Transneft Seeks $2 Billion For Purpe Pipeline

March 29, 2010

Transneft has asked the government to provide $2 billion to build the Zapolyarny-Purpe oil pipeline in Siberia. Transneft representative Igor Demin said the company does not have sufficient funds of its own to finance the project and does not want to use credit, k2kapital reports. The pipeline would link fields in Yamal to the trunk pipeline.

Demin announced one other possible way to fund the project saying oil companies could “get together and pitch in”.

The government is the main shareholder in Transneft and owns all of the company’s ordinary shares. Privileged shares have been issued for 25 percent of the authorized capital.

As reported earlier, Transneft’s investment program for 2010 was trimmed to 190-200 billion rubles from last year’s 217 billion rubles.

Transneft operates 50,000 kilometers of oil pipeline and transports 93 percent of oil produced in Russia.

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