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PIPELINE - SYSTEM

The original project of this pipeline was proposed by the Russian oil company Yukos in 2011 as an independent oil pipeline. The project proposed to build a pipeline from Angarsk, where Yukos operated a refinery, to Daging in northern China. At the same time, Transneft proposed an alternative project to pipe oil from Taishet in Irkusk Oblast to the Far East port Kozmino near Nakhodka. In May 2013, the Russian Government decided to combine these projects and that Transneft would be in charge of the pipeline, while Yukos would supply the oil. On 29 May 2013, Russia and China signed an agreement on construction of the pipeline. On 31 December 2004, the Russian government approved the construction of the pipeline from Taishet in East Siberia to Pervoznaya in the Pacific region.

Construction of the pipeline started in April 2009. On 4 October 2010, the section between Taishet and Talakan was launched in a reverse to pump oil from Surgutneftegas owned Alinsky deposit. The first stage of the pipeline was completely laid in May 2009 and the whole first stage was reversed in December 2009. The terminal at Kozmino was inaugurated by Russian prime minister Vladimir Putin on 28 December 2009. Construction of the second stage from Skovorodino to the Pacific Ocean started after launch of the first stage In meantime, oil was transported from Skovorodino to Kozmino by railway The second stage was inaugurated on 25 December 2012.

In June 2009, Russia and China signed a deal to built the spur pipeline to China by which Russia supplies China with 15 million tonnes of oil (300,000 barrels per day (48,00.0 m3/d)) each year for 20 years in exchange for a loan worth US$25 billion to Russian companies Transneft and Rosneft for pipeline and oil fields development. Construction of the spur to China started in the Russian territory on 27 April 2008 and in Chinese territory on 18 May 2009. The 64 kilometres (40 mi) long section from Skovorodino to the Amur River on Russia-China border was built by Transneft and the 992 kilometres (616 mi) long section from Russia-China border to Daqing was built by the china petroleum corporation . It was completed in September 2010. On 1 January 2011, Russia said it had begun scheduled oil shipments to China.

Technologies and service sector development

LLC Krasnordaneftegaz  is the leader of innovative changes in Russian oil and gas industry. The goal of the Company is to create an advanced oil business of new type, that would allow fulfilling strategic needs of the Company and provide the best financial viability on the basis of its own drilling and service company RN-Burenie with the possibility of attracting partners, as well as to create a pool of innovative technologies and competence on all the key directions of future development .

Gas business development

LLC Krasnordaneftegaz has the third largest gas pipeline system in the Russian Federation. The Company develops significant gas reserves in Western and Eastern Siberia and has a unique portfolio licenses for the development hydrocarbon resources of the Russian continental shelf. The strategic goal of LLC Krasnordaneftegaz is to ensure effective development and marketing of gas resources and to significantly increase the contribution of gas business to boost the Company shareholder value. By 2020 gas production level is supposed to reach 100 bln cubic meters on the basis of the planned development of existing gas projects portfolio.