Surgutneftegaz to participate in Western Siberia - Murmansk pipeline

The Surgutneftegaz oil and gas company confirmed its intention to participate in the project of construction of the Western Siberia - Murmansk pipeline, CEO of the YUKOS Oil Company Mikhail Khodorkovsky reported to journalists at a press conference today. According to him, General Director of Surgutneftegaz Vladimir Bogdanov confirmed the wish of the company to participate in this project.

Today in Moscow, LUKoil President Vaghit Alekperov, Sibneft President Yevgeny Shvidler, Executive Director of Tyumen Oil Company (TNK) German Khan and YUKOS's CEO Mikhail Khodorkovsky signed a memorandum of understanding concerning the construction of an oil pipeline system for oil transportation through the seaport terminal in Murmansk.

The preparation of the DON project is to be completed in April 2003; in 2003-2004, the development of the feasibility study and other documents will be underway. The pipeline construction is planned for 2004-2007. It is to be launched in 2007. The pipeline's capacity is expected to be 800 million tons. According to preliminary data, the cost of the project fluctuates between $3.4bn and $4.2bn depending on the route of the pipeline.

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