LUKoil and Chevron see CPC pipeline completed on schedule

Dec 04, 1999 01:00 AM

Two top oil executives said that they expected the Tengiz-Novorossiysk pipeline to be completed on schedule.
Vagit Alekperov, the president of Russia's LUKoil, told that he was certain the Caspian Pipeline Consortium (CPC) would finish its work as planned on June 30, 2001. Richard Matzke, the head of Chevron Overseas Petroleum, also said he expected the project to be completed by the target date. The consortium began laying pipe on November 17 of this year.
For his part, the CPC's Director General Viktor Fyodotov said that he expected the Russian section of the pipeline to be complete by December 2000. Once that part of the pipe is ready, Fyodotov said, the consortium will be able to complete its terminal facilities at the Black Sea port of Novorossiysk. (Work on the new terminal began in May of this year.)
Matzke further noted that the CPC line would be the biggest oil conduit in the Caspian region once it was finished. The 1,580-km pipeline will be able to carry an initial 28.2 million metric tons of oil per year, with annual throughput capacity eventually rising to 67 million metric tons.
The total cost of the project has been officially estimated at $ 2.5 billion, though many analysts believe that $ 4 billion or more may be required. The CPC's investments in the project this year are expected to reach $ 700 million, and next year's budget has been set at $ 1.33 billion. Both Chevron and LUKoil are shareholders in the CPC, which groups three governments and eight oil companies.
The Russian government, also a shareholder in the CPC, is a strong supporter of the project. Russian Prime Minister Vladimir Putin noted last week that the CPC's conduit will be the first pipeline capable of bringing Caspian oil to a port from which it can be exported directly to the world market.

Source: NewsBase
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