Uchenna Izundu
International Editor
LONDON, Jan. 24 -- Urals Energy PCL plans to increase oil production to 30,000 b/d by 2012 at Dulisminskoye field in Irkutsk Oblast, Eastern Siberia.
Urals received a $130 million loan from Standard Bank PLC and tax breaks from the Russian government to kick-start the second development phase. Urals will not pay any tax on production from Jan. 1, 2007, through Dec. 31, 2016, and will save $308 million. Russia also has approved Urals' development plan for the field.
Production is being expanded to 12,000 b/d of oil from 900 b/d by yearend 2008. For the first phase, Urals is working on infield development drilling and construction of additional processing and transportation infrastructure from the field to the centralized oil depot at Ust-Kut. The new East Siberian Pacific Ocean pipeline, being built in phases, is expected to be operational this year.
Increasing production to 30,000 b/d from 12,000 b/d will require a permanent pipeline to either the river port and railway terminal at Ust-Kut, or to a planned pump station on the ESPO pipeline.
Urals will sell oil to Pacific Rim consumers.
Contact Uchenna Izundu at [email protected].
