Total Price for TNK-BP assets Acquired by RussNeft and Krasnodar Refinery to Come to $1 Billion

“$1 billion were paid for all,” said M.Gutseriev adding that the Krasnodar Refinery could not be expensive.
President of RussNeft noted that presently the company was not going to buy out the share of the minority holder of TNK-BP assets. According to M.Gutseriev, in the near future RussNeft will not make an offer and the minnow are going to receive their dividend earnings.
As Prime-TASS reported earlier, on December 21 TNK-BP and RussNeft completed the deal in which RussNeft came into possession of Saratovneftegaz, Orsk Refinery, Orenburgnefteprodukt, and Neftemaslozavod OAO.
On the same day it was reported that RussNeft and the shareholders of ‘Krasnodar Oil Refinery –Krasnodarekoneft’ had come to an agreement in principle on the sale of 75% stake of the oil refinery. The feed capacity of the refinery is 3.1 million tons a year.
According to M.Gutseriev, RussNeft has developed a step-by-step program of debottlenecking of the refinery. In the framework of the short-term program of RussNeft logistics are to be improved. In the medium term restructuring is to be done. And in the long term the refinery is to be updated to improve crude oil conversion to 70-80 percent.
The oil production of Saratovneftegaz OAO comes to 42 thousand barrels per day of oil equivalent with proved and prospective reserves of 163 million barrels.
Orenburgnefteprodukt OAO owns 101 gas-filling stations and 37 oil tank farms.
The template capacity of Orsknefteorgsitez /Orsk Refinery processes 6.7 million a year /136 thousand barrels per day/; production volume of petroleum products was 1.758 million tons in the first six months of 2005.
The template capacity of Neftemaslozavod OAO is 100 thousand tons; anticipated volume of lubes in 2005 is 30 thousand tons.