Tatneft to Seek Up to $1.2 bln for Refinery

Vladimir Soldatkin, Reuters
 
Russian oil firm Tatneft will seek $1-$1.2 billion additional financing this year for its Nizhnekamsk refinery project, a company official said on Tuesday.

"This year we've been still disbursing up to this point under the credit facility we secured last year of $2 billion to finance construction of the refinery," Vasily Mozgovoy, assistant to the general director, said on a conference call.

"We're looking at raising additional capital for that. We can look at approximately $3-3.2 billion total investment into phase one by the end of this year," Mozgovoy said.

A company spokesman confirmed Tatneft would be seeking to raise the difference between the value of last year's credit facility and the total investment in phase one this year.

Mozgovoy also said capital expenditures to support Tatneft's production levels in Tatarstan would amount to around half a billion dollars this year -- roughly the same as in 2008.

The first phase of the refinery, in the Tatarstan republic east of Moscow, is expected to have an annual capacity of 7 million tonnes.

Tatneft is controlled by the regional administration of the Republic of Tatarstan.

The entire refinery project includes an aromatics complex with a capacity of 151,000 tonnes a year in paraxylene, a naphtha hydrotreater with 1.1 million tonnes capacity, a kerosene hydrotreater of 500,000 tonnes capacity and a diesel-hydrodesulfurisation facility of 1.6 million tonnes capacity.

- Copyright 2009, Reuters. All rights reserved.

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