Investors deliver transportation system project for Northern Territories deposits
Russia-based Lukoil and Arkhangelskgeoldobycha and US-based Conoco will build a crude oil transportation system to provide the Nenets Autonomous Okrug in Russia's Arkhangelsk region with crude oil from the Northern Territories fields in the Timan Pechora province.
Russia's OAO LUKOIL and OAO Arkhangelskgeoldobycha and US-based Conoco Inc., announced plans Monday to build a pipeline to supply Russia's Nenetski Autonomous Okrug.
The proposed system is expected to move up to 7.5 million tonnes/year of oil from the Northern Territories fields. It also whould allow for additional production of crude from other fields in Timan Pechora province.
The oil companies considered five routes for the line, including routes via Gorelka Cape, Pechora Bay, Varandei, Indiga, and the Baltic Pipeline System. Based on economic evaluations, Gorelka Cape and Varandei were recommended for further consideration.
The project includes construction of land and marine pipelines. A stationary ice-resistant oil terminal also will be built. Oil will be shipped in 20,000-120,000 dwt ice-breaking tankers.
Lukoil, Arkhangelskgeoldobycha, and Conoco are partners in the Northern Territories project, which includes 1.2 million acres in the Timan Pechora region above the Arctic Circle. The giant undeveloped Yuzhno Khilchuyu field lies in the territory. Lukoil will hold a 60% interest in the Northern Territories project and Conoco the remaining 40% (OGJ Online, June 6, 2000).