Company news in June 2004 | |||
TNK-BP to Put up $8 Million to ESGC for Irkutsk Region Gasification in 2004
In 2004, TNK-BP is going to accommodate a loan of $8 million to East Siberian Gas Company OJSC (ESGC, Irkutsk Region, an operator of the gas supplies from the Kovykta gas and condensate field to the marketplace), Mr. Alistair Fergusson, TNK-BP''s Vice President, New Gas Extraction and Sales Project Development, informed at a news conference in Irkutsk on Friday. In his words, this money will be channeled towards funding of work for the Irkutsk Region gasification this year. He noted that drafting of loan documents would be finalized in the near future. As reported earlier, ESGC''s 2004 budget will amount to $8.9 million. Over 85% of costs will be accounted for by the production program implementation. The estimated budget includes costs of engineering and technical prospecting and development of working projects on the gas transportation system and the gas-processing facilities. This work will start in June/July 2004, based on the results of finalized investment feasibility study, and will create a foundation for construction start-up in 2005. According to Mr. Fergusson, the project''s investment feasibility study will be ready by July. By the end of 2004, ESGC plans to hold a tender for the turnkey contractor to construct the gas pipeline from the Kovykta field to Sayansk. The core objective for ESGC is to coordinate efforts aimed at the regional gasification project implementation. The project envisages construction of a 550+ km trunk pipeline along the Kovykta/Sayansk/Angarsk/Irkutsk route as well as a gas-processing facility and a condensate-processing plant. Total capital expenditures are estimated at $676 million during 2004-2034, including $480.4 million in 2004-2006. The first gas supplies from the Kovykta field to the Irkutsk Region market may start in 2006 already, in the amount of 300 million cubic meters. Supplies to the regional market are expected to reach 2 billion cubic meters by 2007, and 2.2 billion cubic meters by 2009. The idea is that the project''s payback period will amount to 8-9 years if gas prices stand anywhere from $45 to $ 50 per 1,000 cubic meters. East Siberian Gas Company OJSC was founded in March 2004. The Irkutsk Region and TNK-BP have become its shareholders on a parity basis.
Source: INTERFAX