LONDON: Rosneft Oil Company’s Board of Directors approved the sale of 10% in the charter capital of Vostok Oil LLC to Trafigura PTE LTD.
At a meeting, Rosneft’s Board of Directors also reviewed the progress of the Vostok Oil project. The proven resource base of the Project for liquid hydrocarbons is 6 billion tonnes (44 billion barrels).
To meet the energy needs of the project, the Company entered into an agreement with Inter RAO PJSC for a set of works to design and construct energy infrastructure, which includes power centres with a total capacity of 2.5 GW, as well as more than 3.5 thousand km of power lines.
In order to organize the export of products from the Vostok Oil project, the Zvezda shipyard placed an order for a series of 10 tankers of high ice class with deadweight 120 thousand tonnes adapted for operation on the Northern Sea Route. In general, it is planned to build 50 ships of various classes in the interests of the Project.
Over 20,000 production and injection wells are to be drilled under the Vostok Oil project, so the Company paid special attention to selecting drilling complexes. Based on the results of tender procedures, the Board of Directors approved a long-term contract for supply of 100 drilling rigs designed for operation in the Far North.
The project will take into account the most stringent environmental requirements. Vostok Oil’s top priority is preserving the fragile nature of the region. High reliability and safety indicators of equipment and production will ensure minimal environmental impact.
Work is continuing to provide the Project with resources and production facilities. In particular, an agreement has been reached with KAMAZ PJSC to supply transport vehicles and special equipment and to establish service centres at the oil fields. At the initial stage the demand is up to 2.5 thousand vehicles. In the future, the demand may grow to 6 thousand.
The Vostok Oil project will provide a significant multiplier effect for the whole Russian economy, additionally creating tens of thousands of jobs and service personnel.
On the whole, as calculations by specialists from the Institute of Forecasting of the Russian Academy of Sciences show, the project implementation creates additional incentives for localization of high-tech equipment and provides an increase in domestic demand for products of various industries equivalent to 2% of GDP per year.
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