Surgutneftegaz to Invest USD 1.1 Billion in Oil Refinery in Leningrad Region - 8 April, 2003

The construction of an oil port in Batareinaya Bay and a deep oil-refining complex in the town of Kirishi (both in the Leningrad Region) will be completed by the end of 2004. As a Rosbalt correspondent reports, this is specified in an agreement which was signed by Governor of the Leningrad Region Valery Serdiukov and President of Surgutneftegaz Vladimir Bogdanov today at the international forum Russian energy: regional aspects, which is taking place in Saint Petersburg.

Mr Bogdanov told journalists that USD 400 million would be invested in the first stage of construction of the oil terminal in Batareinaya Bay. He added that investment in the deep oil-refining complex would come to USD 700-750 million. He stressed that 'construction of the two facilities should be completed simultaneously. Otherwise we won't be able to export oil products from Kirishi.'

Mr Serdiukov told journalists that the new oil-refining complex would raise the total volume of oil refined at the Kirishi oil refinery from 18 to 24 million tonnes a year. 'Construction of the new complex will not only increase the volume of oil refined but also the depth at which it is refined,' the governor emphasised. He also said that the agreement anticipates the 'active participation of Surgutneftegaz' in the construction of another oil refinery in Primorsk together with Rosneft. This refinery is expected to process 6-8 million tonnes of oil a year, according to the governor. As Mr Bogdanov explained, construction dates for the oil refinery in Primorsk have still not been specified.