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September 1, 2005
The USA is opening strategic oil reserves
The US Government decided to open up strategic oil reserves. This decision was made in regard to the fact that refineries located in the Southern part of the country have lost their oil supplies from the Gulf of Mexico as a consequence of the hurricane “Katrina”.
August 31, 2005
Three ancient sites were found on the route of the Eastern pipeline
Archeological expertise of the territory where “East Siberia-Pacific” pipeline will be constructed by “Transneft” is over. According to the head of archeological service of the Center of Saving the Heritage Mikhail Sklyarevski, scientists have found three valuable archeological sites.
In the point, where pipeline crosses Ust-Ilim reservoir storage, scientists found a site of ancient people that was estimated to be 20 thousand years old. In the course of diggings, they found bones of mammoth and rhinoceros and instruments of labor made of stone. Two older sites found in Kazachinsk-Lensk area contained fragments of ceramic vases.
At the public hearings devoted to construction of the pipeline that took place in Irkutsk on August 16, representatives of “Transneft” stated that all found objects representing archeological and cultural value will be evacuated. In case this is impossible to do, the route of the pipeline will be reconsidered.
August 31, 2005
“Rosneft” contemplates on where to direct oil from Vankor
“Rosneft” can not make a decision where to send oil from Vankor: to Dixon or to “Transneft” pipeline. According to the newspaper “Vedomosti”, experts assert that the company will reject northern route and send oil to China through the Eastern pipeline.
Representatives of “Rosneft” say that the route has not been chosen yet. Decision will be made in the nearest future and, most likely, the company will reject the northern variant.
July 26, 2005
Drop in oil production at the Sakhalin Island
It was stated at the meeting in Sakhalin city administration, where such questions as social-economic development and fulfillment of the budget for half year period of 2005 were considered.
The main reason of the drop in oil production, which had happened in the first half of the year, were difficult ice conditions. Oil production on the shelf in the frameworks of "Sakhalin-2" project started in the middle of July. At the same time "NK Rosneft-Sakhalinmorneftegas" company has maintained stable activity, and reduction of planned indices did not take place. Fuel and mazut production has increased twice in the industry, diesel oil - on 53 %. There is an over fulfillment of diesel oil production, press department of the local administration reported.
Construction contractor's works are speeded up. The biggest part of them are implemented on the oil and gas projects, transportation projects, and energy projects. Under construction contracts building and construction works are fulfilled on 40,5% or 14,6 billion rubles, which is more that at the same period of the previous year.
July 26, 2005
"Gasprom" specialists protect gas pipelines from forest fires in Yakutiya
Unprecedented hot weather over last days on the south of Jamal led to rise of six large fireplaces. In total 39 inflammations were registered in Noyabrsk region from the beginning of summer. Noyabrsk environs have third class of fire-risk.
All available resources are involved into fire-fighting. Machinery of the Vyngapurovsk administration of "Syrgutgasprom" was delivered to the disaster area. In the conditions of hot weather peat bogs smolder and burn in immediate proximity to the pipeline. The specialists managed to block fire's way to the pipeline, news agency "Sever-Press" reported.
July 22, 2005
Russia is ready to transport 15 million tons of oil to China in 2006
"China questions Russia to supply 10 million tons of oil this year" reported Igor Levin, the minister of Transportation Department of Russian Federation, in Beijing on Thursday. "We are ready to do that and to convey 10 million tons" he said.
At the same time he confirmed that Russian railway transport will be ready to provide the conveyance of 15 million tons of oil to China in the year 2006.
I. Levin heads Russian delegation of the subcommittee meeting on transportation, which is a part of the Russian-Chinese committee on regular governmental meetings preparation, the news agency "Novosty" reported.
July 22, 2005
The construction of the first part of the Eastern oil pipeline will be started in December
The construction of the first part of the Eastern Siberia - Pacific Ocean oil pipeline (ESPO) in the region Taishet-Skovorodino will start in December, 2005. Mikhail Chemakin, the general director of the "Transsibneft", mentioned that at the public meeting at Tynda railway department administration, the press department of the Far Eastern Railways reported.
The pipeline track is planned to build along the Baikal-Amur trunk-railway, which will be used to convey all necessary goods for the construction. It was noted that about 500 thousand tons are expected in Tynda only. In connection with that it is necessary to rebuild dead-end sidings and build high platforms. "The work should be done by February, 2006" said Mikhail Chemakin.
Concernment of the mutual understanding between local administration and railway administration was emphasized several times at the meeting. It is determined by the importance and strict deadlines of the pipeline construction.
July 5, 2005
Vladimir Putin: The construction of the East Siberia - Daitsin pipeline is the largest economic project
Vladimir Putin, the president of the Russian Federation, considers the construction of the East Siberia - Daitsin oil pipeline as the largest economic project. He told about that yesterday at the meeting of the Council on development assistance to civil society institutes and human rights.
V. Putin mentioned that the concernment of the pipeline construction can be compared with the concernment of the Baikal-Amur trunk-railway. According to the President's opinion new oil pipeline has to give "high effect for the federal State" and also will allow Russia to exit on the energy markets of the Asia-Pacific Region, in particular on Chinese market, South Asia countries market, and Japanese market, "Perviy Canal" reported.
July 5, 2005
05.07.05 Russian oil export increased by 9,4%
Over last six months 230 million tons of oil were extracted in Russia. In comparison with the same period of the previous year oil production has increased by 6,6 million tons.
According to the information from "Transneft" oil export from Russia to distant countries constituted 106,332 million tons, which is on 9,4% or 9,2 million tons more, than it was last year.
July 4, 2005
04.07.05"Sibneft" goes to Siberia
"Sibneft" has expanded its oil and gas possessions in the East Siberia. Recently this company has won an open auction to have a right of prospecting and producing of hydrocarbon raw materials in Yakutiya. This purchase in this region is the second one for the company. The first one was made in Krasnoyarsk. Value of extracted oil and gas constitutes 16,9 million tons and 13,4 billion cubic meters correspondingly. The company will pay 440 million rubles for the license to extract oil and gas, which equals to 0,078 USD for barrel.
July 4, 2005
Foundation for marine platform "Loon-A" was installed on the shelf of the Sakhalin island
Reinforced concrete foundation, which weights more than 100 thousand tons, was installed on the Loonsky deposit on the north-east of the Sakhalin. It's a basis for the marine oil and gas production platform "Loon-A". Installation process took 4 days and was completed successfully.
Towboats brought the foundation to the place of installation from Vostochny port (Nakhodka, Primorsk region). The construction is installed on the seabed at a depth of 48 metres, so it will be held in place because of its own weight. Next summer upper construction will be installed.
Gas, which is planed to extract on the platform, will be processed on the nature gas liquation plant on the south of the Sakhalin island.
July 1, 2005
Sakhalin indigenous people have stopped the vigil against oil companies
Today all vigils against such oil companies as "Exxon Neftegas Limited" and "Sakhalin Energy" have been stopped. Over three previous days roads were blocked off by hundreds of indigenous people.
They are dissatisfied with the fact of construction of big oil and gas project, connected with "Sakhalin-1" and "Sakhalin-2". According to the plan 800 km oil pipeline will extend from the north to the south of the island and one more 200 km oil pipeline will be on the north going to De-Kastri, Khabarovsky krai.
Oil industry executives do not comply with the indigenous people's requests to conduct an expertise, which has to reveal whether oil industry influences the environment negatively or it does not, said Alexey Limanzo, the leader of the indigenous people. Today the participants of the vigil named "Green Wave" will meet and define ways of further fight for their rights. Negotiations with "Exxon Neftegas Limited" and "Sakhalin Energy" do not bring any results, said Alexey Limanzo.
June 29, 2005
Indigenous people of the Sakhalin island continue their vigil against "Exon Neftegas Limited"
Today indigenous people from the north of the Sakhalin oblast' continue their vigil against oil companies, which implement oil production projects on the shelf. In the very morning they have started the vigil at the road, which leads to projects of "Exon Neftegas Limited" near Chaivo bay.
Yesterday they blocked roads, which lead to the projects of "Sakhalin Energy". Representatives of different indigenous peoples from the northern part of the Sakhalin island were involved into the vigil. Non-governmental ecological organizations of Sakhalin also took part in it.
The main claim of the pickets is to conduct independent ethnological expertise and create a Indigenous People Support Fund.
June 29, 2005
With the WTO accession Russia will not change its export duties on oil
With the WTO accession Russia is ready to undertake obligations not to change the scheme of the oil and gas export duties, said the chairman of the Russian delegation on negotiations about the WTO accession. It was announced in the end of the previous week during regular meeting of the WTO accession work group. He also noted, that it does not mean obligatory cancellation of the oil and gas duties. It means that after the accession to the WTO Russian Federation will not change schemes of the duties.
For now oil duty in Russian Federation is set with the approved formula, which includes prices at the world market for the last two months, and lasts for two-months period. Thus, the higher the price at the world market, the higher the duty, and, correspondingly, oil duty also decreases if prices at the world market drop.
June 28, 2005
Walkouts at the Sakhalin Island have spread to the whole world
On June, 27 Russian Green Peace supporters conducted a vigil near by “Credit Suisse” office in Moscow. They demanded to stop financing oil project “Sakhalin-” and invest money into energy-efficiency. Today, on June, 28, indigenous people of Sakhalin will block the roads again in order to stop physically dangerous for nature and for island people project. At the same time there will be another vigil near Credit Suisse Bank headquarters in the USA. Coalition of non-governmental organizations is going to organize a demonstration near Shell headquarters in London, since this company is the main “Sakhalin-2” participant.
Green Peace has passed a letter to Credit Suisse Bank with a claim to prevent financing of oil production at the Sakhalin island. The Bank was offered to consider more promising and ecologically friendly projects. For these purposes the Bank has received a reference-book of russian companies, which produce equipment for renewable sources of energy.
June 27, 2005
Vladimir Putin: Russia will increase its oil production
Drop in oil production is highly connected with the fact that russian oil companies do not pay attention to investments into oil production, exploration, transportation, and oil processing, said Vladimir Putin at the Saturday meeting with leading American businessmen. He told that government was going to support Russian oil companies to increase investments into their development. Also Putin assured that Russia would intensify oil and gas production and export.
Trading volume between Russia and the United States of America constituted 15 billion USD in the year 2004 (according to American estimations).
June 27, 2005
Oil prices stuck above $60 mark
Oil prices are continuing to hover close to their record level of $60.95 as concerns about supply persist.
Uncertainty about the situation in Iran following the weekend's election of a new President is also buoying prices. US light crude fell 46 cents from Monday's closing price to trade at $60.08 a barrel. Brent, the other main contract, rose 94 cents to $59.30. Analysts said that prices stay high in coming months, especially as the peak US summer period is about to start.
› news.bbc.co.uk/2/hi/business/4629493.stm
June 23, 2005
Indigenous people of the Sakhalin Island are against foreign oil companies
Indigenous people of the Sakhalin Island are going to continue protest “The Green Wave” against foreign oil companies, such as “Sakhalin Energy” and “Exon Neftegaz Limited”, because of their influence on the environment. The protest will start on June, 28, and will consist in vigil and stopping of the roads to building sites of the oil companies.
Alexey Limanzo, the chairman of the council of the indigenous people plenipotentiary, said that they had tried all possibilities for negotiations and for now they demand to make an ecological examination, at the expense of the special fund, which is financed by natural resources users.
June 20, 2005
Russian oil industry needs investments
In order to retain oil production at 10.5m to 11m barrels a day, Russia should invest $200m in the industry in the next 7 to 8 years, LUKoil vice president Leonid Fedun told today at the press conference. The current annual investments made by oil companies reach $17bn to $18bn, whereas it is necessary to invest $25bn to $30bn, he said. Approximately 1.5m barrels of oil are exported daily, the official declared having added that it is essential to expand the pipeline system's capacity to 2m barrels a day.
› www.gateway2russia.com/st/art_278581.php
June 10, 2005
Oil production has been recommenced on the shelf today
Today the company “Sakhalin Energy” has announced the recommencement of the oil production and the beginning of the seventh production season on the shelf of the Sakhalin island. Because of the inclement climate of the Okhotsk sea the oil production is conducted during six months of the year, when the sea is cleared from ice. Over the last six production seasons oil was supplied to buyers in Japan, Korea, China, Taiwan, Thailand, the USA, and Philippines. By the end of the production season of the year 2004 total volume of oil which has been extracted since the beginning of the oil production in July, 1999 constituted more than 60 million barrels.
June 10, 2005
“Rosneft” and “Sinopec” have signed an agreement on implementation of concrete oil-and-gas projects in Russia
“Rosneft” and Chinese company “Sinopec” have signed an agreement on implementation of concrete oil-and-gas projects in Russia. According to Mu Shulin, the deputy director of “CNPC” (parent company of “Sinopec”), “Sinopec” is interested in the oil shelves exploitation projects on the Sakhalin island and investments into oil-processing at the Russian Far East. Experts regard this agreement as continuation of the cooperation, which was started half a year ago. That time “Rosneft” received about 6 billion USD for future supplies of 48,8 millions tons of oil till the year 2010. Thus “Rosneft” has replaced “UKOS”, which earlier supplied raw materials to China as a monopolist.
June 10, 2005
Pipes for the Eastern pipeline will be Russian
Semen Vainshtog, the president of the oil company “Transneft”, stated that pipes for the construction of the pipeline “Eastern Siberia – Pacific Ocean (ESPO)” will be provided by Russian producers. “Transneft” has several permanent Russian pipe suppliers, which will provide us with pipes for ESPO”, – he said. Among these permanent suppliers S. Vainshtog has marked out such companies as “Vyucsunsky metallurgical works”, “Chelyabinsk tube works” and “Tube metallurgical company”.
June 7, 2005
“Transneft”: Stake on diversification of routs
The Council of Federation had a meeting today devoted to the issue of “Development of the pipeline system in light of the implementation of Energy Strategy for Russian Federation till 2020”. The main speaker was Semen Vainshtog, the head of the oil- transporting monopoly. He said that currently almost all Russian oil is transported to the Europe, which is “overfed” with oil. Meanwhile, 28 per cents of oil consumption account for Asian-Pacific region, and demand there continues to grow rapidly. S. Vainshtog stated that we need to choose where to supply oil.
Because of its carrying capacity and size there are no analogs in the world to Eastern Siberia – Pacific Ocean pipeline (ESPO). To a certain extent ESPO can be compared with “Trans-Alaska pipeline”, which is three times shorter than Russian pipeline.
According to Vainshtog at the first stage new pipeline will supply 30 million tons of oil a year from functioning oilfields in the Western Siberia. At the second stage new oilfields in the Eastern Siberia will be involved, including Talakin oilfield – the biggest one in Yakutiya. At this stage 24 million tons of oil will come from the Western Siberia and 56 million tons of oil – from the Eastern Siberia and Yakutiya.
The speaker stressed that ESPO pipeline will be entirely located on the territory of Russia, and will not depend on transit states. He pointed out that recently there had been challenges with oil transit through Ukraine and only alternative pipeline routs (through Primorsk and other cities) saved the situation.
He also added that “Transneft” is working on the advancement of the third project that will provide an outlet to the Barentsevo sea and oil export to the North America.
June 6, 2005
Vladimir Putin: Japan has to specify its interest in the Eastern pipeline
The president of the Russian Federation Vladimir Putin stated that he was going to meet with ex-prime minister of Japan, co-chairman of the Council of Sages Ioshiro Mori and discuss challenges of the Eastern pipeline.
V.Putin told: “It's necessary to specify interest of Japan in the Eastern pipeline. We are to understand it. We have rather clear understanding with Chinese partners, even still not everything is decided, but it Japan shows interest, it has to be specified.”
June 6, 2005
Japan is ready to take part in developing of Siberia oilfields
Foreign Minister of Japan Nobutaka Matimura said that Tokio was going to take part in the oilfields development at the Eastern Siberia. Also it was mentioned that Japan is ready to assist in implementation of the pipeline construction to the coast of the Pacific Ocean.
According to Nobutaka Matimura, Russia should provide more information about different projects, especially about their profitability, reports ITAR-TASS.
June 6, 2005
WWF demanded from “Sakhalin Energy” to reject oil platform installation at the whales pasturing zone
World Wide Fund (WWF) demanded from “Sakhalin Energy Investment Company Ltd” (an operator of complex oil-and-gas project “Sakhalin-2”) to reject oil platform installation at the whales pasturing zone. The construction of the platform is planned for the summer, 2005.
WWF reports that on the 2nd of June a dead whale-calf from korean-okhotsk population was found. This population numbers about 100 individuals only. And one month earlier another grey whale died because of having entangled in the fishing net near Japan.
According to WWF mass extinction of the whales can be seen at both eastern and western populations. It will lead to the situation of the year 2000, when some famished whales had appeared.
A year before, in 1999, “Sakhalin Energy” installed its first oil production platform near the forage place of the whales. The installation was accompanied by a number of negative effects on the whales. In this light these sea animals were forced to leave their single forage place.
In the end of summer 2005 “Sakhalin Energy” is going to install its second oil production platform on the Sakhalin island. And again it will be nearby the forage place of the whales.
May 30, 2005
International Scientific and Practical Pacific Offshore Conference and Exhibition will take place in Vladivostok on June 1–3, 2005.
The prospects of offshore exploration and oil and gas industry development and will be discussed at the International Scientific and Practical Pacific Offshore Conference and Exhibition, that will take place in Vladivostok on June 1–3, 2005. The even is organized by the Far-Eastern Gas and Oil Association with support of Plenipotentiary of the President of RF Konstantin Pulikovsky, Russian Ministry of Industry and Energy and Primorsky Krai Administration.
May 30, 2005
Referendum on the question of West-Kamchatka shelf of Okhotskoe sea exploration: the last day to collect signatures.
Today is the last day of the collection of signatures in support of referendum on the question of West-Kamchatka shelf of Okhotskoe sea exploration. As it was reported by “Kamchatka league of independent experts”, 5500 signatures were collected in order for Kamchatka Regional Chamber of Deputies to consider the issue of referendum and set the date when it will be conducted.
May 24, 2005
The growth of Russian oil export is slowing down
According to monitoring results, published on Monday by the Russian Ministry of Economic Development, there is a record of stagnation of Russian oil supplies to international market. As stated in the document, in the first decade of 2005 with the oil prices increase of 41%, oil export growth rate constituted only 0,6%. Therefore, high oil prices bring additional revenues, help increase Stabilization Fund, however their impact on production growth is approaching zero and, taking into consideration inflation rate, is becoming negative.
May 24, 2005
Federal reserve of oil products can help stabilize gasoline prices
The head of Federal antimonopoly service Igor Artemyev has spoken for creation of additional federal oil reserve to stabilize seasonal overfalls of gasoline prices. "We propose to create an additional reserve – around 1,5 million tons of oil products. I think it will be enough to influence seasonal fluctuations of gasoline prices" said Mr. Artemyev.
May 21, 2005
Russian Federal service of environmental, technological and nuclear surveillance requests "Transneft" to justify its choice of the endpoint of oil pipe line.
Russian Federal service of environmental, technological and nuclear surveillance requests "Transneft" to justify its choice of placing pipeline endpoint in Perevoznaya Bay (Pacific Ocean). As it was reported earlier, President administration in response to address of the head of the Russian Academy of Science has ordered the Government to consider the possibility of constructing the Taishet pipeline endpoint near the town of Nakhodka.
May 19, 2005
On May, 19 the 19th Conference on oil-spills prevention and liquidation came to the end
The 19th Conference on oil-spills prevention and liquidation has taken place in Miami, USA on May, 15-19. The major topic for discussion this year was "Prevention, Preparedness, Response and Restoration: Raising Global Standards". The Director of the Sea Protection Institute of the Maritime State University named after G.I.Nevelskoy Sergey Moninets participated in the Conference.
May 19, 2005
WWF – on the oil terminal in Pervoznaya Bay.
Coordinator of projects on especially protected nature areas of Far Eastern office of The World Wildlife Fund Yury Bersenev has stated that bulk-oil terminal in Perevoznaya will put the area around Vladivostok and the city itself into risk. Far Eastern scientists and reporters have visited the potential location of constructing the pipeline endpoint in Perevoznaya Bay. According to Mr. Bersenev, the oil terminal can cause severe damage for the whole Khasan region.
May 19, 2005
Deputy hearings on constructing pipeline from Siberia to Primorye have taken place in Vladivostok.
Deputies of Legislative Assembly, scientists of the Russian Academy of Sciences, environmental protection specialists, who have returned from Primorsk where such terminal was built three years ago, participated in deputy hearings on constructing pipeline "Eastern Siberia – Pacific ocean". As a result of the hearings a draft resolution was developed. Participants recommended the Assembly and Primorski krai administration to continue elaborating legislative base to ensure indemnification in case of oil spills. Deputies also intend to request "Transneft" to create specialized fleet for oil spill liquidation and to allocate funds for strengthening protection of nature areas.
© Sea Protection Institute
Maritime State University named after admiral G.I. Nevelskoy (www.msun.ru), 2005