OREANDA-NEWS. On October 15, 2008 Rosneft’s Senior Vice President Sergey Kudryashov and TNK-BP’s Chief Operating Officer Tim Summers took part in the launch of an oil pumping station at the Verkhnechonskoye oil and condensate field (Irkutsk region). This marked the beginning of commercial crude oil shipments from Verkhnechonskoye to the East Siberia — Pacific Ocean pipeline system (ESPO), reported the press-centre of Rosneft.

Immediately following the opening ceremony, Sergey Kudryashov commented that Verkhnechonskoye field development is feasible and viable, while also stressing that the project’s economic efficiency is partly attributable to the existing tax benefits.

Talking about the uncertainty over East Siberian Gas Company’s 11.29% stake in Verkhnechonskneftegaz, which holds a mineral license to the Verkhnechonskoye field, Mr. Kudryashov illuminated Rosneft’s continuing interest in growing its share in the project. “Rosneft management has never ruled out this option. We are ready to compromise as we believe all parties should be able to capture enduring benefits from this collaborative development,” Sergey Kudryashov said.

According to Rosneft’s Senior Vice President, capital expenditures in 2009 are expected to exceed those in 2008, and will target primarily the upstream segment, particularly Yuganskneftegaz, Samaraneftegaz, Purneftegaz, and Vankorneft. Rosneft’s other top priorities for 2009 are the Yurubcheno-Tokhomskoye field development, improving associated petroleum gas utilization, and encouraging exploration. “Despite the current turmoil in financial markets, we remain optimistic about achieving our best-scenario targets for 2009, which means further growth in capital expenditures and production,” Mr. Kudryashov added.

Commenting on the global financial crisis, Sergey Kudryashov expressed strong confidence in the Russian Government’s proactive measures to back the country’s fuel and energy sector. According to Mr. Kudryashov, with the Government’s recent steps to solve the crisis, Rosneft has good prospects to deliver on its most optimistic targets for 2009, which is further supported by the Company’s high operating efficiency.

Sergey Kudryashov also noted that Rosneft developed a comprehensive set of measures to be put into place should the financial crisis deepen. In particular, such anti-crisis measures imply suspending Rosneft’s projects that have no material effect on the Company’s profitability. At the same time, Mr. Kudryashov stressed that Rosneft’s HR plans currently do not envisage any staff cuts.