VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Transcript of the beginning of the meeting:
Vladimir Putin: Good afternoon,
Today, we are going to discuss on the construction of the new Eastern Siberia-Pacific (ESPO) oil pipeline.
We remember that the decision on its construction was made in late 2004, but practical work started in the spring of 2006. More than 1,000 km have been built in a year and a half. This is the first stage. But even the start of this project's implementation is allowing us to use this part of the pipe.
I would like to recall that this not only creates additional opportunities for our oil companies, that is, new export routes. We have always proceeded from the premise that this project will create the necessary additional foundation for comprehensive socio-economic development of Eastern Siberia and the Far East. These regions abound in natural resources but need special attention of the government, more money, and higher business activity. This is exactly the project which will resolve this task.
While carrying it out, we encountered a number of difficulties. One of them is lack of the necessary infrastructure. I know that Transneft and other oil companies had to resolve numerous problems, such as securing energy supply, and building the required roads, both temporary and designed for further use.
Needless to say, environmental protection was also quite a problem. It is enough to recall the decision to obviate Lake Baikal. It required additional spending, but I consider it justified. After all, this spending was not really huge.
In general, we showed a good example of careful attitude to nature, and we will be given credit for that. I am sure that the future generations will appreciate this decision. On the whole, we did well in resolving this problem technologically.
Let me repeat that this is only the beginning of this work, the first stage. Much still lies ahead.
Only recently, we visited the Far East and watched the construction of the oil terminal. In general, I am content with its rates and quality. But let me remind you that eventually, as we develop new deposits in Eastern Siberia, we will have to complete the construction of the pipeline to the Pacific.
Let us discuss all these questions in detail today. Let us start with the implementation of the first stage. As far as I understand, Transneft and other oil companies are ready to put this section into operation.
Nikolai Tokarev: Mr Putin, I would like to report that a 1,105km-long section from Taishet to the Talakanskoye deposit has been built, and is ready for commissioning in the reverse flow regime. Everything has been done, and the tests have been conducted. We can now start to pump oil from the Talakanskoye deposit, which Surgutneftegas will put into operation together with this section. Before the year expires, we are planning to supply the Angara Oil Refinery with 220,000 metric tons of oil.
We could not miss this opportunity to use the pipe. However, it is more profitable both for oil workers and Transneft. It is also a plus for the regions which will receive taxes once this section is commissioned.
On the whole, on the ESPO project, we have built a section from Skovorodino to Aldan. They are finishing linear pipeline portions on oil pumping stations.
Vladimir Putin: How long is it?
Nikolai Tokarev: About 1,000 kilometres. Its construction will be completed by the end of the year. Oil field surface facilities will come next. Now the main work on the project is carried out in South Yakutia. This section is 650 km long. It is one of the most difficult sections because it has no transportation infrastructure at all -- neither rivers nor roads. Equipment and people are being delivered by corduroy or ice roads, or by cargo helicopters.
Subsequently, we will concentrate on the following section - the oil-loading terminal in Skovorodino and Kozmino, the sea oil-loading terminal.
Vladimir Putin: Is work conducted on the Chinese side?
Nikolai Tokarev: We have drafted a project for building a link to China. The Chinese had invested $37 million into the project. We have now submitted it for government expert appraisal. It will be completed in the near future. We have reported to our Chinese partners that this work has been done. They told us that they have prepared a feasibility report for 960 km on their territory up to Daqing.
Vladimir Putin: From Skovorodino to the Pacific shores. Now we will deliver oil there...
Nikolai Tokarev: By railroad.
Vladimir Putin: By railroad, bearing in mind that transfer will be made here, on the Pacific shore. How much oil do we need to make the pipe's construction profitable?
Nikolai Tokarev: In general, the ESPO pipeline's capacity is 80 million metric tons, counting the Chinese leg. This volume has been provided for. The oil flow envisages a consistent increase in the pipe's capacity to reach this figure by 2020. At the first stage, 30 million metric tons will be delivered to Kozmino. Today, oil workers will guarantee this amount of oil for the pipe.
Vladimir Putin: How much money have you spent to develop the Talakanskoye deposit?
Vladimir Bogdanov: Mr Putin, in less than two years and a half, shown in the slides and on the map, our employees have carried out enormous amount of work, and spent 101.9 billion roubles. Today, we are buying about 47 billion roubles worth of equipment. We have received credits and concluded contracts for the delivery of equipment for the development of the Talakanskoye and other deposits in Eastern Siberia.
It is very important that we are indeed the trailblazers in this sixth Russian oil territory with great prospects. We are very happy about this. Eastern Siberia has been studied by a mere 7%. In less than two years and a half, we have discovered a deposit with more than 100 billion cubic metres of gas. Its follow-up exploration is still going on. We have also found two oil deposits - Severo-Talakanskoye and Vostochno-Anenskoye.
You are absolutely right. We are developing a new oil and gas region, but it is even more important that we are developing a remote and unsettled territory. Life there has changed completely after we came. Before, in 2004, the average salary of 6,000-7,000 roubles was paid with delay of three to four months. Now the average salary is 66,000 roubles. Out of 7,200 workers, more than 1,000 are locals. Every year, we pay for the education of 40 to 50 students. We have invested about 2 billion roubles into infrastructure facilities. Tomorrow, we will open an agricultural academy in Yakutsk. We have started building a school, a kindergarten, and an airport, to name but a few. On the whole, we have drafted quite an extended social programme. About 12 billion roubles will be spent on the local residents and our employees until 2020.
This is not just investment. We believe that we will make more discoveries, that the region will continue to develop. It should be comfortable for the population. Therefore, Mr Putin, we have carried out all the tasks which were set before us. Tomorrow or the day after tomorrow we will inaugurate our section. The first industrial reverse flow oil - today we produce 4 metric tons of oil per day - is already started filling in the pipe.
Vladimir Putin: Mr Sechin, what is the attitude of other companies to this project? Can we count on the pipe reaching its full capacity mentioned by Mr Tokarev, that is, 80 million metric tons?
Igor Sechin: Mr Putin, in line with your instructions and the latest assignment, which you gave us when visiting ESPO facilities in Kozmino, we have worked out the resources for the pipe. At the first stage, oil will be pumped from Western Siberia. Today, the Talakanskoye deposit will start supplying the main pipeline. Active work is going on at the Verkhnechonskoye deposit, which will also be commissioned in the near future. TNK, BP and Rosneft are working at it. Next year, we are planning to put into operation the Vankorskoye deposit, which is being developed by Rosneft. These deposits make us confident that there will be enough oil for the ESPO pipeline.
Vladimir Putin: How much oil are you planning to get at Talakanskoye?
Vladimir Bogdanov: We will get 7 million metric tons at Talakanskoye, but next year we will put into operation the Anenskoye deposit, and later, in 2010-2011 the Vostochno-Anenskoye and Severno-Talakanskoye. I think they will produce about 10 million metric tons. Considering that the Verkhnechonskoye deposit with 220 million metric tons is twice bigger than Talakanskoye, plus 500 million metric tons at Vankorskoye, I can say with confidence that we will be able to receive from 40 million to 45 million metric tons of oil from the deposits of Eastern Siberia. Our deposits will produce about 10 million metric tons.
