Largest Russian oil companies sign memorandum

Today in Moscow, LUKoil President Vaghit Alekperov, Sibneft President Yevgeny Shvidler, Executive Director of Tyumen Oil Company (TNK) German Khan and Chairman of the Executive Board of YUKOS Mikhail Khodorkovsky have signed a memorandum of understanding concerning the question of constructing an oil pipeline system to transport oil through the seaport terminal in Murmansk.

The construction of a pipeline is planned for 2004-2007. The expected capacity is 80m tons of oil. According to preliminary data, the project's total cost may be from $3.4bn to $4.5bn. The total tax payments to budgets, in the event of the project's implementation, will amount to $9.2bn, including $4bn to the federal budget and $5.2bn to regional budgets.

During the construction some 6,000 new jobs are to be created and some 2,000 new jobs will be created for the pipeline's operation.

Currently the parties are considering two routes of the pipeline: a 3,600-kilometer route Western Siberia-Ukhta-Murmansk and a 2,500-kilometer route Western Siberia-Usa-Murmansk (via the White Sea).

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&to=http://www.lukoil.com' target=_blank>LUKoil

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