RussNeft Intends to Build a Refinery in Bryansk Region.
NK RussNeft OAO is considering the possibility of constructing an oil refinery in the Bryansk region under project financing. As reported by AK&M, the mass media came to know about it from RussNeft Vice-President on Economics and Finances Olga Prozorovskaya.
She reminded that in June 2005 the company commissioned the oil loading terminal in the Bryansk region. The terminal is designed to annually transship 5 million tons of crude oil to be subsequently increased up to 7 million tons. O.Prozorovskaya also said that it could be expedient for RussNeft to build an oil refinery next to the terminal as it would allow getting more economic efficiency.
The vice-president of RussNeft said that at the present moment it was difficult to talk about specific time constraints of the oil refinery project, as the company needed time ‘to get firmly established’. At the same time she didn’t rule out that the project could be carried out at the expense of project financing. One of the options could be financing based on the security of the refinery shares. She informed that in any case it was going to be “an all-sufficient pay-back project keeping the deft burden off the company”. According to the vice-president of RussNeft, the current debt burden of the company amounts to $10-11 per one ton of extracted crude oil.