Fluor, Lukoil Neftegazstroy to build Russian oil products export terminal

By OGJ editors

HOUSTON, Dec. 16 -- Lukoil Neftegazstroy (LNGS), the construction affiliate of Russia's OAO Lukoil, has tapped Fluor Corp. to construct a 220,000-b/d petroleum products and crude oil export terminal on Vysotsky Island on the Gulf of Finland 18 miles north of Primorsk near St. Petersburg.

The terminal will enable Lukoil to export more crude oil and products annually by December 2004, when the terminal is scheduled for completion. About 50,000 b/d will be reserved for crude oil, with the balance to be products. Capacity for about 140,000 b/d is expected to be available by 2005. Crude and products produced by Lukoil will be delivered to the terminal by rail and river (OGJ, Oct. 6, 2003, p. 62).

Fluor will perform turnkey engineering, procurement, and construction for the terminal. The project includes two tank farms, a marine jetty, a railroad station, and dredging in the Gulf of Finland to allow for the passage of double-hulled crude and product ice-breaker tankers.

Fluor also has assisted in obtaining financing for the $300 million project, which will be owned by RPK-Vysotsk Lukoil II—the special purpose company established for that purpose. Dallas-based HBK Fund LP provided a 12-year, $225-million loan, and the US government agency Overseas Private Investment Corp. (OPIC), provided a $130-million loan guarantee, while Credit Suisse First Boston arranged financing and provided a $75-million loan guarantee.

Under a technical services agreement, Fluor already has developed the project's environmental impact assessment, assisted in preparing health, safety, and environment documentation, and recommended design modifications to ensure that the project complies with international environmental and safety standards, including those of the World Bank.

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