RussNeft to Invest $50 Million in Orsknefteorgsintez
Today, on January 17 there were held a meeting of Governor of the Orenburg region Alexei Chernyshov and President of Oil Company RussNeft OAO Mikhail Gutseriev and negotiations between the members of the regional government and the management of the Company which touched upon interaction of the parties in the matters of social and economic development of the Orenburg region, IA Regnum correspondent was informed at the press-service of the Governor.
On December 22 of 2005 Oil Company RussNeft assumed responsibility and operational control over the assets bought from TNK-BP of which Orsknefteorgsintez OAO, Orenburgnefteprodukt OAO, Neftemaslozavod OAO are found in the Orenburg region.
Alexei Chernyshov emphasized that these enterprises were important constituents of the regional economy. Orsknefteorgsintez is per se the local economic mainstay; therefore the attitude of RussNeft towards the future of the enterprise is important for the Orenburg region. The head of the region noted with approval that the management of the holding Company was going to develop Orsknefteorgsintez as a basic oil refining element of the Company, invest funds in its further reconstruction, and increase the depth of the oil processing.
The Governor informed that in February a cooperation agreement between the administration of the region and the Company should be concluded. The cooperation agreement will specify mutual commitments of the parties including participation of RussNeft in joint financing of social programs. He was referring first of all to the construction of sport facilities in the region.
Mikhail Gutseriev said that upon finalizing the cooperation agreement his Company was going to submit its investment program of developing Orsknefteorgsintez to Governor Alexei Chernyshov.
“In 2006 we are going to invest $50 million in the enterprise which is aimed at bringing the output of the refinery in compliance with the international quality standards. In the coming five years we plan to annually invest $50 million in its development, increase the depth of oil processing and operate the refinery close to its full capacity, i.e. 5 or 6 million tons of crude oil a year. The Orenburg region is the basis for the development of the Company’s oil refining complex; therefore our cooperation with the administration of the region is long-term and of strategic character”.
Alexei Chernyshov said the government of the region was going to support the Company in its operations in the Orenburg region provided the conditions of the upcoming agreement were fulfilled.