OREANDA-NEWS. March 25, 2008. Last week, Verkhnechonskneftegaz completed construction and installation works in the linear part of the oil pipeline running from the Verkhnechonsk oil and gas condensate field to booster pump station No.10 of the Siberia–Pacific Ocean system of oil pipelines, said Mugammar Galiullin, Director of Verkhnechonskneftegaz, to the press on March 24.

According to him, the total cost of oil pipeline construction from the field to the Siberia–Pacific Ocean system is approximately 7 billion rubles. The linear part of this pipeline, in particular, requires 1.25 billion rubles for construction of the oil pipeline per se and power transmission and communication lines along the pipeline route.

Apart from that, construction of headwork facilities requires 2.5 billion rubles, of which 1.2 billion rubles will be used by the Limited Liability Company “Vostok Ltd.,” which was chosen as the contractor for these works. The headwork facilities include, in particular, a control room, pump station, boiler house, etc. Another 2.3 billion rubles, according to Mr. Galiullin, wil be spent by the company for construction of custody transfer and power generation facilities.

Mr. Galiullin said that Verkhnechonskneftegaz is currently performing works for blowing down the oil pipeline. In May, when the ambient temperature is always positive, the company will start hydraulic tests of the oil pipeline.

He noted that the total length of the oil pipeline from the field to the point of tying into the Siberia–Pacific Ocean system of oil pipelines is 89 kilometers. The oil pipeline is being constructed by the Open Joint-Stock Company “Sibtruboprovodstroi” (Novosibirsk).

Verkhnechonskneftegaz is the subsoil user of the Verkhnechonsk oil and gas condensate field, whose reserves are estimated at 159.5 million tons of oil of category C1, 42 million tons of oil of category C2, 0.44 million tons of condensate of category C1, 2.9 million tons of condensate of category C2, 56 billion cubic meters of gas of category C1, and 105 billion cubic meters of gas of category C2.

Verkhnechonskneftegaz is planning to produce 1.314 million tons of oil in 2009 with a prospect of supplying oil to the Siberia–Pacific Ocean system of oil pipelines. In 2008, the company will produce 326,000 tons of oil (the license agreement implies production of 287,000 tons).