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November 10, 2007
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Home / Issue Archive / 2007 / March #3 / Semyon Vainshtok Tells OGE Transneft Prepared to Build BPS-2, Govt Decision Pending

№ 3 (March 2007)

Semyon Vainshtok Tells OGE Transneft Prepared to Build BPS-2, Govt Decision Pending

The Pipeline Transport 2007 conference which focused on the ongoing projects of Russian pipeline monopoly Transneft such as the East Siberia – Pacific Ocean, BPS-2 and Burgas-Alexandroupolis pipelines concluded today in Moscow. Among other major issues raised at the forum were Transneft’s recent merger with Transnefteproduct and its achievements which were summed up by Transneft’s president Semyon Vainshtok in his opening speech.

By Sergei Balashov

“Our company is developing technically and economically, we’re improving our structure and these processes are setting the pace for other industries and other companies; we’re serving as an example to follow for them,” said Transneft president Semyon Vainshtok. “We didn’t just reach the figure of 140 mil tons of annual exports which was set as our goal in the early 90s, today our export capacities are twice as large,” he added.

Speaking of the East Siberia – Pacific Ocean pipeline, which is one of Transneft’s major projects, Vainshtok said that it’s a “leap forward” also noting that “it’s going to take 5 years before the upstream industry will be developed enough to get on the same level with this project.” Deputy Minister of Energy and Industry Andrei Dementiev vouched for that stating that “pipeline transportation should be ahead of other industries,” whilst admitting that “the transportation system is still not developed enough.”

Dementiev pointed out preserving and advancing the achieved level of development as the priorities of the industry.

Semyon Vainshtok also commented on the Unecha-Primorsk pipeline project, which is planned as the second leg of the Baltic Pipeline System. If built, it will allow redirecting half of the 100 mil tons of oil transported annually through the territory of Belarus to the EU. The Government is due to approve the proposal which has already been put forward by the Industry and Energy Ministry.
“If the Government decides in favor of building it, we will carry out this decision; we have drilled 6,000 wells, we have worked very hard on précising the route of the new leg of the Baltic Pipeline System, we have worked on all the logistic problems we might have and we already know how to solve them. We’re ready and everything depends on the Russian Government’s decision,” said Vainshtok answering OGE’s question on the current status of the new pipeline.

One day before the conference started Russian President Vladimir Putin signed a decree to merge Transneft and Transnefteproduct, a company which transports oil products. This move is aimed at boosting the efficiency of the Russian pipeline transportation system. Semyon Vainshtok offered his comments on the deal saying that Transnefteproduct would be fully incorporated into Transneft. When asked about the future of Transnefteproduct’s management he asserted Transneft would most likely need the services of about 10-11% of TNP’s managers.

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