02-02-00 Yukos announced that it had signed a working agreement with Transneft, the Russian state oil pipeline operator, on construction of a pipeline to China.
The deal will be formalized at the upcoming Russian-Chinese summit, Yukos' press service said. The two companies began studying the project after the signing of an agreement with the Chinese National Petroleum Corporation (CNPC) in February of 1999.
This deal provides for the partners to complete a feasibility study on the project by the end of this year. A joint working group set up by the two companies turned in a preliminary version of the study last month.

At present, Yukos and Transneft say the 2,400-km pipeline could be completed in 2004. The conduit would be able to carry up to 30 mm tons of crude oil per year. Transneft would serve as the operator of the pipeline.
The cost of construction has been estimated at $ 1.7 bn, but Yukos said last week that no arrangements had yet been made for financing of the project. The parties areat present concentrating on the feasibility study, a company spokesman said, adding that Yukos was already prepared to finance its own share of the study costs.