Urals gets Transneft approval for ESPO line tie-in

Urals Energy said it received approval from Russia's state-run OAO Transneft to build a pipeline tie-in from its Dulisminskoye field to the ESPO pipeline.

Oct 11th, 2007

Eric Watkins
Senior Correspondent

LOS ANGELES, Oct. 11 -- Urals Energy, Nicosia, said it received approval from Russia's state-run OAO Transneft to build a pipeline tie-in from its Dulisminskoye field to the Eastern Siberia Pacific Ocean (ESPO) pipeline.

Following approval of proposed technical designs and projected construction work, Urals said it intends to commence field preparation work in the fourth quarter.

The Dulisminskoye field in Eastern Siberia is estimated to have 464 million boe, and is projected to produce 30,000 b/d by 2011. First oil from the field is expected to flow into Transneft's ESPO in the first half of 2009.

In late September, Russia's Natural Resources Ministry dropped accusations of falsifying hydrocarbon estimates against Urals Energy.

Following an appeal by Urals, the ministry working group confirmed estimates supplied by the company to the State Reserves Commission exceeded the DeGolyer and MacNaugton estimate by approximately 30%.

Urals expects production to reach a minimum of 12,000 b/d of oil by the end of 2007, instead of its previously announced target of 15,000 b/d which it now expects to reach by mid-2008. Urals' output was reduced by a disappointing performance at its onshore field on Sakhalin Island and by repairs to the pipeline used to transport oil from its Dulisminskoye field.

Contact Eric Watkins at hippalus@yahoo.com.

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