On February 4, 2008 Rosneft Oil Company and the State Corporation of Development and Foreign Economic Activity Bank (Vnesheconombank) signed a Memorandum of Cooperation.
The document outlines the parties’ joint participation in projects aimed at the development of infrastructure, innovative technologies, and diversification of operations to improve crude oil and high quality refined petroleum products exports.
According to the Memorandum, Vnesheconombank will conduct due diligence and financial analysis of several of Rosneft’s capital-intensive projects, including the Tuapse Refinery upgrade and the construction of an oil pipeline from Rosneft’s Vankor development to Transneft’s trunk pipeline system in the Yamal-Nenets Autonomous District (Purpe). The Bank will also take part in financing and arranging funding for the Projects.
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Vankor — Purpe 543 km oil pipeline will connect Rosneft’s Vankor development in the Krasnoyarsk Region with Transneft’s trunk oil pipelines in Western Siberia. This will facilitate transportation of Vankor crude to Asian-Pacific markets via the planned Eastern Siberia — Pacific pipeline system. The project implementation will facilitate overall economic growth of the Krasnoyarsk Region, will promote integration of Northern Territories with the regional economic growth centers and ensure inflow of private investment into related sectors of the Region’s economy.
The upgrade of Rosneft’s Tuapse Refinery includes the construction of a 12 mmty facility based on the existing facilities. Work completion of Phase 1 is scheduled for 2010 with Phase 2 to follow in 2012. Upon completion of the upgrade, the Tuapse Refinery will become one of the most technologically advanced refineries in the Russian Federation with light product yield of 95%. |
In his comments regarding signing of the Memorandum, Rosneft President Sergey Bogdanchikov noted that implementation of the projects assumed in the Memorandum will be a notable contribution by Rosneft and Vnesheconombank into reinforcement of the national and global energy security. Vnesheconombank Chairman Vladimir Dmitriev on his part stated that VEB was prepared to support large-scale Rosneft projects provided they fit into the bank’s memorandum on financial policy and that the bank would start the projects comprehensive assessment in the nearest future.
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