Russian oil firms agree to fund pipeline feasibility study

Russia's five largest oil companies have given the green light to a feasibility study on a pipeline that would position Russia as a strategic supplier of crude to the US, sources at two of the companies said.
The companies signed a memorandum on financing the feasibility study for the multibillion-dollar pipeline, which would run from western Siberia to the ice- free Arctic port of Murmansk.

Yukos, LUKoil Holding, Tyumen Oil Co. and Sibneft were the original parties to a memorandum of understanding signed in November. Sources in the consortium say Surgutneftegaz signed on with the four companies to help fund the feasibility study. Back in November, it had only expressed interest.
In November, the consortium said the feasibility study would be ready in 2004 and that the pipeline, expected to have a capacity of 3 mm bpd, could be commissioned in 2007.

Russia has rapidly increased crude oil production during the past three years, but expansion of the pipeline infrastructure has lagged far behind, creating back-ups in the export system. Together with state pipeline monopoly Transneft, Russia's privately held companies have taken the initiative and put forward pipeline plans for public discussion.
The Murmansk pipeline project is targeting the US, which is looking to ease its dependence on Middle East supplies. Russian companies send crude directly to the US only intermittently, because Russia doesn't currently have an ice-free port that can handle super-large tankers for transatlantic shipments.