Transneft President Nikolay Tokarev took part in the meeting of the Advisory Board, Graduate School of Management Institute, St Petersburg State University, in Strelna settlement. Following the event, he answered a number of questions asked by journalists.
On cutting petroleum supplies from Russia to Belarus
Nikolay Tokarev informed that the reduction of oil supplies to Belarus is making up for the shortfall in revenues from undersupply to Russia of the petroleum products which the Belorussian side is to deliver in agreed volumes.
He also underscored that in the third and fourth quarters of 2016 the Russian side can reduce oil volumes transported from Russia to Belarus by 5 million tonnes. The schedule for the third quarter has been signed, the decision has been made, so we have no choice but to ensure technological implementation of this decision, added Mr Tokarev.
On compensation for losses of Transneft under the contract with Rosneft
The Russian Government considers it necessary to apply measures for making up for the shortfall in revenues of Transneft from pushing back the commencement of upstream operations by Rosneft over the Zapolyarye – Purpe oil pipeline from 2017 to 2018 and the reduction of supplies by 4.9 million tonnes till 2019, Transneft President Nikolay Tokarev told the journalists.
As regards Rosneft, the government believes that measures need to be taken to make up for the shortfall in Transneft revenues. We have a contract that contains penalty clauses. Most likely, we’ll have to invoke these provisions, said Mr Tokarev.
We maintain multi-way written correspondence with Rosneft, given that we’ve consistently been put at a disadvantage in terms of economics. Today we’ve reaffirmed our stance: there are definite contractual commitments which need to be respected. Otherwise, it’s our company that may run into problems, added Nikolay Tokarev.
Transneft President also noted that the position of Rosneft does not affect crude deliveries by other oil companies involved in the project. Other companies carefully follow their covenants with us; so far we’ve had issues only with Rosneft.
He also added that the oil pipeline would be put into operation in Q3 2016. We comply with all arrangements planned and I don’t see any occasion for alarm, he emphasized.
Under the agreement, Rosneft is to supply 3.3 million tonnes of oil to Zapolyarye – Purpe oil pipeline in 2017. Rosneft also planned upstream deliveries at the level of 6.57 million tonnes in 2018 and 7.5 million tonnes in 2019.
On the operations of the Makhachkala Commercial Seaport
The Makhachkala port can be closed for crude handling, said Transneft President Nikolay Tokarev at the press conference.
This is quite likely, he said, adding that the Kazakh partners notified the Company of the planned gradual contraction of transshipment volumes across the Caspian Sea to Makhachkala.
They have to load their own petrochemical plants they build in their country. Two years ago they let us know that they indeed were planning to cut transshipment volumes, noted Mr Tokarev.
On commissioning of the Kuyumba – Taishet oil pipeline
The Kuyumba – Taishet oil pipeline will be commissioned as scheduled till the year’s end, informed Nikolay Tokarev. He pointed out that the exact commissioning date can be shifted by one week at the most in Q3 2016.
On appointing the new head of CPC
President of Transnefteproduct Nikolay Gorban has been elected the new head of the Caspian Pipeline Consortium (CPC), Mr Tokarev said to the journalists.
The new head of CPC has been elected. All shareholders voted for Transnefteproduct President Nikolay Gorban, he said.