Rosneft approves acquisition of Vostochny oil terminal

Apr 26, 2003 02:00 AM

The board of directors of Russian state oil major Rosneft approved at its meeting buying 100 % in the Vostochny oil terminal near the Vostochny seaport in the Far Eastern city of Nakhodka for $ 18 mm, Rosneft said.
The construction of the oil terminal is not yet complete and the necessary additional investment is estimated at $ 30 mm.

The oil terminal has the right to a 49-year lease of about 440,000 sq km of land. The current state of the terminal allows for the completion of its construction in the near term, after which it will be able to move 4 mm tpy of light oil products with the possibility of raising it to 8 mm tons later.
Rosneft owns an oil product terminal, Rosneft-Nakhodkanefteprodukt, in the region with the capacity of about 6 mm tpy. But the ongoing upgrading of the company’s Komsomolsk refinery based in the Far Eastern city of Komsomolsk, and the limited capacity of the Rosneft-Nakhodkanefteprodukt terminal have prompted Rosneft to purchase the new facility, Rosneft said.

Additionally, the new purchase is justified by the development of East-bound oil transportation infrastructure in the Eastern Siberia and growing production of oil products in the region by other companies, Rosneft said.

Source: The Russia Journal Daily