An in-person meeting of Transneft’s Board of Directors, chaired by Alexander Novak, Minister of Energy of the Russian Federation, took place on 8 October. The directors reviewed the Company’s performance in the first half of 2018, including Transneft Group’s financial standing and implementation of the Long-Term Development Programme.
In 1H 2018, oil transportation volume amounted to 235.4 million tonnes; as for petroleum products, 19.5 million tonnes were transported. RUB 34.7 billion were spent to finance the Investment Programme, including RUB 28.1 billion invested in the development of oil trunk pipelines system and RUB 6.6 billion allocated for petroleum products pipelines. During the same period, RUB 96 billion was allocated for the Technical Upgrading and Revamping Programme.
The Board of Directors also discussed measures intended to increase the Company’s capitalisation and investment appeal and instructed management to elaborate upon the measures and implement them.
Furthermore, the Board of Directors was informed of the execution of the earlier made decision to increase Transneft’s stake in NCSP to 60.62%. The deal was closed by acquiring 100% of shares of the NovoportHolding joint venture previously owned by Transneft and Summa Group (50% each). NovoportHolding held a 50.1% stake in NCSP. The required sum (USD 750 million) was provided from borrowed funds, which should not increase Transneft’s total debt load.