OREANDA-NEWS.  Transneft’s development, retooling and reconstruction programme until 2020 has been considered. The programme includes the comprehensive upgrade of its system of oil trunk pipelines to meet production and processing requirements, the efficient transport of oil both domestically and for export, the creation of infrastructure for a flexible and competitive market of oil and oil products, and opening new oil markets.

Dmitry Medvedev: Today we will discuss the development of oil trunk pipelines in the country. These pipelines form a unique complex both by domestic and global standards. I won’t describe it now, but all those present know well why it is unique. Its proper performance depends on its operator, Transneft. So today we’re going to discuss the development of Transneft.

Dmitry Medvedev: The main tasks of Transneft are the comprehensive upgrading of oil trunk pipelines for meeting the production and processing requirements, efficient transportation of oil at home and abroad, the formation of the infrastructure for a flexible and competitive market of oil and oil products, and opening new oil markets.
We will review the programme for the development, re-equipment and reconstruction of the company for the period up to 2020. The main tasks have been formulated in governmental and departmental documents. I am primarily referring to the comprehensive upgrading of oil trunk pipelines for meeting the production and processing requirements, efficient transportation of oil at home and abroad, the formation of the infrastructure for a flexible and competitive market of oil and oil products, and opening new oil markets.

Naturally, Transneft should develop in a balanced manner, taking into account the interests of related sectors (many sectors depend on it) and domestic producers, including high-tech industry. It should help Russia conquer new energy markets, primarily in the Asia-Pacific region.

Dmitry Medvedev: Transneft should develop in a balanced manner, taking into account the interests of related sectors and domestic producers, including high-tech industry. It should help Russia conquer new energy markets, primarily in the Asia-Pacific region.
There are a number of objective factors. Some deposits in Western Siberia are becoming depleted, and new deposits are being developed in the polar region and Eastern Siberia. It is necessary to develop oil processing in the south of Russia and the Far East. Transneft should consider all these tasks in its investment plans, including such ambitious goals as increasing the capacity of the Eastern Siberia-Pacific Ocean oil pipeline to 80 million tonnes per year by 2020.

Obviously, the company’s investment plans are closely linked with the Government tariff policy, which should encourage a transition to long-term tariff regulation. Quite recently we discussed long-term tariffs for electricity and gas with most of all those present here.

Dmitry Medvedev: One of the main tasks of Transneft is the increasing of the capacity of the Eastern Siberia-Pacific Ocean oil pipeline to 80 million tonnes per year by 2020.
In cooperation with the Ministry of Economic Development and the Energy Ministry, the Federal Tariff Service is drafting a relevant decision for Transneft. Experts are considering an opportunity to fix the parametres of the annual tariff adjustments on oil delivery by trunk pipelines. But the final decision hasn’t yet been made.

Today we’ll discuss these initiatives and other aspects of Transneft’s development, including dividend policy and other proposals. There are many proposals, which I hear from various players on the market. Let’s consider all of them.