Urals Energy granted access to ESPO Pipeline

Nov. 14, 2006
OAO Transneft has authorized Urals Energy Public Co. Ltd.'s Dulisma oil field to be connected to the planned East Siberian Pacific Ocean (ESPO) Pipeline.

By OGJ editors
HOUSTON, Nov. 14 -- OAO Transneft has authorized Urals Energy Public Co. Ltd.'s Dulisma oil field to be connected to the planned East Siberian Pacific Ocean (ESPO) Pipeline.

Dulisma field, 350 km northeast of Ust-Kut, is expected to produce 12,000 b/d by yearend 2008, and production is expected to reach 30,000 b/d by 2011.

Urals Energy plans to sell the oil to Pacific Rim consumers, probably China.

China and Russia are studying construction of an oil pipeline spur from Skovorodino to the Chinese border. The spur would be part of ESPO Pipeline connecting eastern Siberian oil deposits with an export terminal on Russia's Pacific coast (OGJ Online, Oct. 26, 2006).

Urals Energy said it would soon begin project design work for the Dulisma-ESPO interconnect, commencing procurement of pipe and other facilities by April 2007.

The ESPO line, which will be built in phases, is expected to start delivering oil in mid-2008.

Interim field production prior to connecting Dulisma to the ESPO line will continue to be transported to Ust-Kut via a temporary pipeline operated by an adjoining producer, Urals Energy said.