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BUSINESS & FINANCE
The Mir Diamond Pipe in the direct vicinity of Mirny City
Transneft to construct the pipeline according to this scheme

ESiberia-Pacific Ocean
Pipeline Construction

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ESiberia-Pacific Ocean (ESPO)
Transneft plans to construct the longest oil pipeline from East Siberia to the Pacific Coast, which is to deliver crude to Japan, China, South Korea and other Asian and Pacific Rim countries.

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Mar. 3, 2008
New ESPO pipeline route approved

MOSCOW (RIA Novosti) - The Russian government has approved a new route bypassing Lake Baikal for an oil pipeline from East Siberia to the Pacific, a Cabinet spokesman said on Monday.

The East Siberia-Pacific Ocean (ESPO) pipeline project is slated to pump up to 1.6 million barrels of crude per day from Siberia to Russia's Far East and then on to China and the Asia-Pacific region.

The initial route through Buryatia in East Siberia has been replaced with a more northern one going via Yakutia. The pipeline's destination originally planned for Perevoznaya Bay in the Russian Far East will now be Kozmino Bay near the port of Nakhodka, Russia's easternmost point. Prime Minister Viktor Zubkov signed an instruction last Wednesday.

Nikolai Tokarev, president of project operator Transneft, read out a new declaration on the project in Vladivostok last Wednesday. He said the pipeline's first leg, estimated at $11 billion, would be finished in late 2009, though a government decision demands it be commissioned in 2008.

Tokarev said earlier that the pipeline could not be sped up as this would push up the costs considerably.

"The project has been accelerated to a maximum. It could be expedited further, if new credit facilities were raised. But this measure would push up the company's costs considerably compared with the planned $12 billion figure," Vedomosti quoted Tokarev as saying.

The ESPO first stage envisages the construction of a 2,757-kilometer (1,713-mile) section with a capacity of 30 million tons (220.5 million bbl) of oil per year. The project's first leg will link Taishet, in East Siberia's Irkutsk Region, to Skovorodino, in the Amur Region, in Russia's Far East.

The second leg will stretch for 2,100 kilometers (1,304 miles) from Skovorodino to the Pacific. It will pump 367.5 million barrels of oil annually. The second stage also envisages an increase in the Taishet-Skovorodino pipeline's capacity to 588 million barrels.

Resource: RIA Novosti

 

Dec. 4, 2007
Siberian oil pipe construction could be delayed for six months

MOSCOW, December 4 (RIA Novosti) - The construction of the East Siberia-Pacific Ocean oil pipeline managed by state-run pipeline operator Transneft could be delayed for six months, the president of the Republic of Yakutia said on Tuesday.

The ambitious East Siberia-Pacific Ocean (ESPO) oil pipeline is slated to pump up to 1.6 million barrels per day of crude from Siberia to Russia's Far East and then on to China and the Asia-Pacific region. The project's first leg, estimated at $11 billion, was expected to be commissioned in December 2008.

"Doubts have emerged lately about the timeframe for the project's implementation but this is a realistic task and the maximum delay could be six months," Vyacheslav Shtyrov said.

The Yakutian president said the problems with the timeframe were related to contractors, as Russia was currently building several major pipelines and was experiencing a shortage of qualified personnel.

"I believe there are no grounds for changing the timeframe, although there are some subjective reasons, including the new management of Transneft. At the same time, the project has got a good start and it is necessary to comply with the timeframe," Shtyrov said.

In the first stage, a 2,757-kilometer (1,713-mile) section will be built with a capacity of 30 million tons (220.5 million bbl) of oil per year. The project's first leg will link Taishet, in East Siberia's Irkutsk Region, to Skovorodino, in the Amur Region, in Russia's Far East.

The second leg will stretch for 2,100 kilometers (1,304 miles) from Skovorodino to the Pacific. It will pump 367.5 million barrels of oil annually. The second stage also envisages an increase in the Taishet-Skovorodino pipeline's capacity to 588 million barrels.

Resource: RIA Novosti

 

May 7, 2007
The Chinese to build oil pipeline in Siberia

Transneft is going to attract 1200 Chinese employees for construction works. This decision was taken negatively by the citizens of Yakutia (the pipeline is going across the territory of this Russian republic), as unemployment ratio in the republic makes up 9.5%. The company guarantees employment assistance to 200 natives.

At the end of 2004 Russian Prime minister signed a decree on projection and construction of the unique oil pipeline system with the total length of over 4 thousand km aimed at selling Russian oil to the countries of the Pacific Region. The half of the pipeline is due to go along the Russian-Chinese border.

Resource: Rosbaltnord.ru

 

April 23, 2007
Emergency regime over hepatitis A virus

An emergency regime has been introduced in the Neryungri district of Russia’s Yakutia republic over an outbreak of common-source hepatitis among construction workers of a section of the Eastern oil pipeline, the republican department of the Emergency Situations Ministry told Itar-Tass on Monday.

A total of 35 people have been taken to the infectious disease ward of the Neryungri town’s hospital. The common-source hepatitis diagnosis has been confirmed in 19 of the patients. According to medics, the probable infection source was a kitchen unit of the third workers section based near the Nagorny settlement.

Epidemiologists, immunologists and other medics worked in the Nagorny and neighbouring Chulmansky sections of the pipeline construction on Saturday and Sunday. They took hundreds of blood samples for testing. Violations of sanitary norms have been exposed in the kitchens, such as improper storage of food products, the absence of disinfectants. Not all workers of the catering service have medical records and not all have passed medical examination.

Additional preventive measures have been taken in the Neryungri district on the decision of the district administration head, residents of settlements have been warned about the danger of the infection; contacts of the local population with the construction workers have been restricted. Medics say in this connection that hepatitis symptom are coming not very quickly – the incubation period after hepatitis virus contagion can last one or two months depending on individual immune resistance.

Resource: ITAR-TASS

 

April 11, 2007
Russia warns of delay of oil pipeline to Asian-Pacific region

MOSCOW, April 10 (Xinhua) -- A Russian official on Tuesday warned that the building of the country's longest oil pipeline from Eastern Siberia to the Asian-Pacific region may be suspended, the Interfax news agency reported.

The second phase of the Eastern Siberia-Pacific Ocean (ESPO) pipeline may be put off by three or four years due to lack of reserves, the Interfax said, citing Sergei Fedorov, director of the Natural Resource Ministry's state geological policy department.

"Due to a delay in reserves growth, the building of the second phase of the pipeline, which means, an expansion to 80 million tons of oil per year, may be postponed by three to four years," he said.

The ESPO pipeline will run from Taishet in Eastern Siberia to Nakhodka near the Sea of Japan along a 4,000 kilometers route, to give Russia access to countries of the Asian-Pacific region. Its annual capacity will be 80 million tons.

Oil will be exported from a port near Nakhodka to Japan, South Korea and other countries. Meanwhile, an extension of the pipeline will be built from Skovorodino to China.

However, the currently two recoverable oil fields in Eastern Siberia recorded a reserve of 700 million tons and can only feed the pipeline 30 million tons of oil per year, Fedorov said.

The first phase of the project, which kicked off last April and some 800 kilometers pipeline have been laid, bears a capacity of 30 million tons of oil from Taishet to Skovorodino. It was expected to be completed in late 2008.

Initially the first phase pipeline will pump crude from West Siberia along the existing Omsk-Irkutsk pipeline that will join the new project in Taishet. In future hydrocarbons from East Siberia and Yakutia will be added.

Fedorov called for more budget to explore oil in Eastern Siberia, which were estimated at one billion rubles (about 38.5 million U.S. dollars) per year.

The project operator Transneft has planned to spend 198.7 billion rubles for the ESPO construction in 2007, which is some 130 percent more than that in 2006. Some 1,250 kilometers of the pipeline were expected to be laid in 2007, the Interfax reported.

Transneft Vice President Sergei Grigoriev said that the company has no concrete timetable for the second phase.

"A decision on the start of construction of the second phase, which should be made by the government, will depend on the pace of development in Eastern Siberia," he said.

Resource: Xinhua

 

April 11, 2007
E Siberia-Pacific pipeline construction goes as scheduled - CEO

NOVOSIBIRSK. The construction of the Eastern Siberia – Pacific oil pipeline is proceeding according to schedule, Transneft Vice President Igor Solyarsky said on Wednesday.

“Builders lay five kilometres of the pipeline a day. They have already completed the 861st kilometre,” Solyarsky said.

He believes that the first 2,700-kilometre section of the pipeline from Taishet to Skovorodino will be commissioned in December 2008.

The estimated capacity of the first section is 30 million tonnes a year. “Transneft has guarantees for 100 percent filling of the pipeline at the this stage,” Solyarsky said.

In his words, oil for the pipeline will be supplied from the Tomsk, Tyumen, Omsk, and Novosibirsk regions with the Irkutsk region, Krasnoyarsk Territory, and Yakutia joining in subsequently.

“The implementation of the project will become an unprecedented event in the world practice of pipeline construction,” the official said.

The construction of the pipeline began in April 2006. Upon completion in the port of Kozmino, Primosrky Territory, the pipeline's capacity will increase to 80 million tonnes a year.

The approximate cost of the work is 400 billion roubles. The pipeline will supply hydrocarbons to the Asia Pacific region.

The project was conceived in accordance with Russia's energy strategy of up to 2020.

Resource: ITAR-TASS

 

Feb. 6, 2007
Public hearings pass in Yakutia on East Siberia-Pacific pipeline

YAKUTSK, February 6 (Itar-Tass) - The Yakutia city of Lensk was the venue on Tuesday for public hearings on the construction project of the East Siberia-Pacific oil pipeline (VSTO). Its total length will be over 4,000 kilometers. Out of the total, 72 kilometers of the pipeline will run across the territory of the Lensk district.

Assistant to the administration head of the Lensk district Mikhail Komarov said that residents of the district backed the construction project on the whole, but expressed proposals on utmost protection of environment to the Transneft Company, laying down the VSTO.

In the meantime, acting Industry Minister of the Yakutia Republic Alexei Struchkov noted that the future pipeline does not present any real threat to the local environment, which is corroborated by experience of building such projects. A total of 1,632 kilometers of the pipeline will run across all Yakutia, and around 12,000 people will be involved in its construction in the republic. The East Siberia-Pacific oil pipeline will help to develop oil and gas deposits discovered in Yakutia and to establish a powerful oil-producing industry, Struchkov emphasized.

The construction of the oil pipeline is conducted simultaneously in two places in Yakutia. The pipeline is being laid down between Ust-Kut and Talakan as well as between Tynda and Aldan. The Talakan deposit will yield annually one million tonnes of oil after 2008 when the pipeline is put into operation. Later, its annual production will increase to seven million tonnes.

The East Siberia-Pacific pipeline is designed to deliver annually 80 million tonnes of Siberian oil to China and Asia-Pacific countries.

Resource: ITAR-TASS

 

Jan. 25, 2007
First km of pipes laid in Eastern Oil Pipeline skirting Baikal

IRKUTSK, January 25 (Itar-Tass) - The first 1.2 kilometres of pipes have been laid in the advance section of the Eastern Oil Pipeline (EOP) circumventing Lake Baikal, an official at the Eastern Siberia-Pacific Ocean project control center told Itar-Tass on Thursday.

The pipeline's advance section to run from the town of Ust-Kut in Irkutsk Region's north to the Talakan oil and gas field in Yakutia's west is 535 km. A favourable expert conclusion about the project's feasibility study and cost analysts was received from the Directorate-General for State Environmental Review (Glavgosekspertiza) at the end of 2006. By now a whole series of preparatory measures have been taken there with regard to transportation routes to deliver materials and equipment and the siting of production facilities and building camps.

More than 200 kilometres of pipes have been delivered to the pipeline construction site. A two-branch ice-surfaced crossing across Lena River has been built to carry pipes to places where they will be laid, with more than 50 special heavy-duty machinery vehicles involved.

Until now, the EOP was under construction in two areas: from Taishet to Ust-Kut in Irkutsk Region, and from Tynda to Skovorodino in Amur Region. Five hundred and thirty kilometres of pipes have already been welded together and 527 km of pipes have been laid. The overall length of the first section of the EOP is about 2,800 km. It is slated to go on stream at the end of 2008.

The Eastern Siberia-Pacific Ocean pipeline transportation system is being built to deliver Russia's hydrocarbon fuel to China, Japan, and other Pacific Rim countries. The system's full rated capacity will be 80 million tonnes of fuel a year and a tentative cost of operations will be about 400,000 million roubles.

Resource: ITAR-TASS

 

Jan. 14, 2007
Yakutia receiving pipes, equipment for Siberia-Pacific pipeline

Trainloads with piping, equipment, constructions and materials to build an Eastern Siberia-Pacific oil pipeline started coming to Yakutia. The republican government told Itar-Tass on Sunday that over 300 wagons were unloaded at the Neryungri and Nagornaya rail stations. The flow of cargoes is on the rise.

A total of 1,363 kilometers of the pipeline is to be laid down across Yakutia. As many as 12,000 people, including 5,000 workers from Yakutia, will be engaged in construction of the trunk pipeline.

In the past, ecological organizations heard reports by executives of the pipeline project, the Transneft Company and other structures concerning ecology and security of operation of facilities of the future pipeline system. Designers provided for the use of piping with factory-made insulation, three-time safety margin at ordinary sections and five-time safety margin at underwater sections of the trunk pipeline.

A system of automatic recording of leakages guarantees detection of ruptures and stealing of oil at early stages. Designers examined questions of rapid deliveries of people and equipment to any point of the pipeline in case of emergencies, while rapid response groups will be based near pumping stations.

In 2006, around 530 kilometers of the pipeline were already laid down at the Taishet-Ust-Kut sections in the Irkutsk Region as well as the Tynda-Skovorodino section in the Amur Region. In 2007, work will be continued in those areas and started in Yakutia as well as at the special sea terminal Kozmino in the Primorye Territory.

The total length of the pipeline will be 2,800 kilometers. The first stage of the pipeline presupposes commissioning of the pipeline between Taishet and Skovorodino with an annual throughput capacity of 30 million tonnes.

Resource: ITAR-TASS

 

Dec. 28, 2006
530 km of pipe has been laid

Under 2006 results, nearly 530 km of East-Siberia- Pacific Ocean pipeline has been line-welded at “Taishet-Ust Kut” (Irkutsk region) and “Tynda-Skovorodino” ( Amur region) sections. All construction operations keep in line with terms set by the Government of Russia and schedules approved by Transneft's top management.

“Along with the main construction of the linear part of oil pipeline the company paid great attention to the backlog for the future works: storage sites were prepared, production basis were organized, transport delivery schemes were developed” Anatoliy Bezverkhov, Director General of “PCM ESPO” gave a comment. “ Therefore we can quickly proceed to construction works on sites which feasibility studies have been developed and approved this year for”.

Works on all ESPO's objects including not only linear part, but oil pumping stations and special sea port of Kozmino in Primorsk region as well lie ahead before pipe layers during 2007.

Positive decision of a commission of Glavgosexpertiza's experts for the Feasibilit Study of “Ust-Kut – Talakanskoe oilfield” had already obtained. Finishing of examination of Feasibility Study for “ Tynda- Aldan” and the port of Kozmino is expected early in 2007.

Resource: Transneft Press Centre

 

Aug. 23, 2006
People for in-depth analysis

On August 22, 2006 in Yakutsk public consultation began to consider the environment impact assessment of the Tynda-Aldan as part of the feasibility study of the Eastern Siberia - Pacific pipeline project.

Participants expressed their opinion, namely critics and proposals. Apparently republic community is worry about the short-term realization of the project and insists upon early stated requirements.

Vladimir Shepelev, deputy director of Yakutsk Permafrost Institute, noted that the insufficient study of permafrost factors is conducted in the environment impact assessment of the ESPO Pipeline in the course of its construction and exploitation. Once again he laid emphasis on the necessity of applying in-depth analysis prior to the implementation of a large-scale project.

Written by Tatiana Simakova
Translated by YakutiaToday.Com

Resource: Yakutia-Sakha News Agency.

 

Aug. 21, 2006
Public to contribute to pipeline environment impact assessment

Today, public consultations will begin to consider the environment impact assessment of the Tynda-Aldan stretch 410 kilometers long as part of the feasibility study of the Eastern Siberia - Pacific pipeline project.

The consultations are to be held in the cities of Blagoveshchensk and Tynda (Amur region), and Neryungri, Aldan, and Yakutsk of Republic of Sakha (Yakutia). They are to be attended by representatives of local and other authorities, and public organizations, including environmental institutions. Proposals and objections from the public received within 2 coming months are to be taken into consideration in order to finalize the environment impact assessment.

In July, public hearings were held for the first stretch Ust-Kut - Talakan field, and another round of public consultations is planned for the third stretch, Talakan field - Aldan, for October 2006.

Resource: RBCNews

 

Aug. 14, 2006
Construction of ESPO pipeline proceeding rapidly - Kvashnin (Part 2)

SOCHI. Aug 14 (Interfax) - The first 100-kilometer section of the East Siberia-Pacific Ocean (ESPO) oil pipeline has been built, presidential envoy to the Siberia Federal District Anatoly Kvashnin told President Vladimir Putin.

"The first kilometers have been built. The work is proceeding vigorously," Kvashnin said.

In compliance with the president's orders, the pipeline's route has been shifted to the north, closer to the oil fields, Kvashnin said. "And it bypasses [Lake] Baikal," Putin said.

The decision to move the pipeline's route to the north helps sort out two problems: it resolves the environmental issue and will help cut oil transportation costs because the pipeline will be built closer to the oil deposits, the presidential envoy said.

"Everything is going normally," Kvashnin said. But the qualifications of workers from Siberia who are building the pipeline poses a problem, he said, adding that this problem is being tackled. Putting the finished sections of the pipeline into operation will be among the tasks facing the country's authorities next year, he added.

Kamil Iskhakov, presidential envoy to the Far East Federal District, also praised the decision to move the pipeline's route to the north. "It allowed us to encompass Yakutia and the oil fields that are located there and from where oil will be shipped. The site for an oil terminal has already been chosen. Work on the territory itself has been launched," he said.

The first 40-kilometer segment along the pipeline's route in the Amur region has already been cleared, Iskhakov said. The first pipe will be laid in late August-early September, he said.

"It is a colossal event for the Far East. It will influence the entire life of the region," he said.

Putin reminded the participants in the meeting about a recent decision to ease the tax burden for oil and gas deposits in East Siberia.

"I hope that it will also play its role for the republic where you once worked [Tatarstan]. Oil will be regulated there in a special way. Conditions will be created to open new deposits," Putin said, adding that he discussed this issue in a Monday telephone conversation with the president of Tatarstan.

A large number of other projects, including infrastructure development programs, railroad links and networks of motorways, will be put into practice along with the ESPO project, the president said.

Recource: www.interfax.com

 

July 28, 2006
Transneft decides on location for Siberian pipeline terminal

IRKUTSK, July 28 (RIA Novosti) - Transneft [RTS: TRNFP], Russia's state oil pipeline monopoly, has decided to build an oil terminal for a pipeline running from East Siberia to the Pacific at Kozmino Bay, head of the company said Friday.

Initially Transneft had also considered Perevoznaya Bay as a possible site for the East Siberia-Pacific Ocean (ESPO) pipeline's terminal.

Semyon Vainshtok said the construction of the first stage of the pipeline, which started on April 24, was on schedule, and that the feasibility study for the second stage would be ready by October 12.

"Construction is being carried out using international technologies, to a high level of quality," Vainshtok said.

He added that 124 km (77 miles) of pipeline had already been laid down, and 276 km (171 miles) of the route had been prepared for pipe installation.

The ESPO pipeline, which will supply oil to Asia-Pacific region, has met with strong opposition. At the end of May, Russia's Supreme Court rejected an appeal by environmental organizations asking it to strike down a government decision of December 31, 2004, on the construction of the pipeline. The groups said the document could not be approved before a state ecological expert assessment had been carried out.

President Vladimir Putin said in late April that the pipeline should pass outside the drainage basin north of Lake Baikal, the world's largest body of fresh water and an environmentally sensitive zone on Unesco's list of World Heritage Site, upsetting Transneft's previous plans.

Engineers chose the longest variant for the new ESPO route, with the pipe passing 200km from Baikal. The bypass route will be 1,920 km long and will pass through the Irkutsk Region, Yakutia and the Amur Region.

The pipeline is slated to pump up to 80 million metric tons of crude a year (1.6 mln bbl/d) from Siberia to Russia's Far East, which will then be exported to the Asia-Pacific region, in particular energy-hungry China.

The first stage of the project will connect Taishet in the Irkutsk Region to Skovorodino in the Amur Region in the Far East.

Recource: RIA Novosti

 

July 13, 2006
Public hearings on East Siberia- Pacific Ocean oil pipeline

Public hearings on materials of “ Environmental Impact Assessment” (EIA) within the framework of feasibility study of “East Siberia-Pacific Ocean oil pipeline system expansion” will be held on July 14.

Materials with the “Ust-Kut – Talakanskoe oil field” first starting complex will be viewed in the city of Irkutsk, Ust-Kut, Kirensk ( Irkutsk region), Yakutsk and Lensk ( Republic of Sakha).

Both federal and territorial scientific centers and universities participated in working out of EIA. Experts and scientists carried out analysis of requirements of Russian, regional and International legislations in the sphere of environmental protection and use of natural resources. EIA contains issues of protection of geological environment, underwater and surface water, soil resources, flora and wild life as well as issues of impact on protected natural preserves, social and economic evaluation of the project etc.

Following approval of Declaration of intention on enlargement of oil pipeline system in three federal districts – Irkutsk and Amur regions and Republic of Sakha- Transneft proceeded to development of the Feasibility study of the project.

Representatives of regional authorities, environmental, scientific and public organizations and mass media are invited to participate in the public hearings, which will be run in accordance with the Federal Law “ On Public examination”.

The report will be presented by employees of the project designer companies – “Engineering oil and gas company – All-Russian Research institute on construction and maintenance of oil pipelines and facilities of fuel and energy complex” (VNIIST JSC), “ Design Institute of rehabilitation and construction of oil and gas facilities” (PIRS JSC. Participants will have an opportunity to discuss the materials presented. The protocol, to be made under results of discussions, will be the part of Feasibility study of the project.

Resource: Transneft Press Centre

June 29, 2006
Environmental review on Pacific pipeline expected by end 2006

MOSCOW, June 29 (RIA Novosti) - An environmental review of the feasibility study for a new section of an oil pipeline from Siberia to the Pacific is expected by yearend, an Industry and Energy Ministry source said Thursday.

President Vladimir Putin said in late April that the East Siberia-Pacific Ocean (ESPO) pipeline, should pass outside the drainage basin north of Lake Baikal, upsetting state-owned oil pipeline monopolist Transneft's previous plans to run it as close as 800 meters from the world's largest body of fresh water, an environmentally sensitive zone on Unesco's list of World Heritage Sites.

"We are expecting an environmental review on the ESPO feasibility study by the end of the year," the official said.

Designers chose the longest variant for the new ESPO route, passing 200km from Baikal. The bypass route will be 1,920 km long and will pass through the Irkutsk Region, Yakutia and the Amur Region.

The pipeline is slated to pump up to 80 million metric tons of crude a year (1.6 mln bbl/d) from Siberia to Russia's Far East, which will then be exported to the Asia-Pacific region, in particular energy-hungry China.

The first stage of the project will connect Taishet in the Irkutsk Region to Skovorodino in the Amur Region in the Far East. The cost of the first stage was initially estimated at $6.5 billion.

Recource: RIA Novosti

June 29, 2006
Transneft Mulling 2 Terminals for Siberian Pipeline

MOSCOW - Transneft [RTS: TRNFP], Russia’s state pipeline monopoly, is considering two locations for the Pacific Ocean terminal of an oil pipeline running from East Siberia, the Industry and Energy Ministry said Thursday.

The company is considering building the East Siberia-Pacific Ocean (ESPO) pipeline terminal “on the Kozmino Bay, and is also completing a feasibility study for an oil terminal on the Perevoznaya Bay, taking into account government expert reports,” a ministry source said.

The ESPO pipeline, which will supply oil to Asia-Pacific region, has met with strong opposition. At the end of May, Russia’s Supreme Court rejected an appeal by environmental organizations asking it to strike down a government decision of December 31, 2004, on the construction of the pipeline. The groups said the document could not be approved before a state ecological expert assessment had been carried out.

President Vladimir Putin said in late April that the pipeline should pass outside the drainage basin north of Lake Baikal, the world’s largest body of fresh water and an environmentally sensitive zone on Unesco’s list of World Heritage Site, upsetting Transneft’s previous plans.

Engineers chose the longest variant for the new ESPO route, with the pipe passing 200km from Baikal. The bypass route will be 1,920 km long and will pass through the Irkutsk Region, Yakutia and the Amur Region.

The pipeline is slated to pump up to 80 million metric tons of crude a year (1.6 mln bbl/d) from Siberia to Russia’s Far East, which will then be exported to the Asia-Pacific region, in particular energy-hungry China.

The first stage of the project will connect Taishet in the Irkutsk Region to Skovorodino in the Amur Region in the Far East.

Recource: RIA Novosti

June 15, 2006
ESPO: one more step.

Social and advisory Council under the President of Sakha Republic ( Yakutia) brought  East Siberia-Pacific Ocean oil pipeline one step closer to the process of construction. Having approved the Declaration on intention of pipeline to pass via the territory of Yakutia, the Council thus gave an opportunity to customer “Transneft" to proceed to the next phase of the project realization – development of feasibility study.

The Declaration was approved at meeting hold on June 13, with participation of Vyacheslav Shtyrov – Head of the Republic. Following the address of industry Minister Aleksey Struchkov, who talked on outlooks of oil and gas industry, construction phases, its engineering factors, high level of safety, reference provision, using of personnel potential, economical efficiency, comprehensive approach to oil and gas fields development, there were number of questions and speeches. In whole they had positive nature.

Vyacheslav Shtyrov expressed his view on energy safety of Yakutia, strengthening of position at the East and entering to APR markets having a potential of both Yakutsk and Kazakh oil to be transported to. He noted, that during various phases of ESPO pipeline construction the Republic of Sakha could get from RUR3billion up to RUR5 billion, and have 1300 new qualified workplaces in Transneft's system. In October, Lensk region have to sent 200 for education in high schools and then to select personnel for institute of higher education.

Shtyrov emphasized that one needs to consider construction of pipeline in a par with construction of highway, without which efficiency of any oil fields development seems to be questionable.   At the same time, none of highway can compare with construction of pipeline system, passing through several regions of Russian Federation, he noted.

Resource: Transneft Press Centre

June 07, 2006
President of Yakutiya visits future route of ESPO pipeline

On June 8, the President of Republic of Sakha (Yakutiya) Vyacheslav Shtyrov began his joint working trip with Transneft's employee along the route of the designed section of East Siberia- Pacific Ocean oil pipeline. Representatives of executive and legislative authorities of Yakutiya, heads of municipal unions, representatives of control and inspectorate authorities participate in the trip.

Delegates are expected to visit section of expansion of main ESPO pipeline and conduct meeting on designing and construction-related issues, discuss problems regarding delivering, unloading and stocking of cargoes, crossing of Lena river, lands allotment, securing of environmental safety.

The route of the future oil pipeline system is under exploration and design works at meantime. The final route will be defined following all approvals needed. 

Resource: Transneft Press Centre

May 29, 2006
ESPO declaration of intention approved

The government of Sakha Republic (Yakutia) approved the declaration of intention to move the Eastern Siberia - Pacific Ocean (ESPO) pipeline submitted by Transneft, the project headquarters' press service in Yakutsk reported. They noted that the project had been previously approved by the administration of the Irkutsk and Amur regions.

After today's hearings the project team may start the project's feasibility study, the company's statement reads. As announced before, only the revised part of the project would be submitted to the state ecological inspection. The declaration of intention was prepared after the instruction from Russian President Vladimir Putin to move the pipeline off the Baikal's water collection area. The new pipeline route will be laid 400 kilometers from the Baikal coast. The pipeline will be extended by around 370 kilometers.

The total length of the rerouted ESPO section will reach 1,900 kilometers.

Resource: RBCNews

May 23, 2006
Siberia-Pacific pipe to be built by end 2008 despite extension

IRKUTSK, May 23 (RIA Novosti, Alexander Batalin) - A pipeline from East Siberia to the Pacific Ocean to supply countries in the Asia-Pacific region will be finished by December 2008, an official said Tuesday.

Mikhail Chemakin, the head of Vostoknefteprovod, a company involved in construction of the East Siberia-Pacific Ocean (ESPO) pipeline, said the terms would not be changed despite the need to bypass Lake Baikal.

President Vladimir Putin said in late April that the ESPO pipeline should pass outside the drainage basin north of Lake Baikal, the world's largest body of fresh water and an environmentally sensitive zone on Unesco's list of World Heritage Site, upsetting state-owned oil pipeline monopolist Transneft's previous plans.

"The directive to finish construction was defined by a government resolution as December 2008, and it remains unchanged," Chemakin said at a Transneft meeting in Irkutsk.

Designers chose the longest variant for the new ESPO route, with the pipe passing 200km from Baikal. The bypass route will be 1,920 km long and will pass through the Irkutsk Region, Yakutia and the Amur Region.

Recource: RIA Novosti

May 19, 2006
Decision on the end-point of ESPO pipeline will be reached in the course of year.

The final decision on the end-pint of the ESPO pipeline will be reached in the course of the year, said the day before chief of the Ministry of industry and energy Viktor Khristenko in St.Petersburg, Rosbalt informs. He explained, that there are remarks from environmental authorities with regard to Perevoznaya Bay at meantime (Pacific oceanfront is the planned end-point of ESPO), therefore designers are working today over two aspects – either to eliminate these remarks and to build absolutely safe conditions of operation or to change the end-point.

“ We have one year for all final project solutions to be prepared an approved. We are not sure over the end point at moment but one thing is clear – it will be the Pacific oceanfront. It is guaranteed that the end point will be located in Nakhodka area that is obvious from the ice condition. Key condition is that it is necessary to find reliable, favourable and safe region for navigation”.

Recource: Transneft Press Centre

Apr 28, 2006
Move of pipeline from Baikal may add $1-bln to project cost

IRKUTSK. April 28 (Interfax) - The cost of building the first phase of the Eastern Siberia-Pacific Ocean (ESPO) pipeline may increase by about $1 billion due to the change of route, Dmitry Ogulchansky, general director of ESPO Management Center, a Transneft subsidiary responsible for the project, told journalists on Friday.

He said that more than likely the new pipeline route will leave Irkutsk region along the Lena River through Yakutia. This territory has difficult conditions, on some sections there are no roads, he said.

He also said that due to the decision to move the pipeline 40 km north of Baikal, the route may increase by about 1250-1260 km.

Russian President Vladimir Putin ordered that the section of the pipeline along Lake Baikal be moved outsides the water conservation zone -over 40 km from the lake.

Recource: www.interfax.com

Apr 28, 2006
Transneft launches ESPO pipeline construction

TAISHET. April 28 (Interfax) - Transneft (RTS: TRNF) officially launched the construction of the East Siberia - Pacific Ocean (ESPO) oil pipeline on Friday, an Interfax correspondent reports from the ceremony at which the first pipeline joint was welded, close to the city of Taishet in the Irkutsk region.

"In keeping with the decision reached by Russian President Vladimir Putin and the head of Transneft, the company has today started to build the first stage of the ESPO pipeline, the general contractor for which [the first stage] is [Omsk-based] Stroisistema" said Anatoly Bezverkhov, general director of Transneft's 100%-subsidiary ESPO project Management Center.

Design work to adjust the pipeline's route will take place in parallel with the construction, in accordance with the decision to move the pipeline 40 kilometers north of Lake Baikal, Bezverkhov said. The VNIIST institute will oversee the designs. More can be said about the new route in the next couple of months, he said.

Bezverkhov said the first stage of the pipeline would still be commissioned on schedule in 2008, despite the route alteration, and that there would still be six pumping stations, three of them in the Irkutsk region. But the link with the pipeline from the Talakan field in Yakutia, which is developed by Surgutneftegas (RTS: SNGS) will have to be relocated, he said.

Recource: www.interfax.com

Apr. 24, 2006
ESiberia-Pacific Ocean pipeline construction begins in Irkutsk

IRKUTSK, April 24 (Itar-Tass) - The construction of the Eastern Siberia-Pacific Ocean oil pipeline has begun in the Irkutsk region, Governor Alexander Tishanin said on Monday.

Pipes have been delivered to the region by 1,600 railway carriages that are now being unloaded at the Taishet, Chuna and Vikhorevka stations.

An 885-kilometer section of the 4,130-klometer pipeline would run across the Irkutsk region. The pipeline will cross the Angara, Ilim and Lena rivers.

The construction is expected to be completed by summer 2008. At first, oil will be pumped from Western Siberia via the Omsk-Irkutsk oil carrier through a spur pipeline near Taishet.

Later oil will begin to be pumped from fields in Eastern Siberia and Yakutia. The pipeline’s throughput will be 80 million tonnes per year. The project's costs are estimated at 10.75 billion U.S. dollars.

Recource: www.itar-tass.com

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