Source Pravda.Ru

Surgutneftegaz to Build Oil Port In Leningrad Region by 2005

The construction of a deep oil-refining (hydrocracking) complex at the Kirishi oil refinery (Kirishinefteorgsintez is part Surgutneftegaz) will be completed by 2005. This was revealed to journalists yesterday by Leningrad Region Governor Valery Serdyukov after a meeting with the president of Surgutneftegaz, Vladimir Bogdanov. According to Serdyukov, all questions relating to the first stage of the project have already been resolved: a site has been prepared, and equipment is being delivered. 'The active construction phase will be in 2003-2004,' said the governor. Bogdanov added that 'construction of the port in Batareinaya Bay will run parallel to work on the hydrocracking complex.' Serdyukov declared that the oil terminal would also be completed by 2005.

Investment in the Kirishi hydrocracking complex is worth USD 600-800 million. The new facilities will increase the plant's refining depth from 55% to 85%, which will allow it to increase production of refined oil products. Construction of the port in Batareinaya Bay requires investment of around USD 120-150 million.

Surgutneftegaz was created in 1993. The company currently has over 50 subdivisions engaged in exploring, equipping and developing oil and gas fields, and extracting oil and gas. Independent analysts suggest that the company has recoverable reserves worth 2.5 billion tonnes of oil equivalent a year. Over the last few years the company's share of the Russian oil extraction industry has grown from 11% to 13%. The company also extracts over 10 billion cubic metres of gas each year. The company's oil refinery is located in the town of Kirishi in the Leningrad Region.

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