Orenburg Region Government and RussNeft to Finalize Cooperation Agreement in February
A cooperation agreement between the government of the Orenburg region and RussNeft is going to be finalized in February of which is said in a statement of RussNeft summarizing the meeting between head of the company Mikhail Gutseriev and Governor of the Orenburg region Alexei Chernyshov.
As Prime-TASS informed earlier, on December 22, 2005 RussNeft assumed operational control over the assets bought from TNK-BP of which Orsknefteorgsintez OAO, Orenburgnefteprodukt OAO and Neftemaslozavod OAO are found in the Orenburg region.
According to the statement, the head of the region pointed out that the management of the holding company was going to develop Orsknefteorgsintez as its basic oil refining vehicle, invest funds to continue the reconstruction of the enterprise, increase volumes of oil processing and depth of refining
In his turn M.Gutseriev said that concurrently with conclusion of the agreement the company was going to hand the Investment program for Orsknefteorgsintez development over to Governor A.Chernyshov
In 2006 RussNeft intends to invest $50 million in the enterprise in order to bring the output of the refinery in compliance with the international standards, increase the depth of processing and operate the refinery almost to its full capacity, i.e. 5 or 6 million tons a year.
In the structure of RussNeft there are 30 producing entities, 3 oil refineries, 2 transport companies, and a joint retail network of gas-filling complexes. The entities of the company are found in 17 regions of Russia and CIS. The total recoverable reserves of RussNeft exceed 630 million tons and its annual oil production has reached 17 million tons.