Source Pravda.Ru

LUKoil to Open First Stage of Vysotsk Terminal at End of Year

LUKoil president Vagit Alekperov yesterday revealed that the company will bring the first stage of its Vysotsk oil terminal on line in November-December 2003. Alekperov was speaking to journalists after holding talks with Leningrad Region Governor Valery Serdyukov.

According to Alekperov, LUKoil has already spent around 3.5 billion roubles (USD 110 million) on preparing the infrastructure and buying equipment. Alekperov predicted that the first stage, which will have a capacity of 3.8 million tonnes and is to handle heavy petroleum products and diesel fuel, will cost USD 120-140 million. The planned capacity of the terminal is 10.8 million tonnes, and planned investment totals about USD 300 million. According to LUKoil's president, construction of the second stage (for handling light petroleum products) will be carried out at the same time. Alekperov said that bringing the terminal on line would allow LUKoil to increase oil extraction and refining. 'Due to a lack of oil export infrastructure in Russia, and the fact that the Baltic ports are working at full capacity, LUKoil has been forced to reduce oil extraction by 6,000 tonnes a day,' stressed LUKoil's president.

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