plant in September,” Mr. Tokarev said to Prime Minister Medvedev.
In his turn, Mr. Medvedev described import substitution as a priority. “Import substitution is key to successful economic development, including the sphere of crude oil production, transportation, refining as well as all other hydrocarbon-related services. So the fact that the first plant has already reached its planned capacity and the second plant is being completed is good news; when you are ready to launch the second plant, be sure to report,” Prime Minister concluded.