REPORT for 2015 year

1.5. Investment programme

At general performance versus targets of the Investment programme of Transneft PJSC performance of the financing plan in each investment project as part of Investment programme had its own peculiarities.  On a number of projects the real financing volumes exceeded targets that was associated, first of all, with performance of works ahead of contractual schedules. On other investment projects the real financing volumes amounted in less volume versus targets, that was associated with necessity to substitute some contractors because of their bankruptcy, long process of execution of land plots allocation for construction facilities, including because of organization of corresponding easements establishment through legal proceedingsб as well as because of receipt of savings following the results of projects implementation ending.

Information on execution of investment projects of Transneft PJSC Investment programme following the results of 2015 year is represented in the Appendix 14.

Pipeline transportation system “Arctic- Purpe-Samotlor”

The purpose of the project is to ensure intake in the system of transfer pipelines of oil from the oil fields of the Yamalo-Nenets Autonomous District places and of the north of Krasnoyarsk region: Urengoi oil fields group of “Gazprom” PLC, Suzun, Tagulskoe, Russian, Russian - Rechenskoe oil fields of “Rosneft Oil Company” PLC, Messoyakhskoye and East - Messoyakhskoye oil fields (“Rosneft Oil Company” PLC, “Gazprom” PLC), Pyakyakhinskoye oil field ( “Lukoil” PLC) for further delivery to oil refinery plants (ORPs) of the Russian Federation, as well as for the export.

Basis of the execution – Decree of the Government of the Russian Federation dated from 22.04.2010 № 635-р, as amended decrees of the Government of the Russian Federation dated from 28.10.2010 № 1884-р, dated from 18.11.2011 № 2068-р, dated from 24.11.2014 №2345-р, involving the construction of an oil pipeline by series in two stages according to oil fields development. 

First stage – construction of the petroleum main pipeline “Purpe-Samotlor” with the capacity of 25 mln. tons of oil  per a year and of length of 429 km, with the extension of the two oil pumping stations (OPS) and the construction of one PS – ended with construction completion and  setting into operation in 2011 year.

Second stage - construction of the petroleum main pipeline “Arctic – Purpe” with the capacity of 32 mln. tons of oil  per a year (with possibility to increase its pipeline-transmission capacity  up and to 45 mln tons of oil  per a year) and of length of 485 km, construction of reserve underwater lines of petroleum main pipeline through the river Pur and river Taz of total length of 40 km, construction of the two OPSs, extension of one OPS,  and construction of the operation facilities. 

In accordance with the Decree of the Government of the Russian Federation № 2345-р dated from 24.11.2014 setting into operation of the facilities of petroleum is planned for the 4th quarter of 2016 year. 

Following the results of 2015 year:

  • As of the first stage – works on construction of petroleum pipeline (134.4 km) were finished in full, there were performed hydraulic pressure tests and  in-line inspection, there were erected pipeline rout power transmission and engineering communication lines, there was executed the check out and start up;
  • As of the second stage – welding works of 212.2 km of pipeline were finished in full (including 14 km of reserve underwater line of petroleum main pipeline through the river Pur), there were finished the works on erection of pipeline rout power transmission pylons VL-10 kW and the works on engineering protection of the petroleum main pipeline divisions.  At OPS №2 there were finished erection of structural steel of ten VSTP tanks - 20 000 м3 and laying of the process pipeline; the works on the utilities installation and the finishing works in the facilities and buildings of oil pumping station are in progress;
  • As of the third stage – welding works of 178.8 km of pipeline were finished in full (including 26 km of reserve underwater line of petroleum main pipeline through the river Taz), there were performed hydraulic pressure tests and in-line inspection, erection of pipeline rout power transmission pylons VL-10 kW is almost finished. At the main oil pumping station (MOPS)  № 1 there were finished erection of structural steel of eight VSTP tanks - 20 000 м3 and laying of the process pipeline; erection of the load-bearing and protective frames of the buildings and facilities, as well as the works on utilities  installation are in progress.
Pipeline transportation system “Kouyumba – Taishet”

The purpose of the project is to ensure intake in the system of transfer pipelines of the Transneft PJSC of oil from new oil fields of Krasnoyarsk region: Kuyumbinskoye  (“Rosneft Oil Company” PLC) and Yurubcheno Tokhomskoye (“Rosneft Oil Company” PLC) for further delivery to Russian oil refinery plants and for the export.

Basis of the execution – Decree of the Government of the Russian Federation dated from 17.04.2012 № 532-р, as amended decrees of the Government of the Russian Federation dated from 16.01.2016 № 31-р.

There were planned two stages:

  • engineering and construction of the oil pipeline (linear pipeline part of the length of 700 km, and two OPSs) with the capacity of 8.6 mln. tons of oil  per a year and bringing into service in 2016 year;
  • engineering and construction of the objects of the oil pipeline (erecting of two OPSs)  to increase  pipeline-transmission capacity up and to 15 mln. tons of oil per a year and bringing into service in 2023 year.

Following the results of 2015 year on the objects of linear pipeline part there were finished in full installation and welding works, hydraulic pressure tests and in-line inspection - 700 km (100 %). The works on erection of pipeline rout power transmission pylons VL-10 kW and works on arrangement of valve stations and swab launcher-receivers (SLR) are in progress.

Erecting of buildings and structures at the areal objects of MOPS №1, OPS №2 is finished, the works on erection of the process pipelines and cable racks are almost finished, the works on laying of cable products, inside finishing works in the buildings and works on land improvement of the sites are in progress.

Pipeline transportation system “Eastern Siberia - Pacific Ocean” (ESPO)

The purpose of the project is to ensure oil transportation from new oil fields of Eastern Siberia to the Russian oil refinery plants and for the export to the countries of Asia-Pacific Region (ATR) via the specialized oil-loading seaport “Transneft – Port of Koz’mino” and to the People's Republic of China (PRC).

Basis of the execution – Decree of the Government of the Russian Federation dated from 31.12.2004 № 1737-р, as amended decrees of the Government of the Russian Federation dated from 05.09.2006 № 1246-р, dated from 27.02.2008 №231-р, Regulation of the Government of the Russian Federation dated from 10.03.2009 № 219, and Mandate of the Government of the Russian Federation following the results of the assembly regarding “Prospects for the development of the midstream operations” that took place on 18.02.2014.

There were planned two stages:

  • construction of the main oil pipeline ESPO-1 on the site of MOPS «Taishet» – OPS “Skovorodino” with the capacity of up to 30 mln. tons of oil  per a year and of the length of 2 694 km and erection of the seven OPSs, oil loading port in harbor “Koz’mino” – were finished and brought into service in 2009 year;
  • construction of the main oil pipeline ESPO-2 on the site of OPS “Skovorodino” - specialized oil-loading seaport (SOLP) with the capacity of 30 mln. tons of oil  per a year and of the length of 2 046 km and erection of the eight OPSs  – were finished and brought into service in 2012 year.

To ensure the increase of oil supplies to Russian oil refinery plants and for the export there were performed step by step development of the capacity of the ESPO-1 up to 50 million tons per year, with the plan of erection of five new OPSs – the objects were brought into service in 2012 year and up to 58 million tons per year, with the plan of erection of three new OPSs – the objects were brought into service in 2014 year.

In order to further increase the capacity of the ESPO-1 up to 80 million tons per year, the ESPO-2 up to 50 million tons per year the was planned the erection of new OPSs (including within the reconstruction of main oil pipelines in Western Siberia, providing transportation of oil in the direction of Taishet), reconstruction of the existing OPSs, expansion of the tank farm by 150 thousand m3.

There was developed the project documentation for the four OPSs (№ 3; № 6, № 9, № 29), the project works on the four OPSs (№7, № 23, № 26, № 32) are in progress.

The arrangement of temporary building and facilities on the construction sites of OPSs (№ 3, № 6, № 9) of pipeline transportation system (PTS) of ESPO-1 are in progress, and the works on construction sites cleaning and grading has been started.

The preparatory works on the construction site of OPS № 29 are in progress.

Project «SOUTH». The 1st stage. Reconstruction of main pipelines “Tikhoretsk – Novorossiysk”

The purpose of the project is to ensure supplies of diesel fuel within the site “Tikhoretsk – Novorossiysk” to the domestic market of Krasnodar region in the volume of up and to 1 mln tons per a year and for the export to the European countries via the port of Novorossiysk in the volume of up and to 5 mln tons per a year.

Basis of the execution – the General Plan of the oil industry development until 2020 year, approved by the order of the Ministry of Energy of Russia dated from 06.06.2011 year №212, Strategic development plan of Transneft PJSC for the period until 2020 year, approved by the Board of Directors of Transneft PJSC.

“Tikhoretsk – Novorossiysk” pipeline pumping capacity of diesel fuel shall be 6 mln tons per a year. Within the project, there is a plan to unite the existing loops of “Tikhoretsk – Novorossiysk-2” with erection of 90 km of linear part and reconstruction of two pumping stations.

Following the results of 2015 year as of the site objects OPS “Novovelichkovskaya”, the site “Groushovaya”, OPS-4 “Krymskaya”, oil transfer terminal (OTT) “Tikhoretskaya” there were developed the project and construction design documents. In December of 2015 year, the contracts for installation and construction works on the objects OPS “Novovelichkovskaya” and OTT “Tikhoretskaya” were concluded. As of the objects of OPS “Groushovaya” and OPS-4 “Krymskaya”, the purchasing process is in progress.

As of the objects of linear part, the installation and construction works are in progress: 84 km from 90 km of pipelines were welded.

Bringing into service is planned by 2017 year.

Project «SOUTH». The 2nd stage. Erection of main oil pipelines (MOP) “Volgograd – Tikhoretsk”

The purpose of the project is to ensure supplies of diesel fuel via pipe-line transport within the site “Volgograd – Tikhoretsk” in the volume of up and to 6 mln tons per a year, including up and to 1 mln tons per a year to the domestic markets of Volgograd and Rostov regions with further delivery for the export to the European countries via the port of Novorossiysk.

Basis of the execution – the General Plan of the oil industry development until 2020 year, approved by the order of the Ministry of Energy of Russia №212 dated from 06.06.2011 year, Strategic development plan of Transneft PJSC for the period until 2020 year, approved by the Board of Directors of Transneft PJSC.

Within the project there is the plan of erection of the railroad overpass, two oil pumping stations and linear part with length of 495 km.

Following the results of 2015 year as of oil pumping stations and linear part of main oil pipeline “Volgograd – Tikhoretsk” the project documents is developed, the favorable conclusion of the state expertise on costing project component document is received. The construction design documents is approved as “approved for construction”.

As of the main pumping station, the start of installation and construction works is planned for the 1st quarter of 2016 year.

As of the objects of linear part, the installation and construction works has been started in 2015 year and there was performed the welding of 23 km from 495 km of pipelines.

Bringing into service: of the linear part of the main pimping station - in 2017 year, of the draining railroad overpass – in 2018 year, of the midpoint pump station – in 2020 year.

Project «SOUTH». The 3rd stage.

The purpose of the project is to ensure supplies of diesel fuel via pipe-line transport within the site “Samara – Volgograd” in the volume of up and to 6 mln tons per a year with expansion of the site from Volgograd to Novorossiysk to the domestic market of the Russian Federation  and for the export to the European countries via the port of Novorossiysk .

Basis of the execution – the General Plan of the oil industry development until 2020 year, approved by the order of the Ministry of Energy of Russia dated from 06.06.2011 year №212.

According to the project there is plan to construct 726 km of linear pipeline portion, six pumping stations and to reconstruct the existing pumping stations.

In 2015 year the engineering surveys has been started.

The start of the installation and construction works is planned in 2018 year.

The end of the project is planned in 2020 year.

Development of the main pipelines system to increase petroleum products supplies to the port of Primorsk up and to 15 and 25 mln. tons per a year  (Project “North”).

The purpose of the 1st stage – to increase the export of diesel fuel from 8.5 mln tons up and to 15 mln. tons per a year in the destination of the port of Primorsk beginning from 2017 year.

Basis of the execution – the General Plan of the oil industry development until 2020 year, approved by the order of the Ministry of Energy of Russia dated from 06.06.2011 year №212, Strategic development plan of Transneft PJSC for the period until 2020 year, approved by the Board of Directors of Transneft PJSC.

Within the project the construction of new oil product pipelines with total length of 15 km, erecting of the four pumping stations and reconstruction of the twenty existing pumping stations is planned.

Following the results of 2015 year five objects were brought into operation: По итогам 2015 года введены в эксплуатацию пять объектов: reconstruction of the four existing pumping stations and construction of loop of 15 km. The sites of main oil pipelines “Yaroslavl’ – Kirishy-2” and “Kirishy – Primorsk” were transferred for pumping of diesel fuel (280 km). The works on transfer of the two tanks VSTP-50 000м3 were finished.

The following works are in progress:

  • erecting of the four pumping stations;
  • reconstruction of the four pumping stations and telecommunications system objects;
  • transfer of 525 km of oil pipeline “Yaroslavl’ – Kirishy-2” for pumping of diesel fuel.

Bringing into service is planned in 2016 year.

The purpose of the 2nd stage – to increase the export of diesel fuel from 15 mln tons up and to 25 mln. tons per a year in the destination of the port of Primorsk beginning from 2017 year.

Basis of the execution – Russia's Energy Strategy until 2030 year, approved by the Government of the Russian Federation dated from 13.11.2009 №1715-р.

Within the project the construction of new oil product pipelines with total length of 138 km, erecting of the three pumping stations, reconstruction of the eleven existing pumping stations, construction of the two tanks of total volume of 10 thous. m3 and the reconstruction of the ten tanks of the total volume of 150 thous. m3 is planned.

In 2015 year the environmental survey was performed for the objects of the second stage, as of the objects with finished projecting phases, the constructed part of pipeline of 67 km length and of the antiturbulence agent batching unit  were brought into service, the cleaning of 258 km of pipelines was performed.

Bringing into service is planned in 2018 year.

Reconstruction of the main pipeline system to increase petroleum products transportation to the Moscow region

The purpose of the project is to ensure volume of transportation of light oil products (petroleum, diesel and jet fuels) for the consumers of the Moscow region.

Project execution shall allow:

  • to diversify the supply of petroleum products by pipeline transportation to the Moscow market from a oil refinery plants of the Central, Southern and Volga federal districts;
  • to unload the Moscow transportation hub (railways and highways).

Basis of the execution – the General Plan of the oil industry development until 2020 year, approved on 06.06.2011 year by the order of the Ministry of Energy of Russia №212; Strategic development plan of Transneft PJSC for the period until 2020 year, approved by the Board of Directors of Transneft PJSC on 02.02.2012 year (Minutes № 2).

Within the project the construction of linear pipeline portion with total length of 77 km, erecting of one pumping stations, reconstruction of the seven pumping stations, construction of tanks of the total volume of 330 thous. m3, and erecting of draining railroad overpass is planned.

In 2015 year, the environmental survey was performed for the objects of pumping stations reconstruction.

Construction of the ten new tanks of the total volume of 60 thous. m3 is in progress, as of the construction of linear pipeline portion the welding works of 12 km from 77 km of pipeline was performed.

Bringing into service is planned gradually with full ending of the range of works in 2018 year.

Directions of «PJSC Transneft PLC participation in the international projects of development of the Caspian pipeline consortium (CPC) pipe-line transport

«PJSC Transneft PLC is a trustee of the federally owned 31% of shares of “CPC-R” CPJSC and “CPC-K” PJSC.

CPC pipeline system is one of the largest investment projects in the energy sector with the participation of foreign capital within the territory of CIS. The length of the pipeline Tengiz –Novorossiysk, that connected the oil fields of the Western Kazakhstan with the sea terminal in Novorossiysk, is 1511 kilometers.

The estimated capacity of CPC system according to the original construction project amounted to 28.2 million tons of oil per year.

On the 15th day of December 2010 year the corporate bodies of CPC took the final decision on investments into the project on increase of the capacity of the oil pipeline “Tengiz-Novorossiysk” and signed an agreement “"On amendments and additions to the agreement of shareholders of 1996 year”.

Capacity of the pipeline will be increased up and to 67 mln tons of oil per a year (with using of anti-friction additives - up and to 76 mln tons а oil per a year). Budget of the expansion project is set at the amount of 5.6 billion US dollars. In accordance with the time schedule, completion date ща CPC Expansion Project is defined as the 31st day of December 2016 year.

In 2015 year 42.7 mln tons of oil were pumped via the system of CPC, 37.9 mln tons of which – oil of Kazakh shippers and 4.8 million tons - oil of Russian shippers. In total, the volume of oil shipped in 2015 year at the CPC sea terminal exceeded the index of 2014 year by 7% or 2.8 mln tons.

Taking into account the adequacy of funding for the financing of performing of the Expansion Project of the Caspian Pipeline Consortium, since 09.04. 2015 year CPC started to repay indebtedness owed to shareholders. In 2015 year, shareholders were paid out 1 500 mln US dollars, 327 mln. US dollars of which were paid out in the benefit of the Russian Federation.

Pipeline “Burgas – Alexandroupolis”

In 2015 year, the Company carried on performing of activities on saving of the international project campaign “Trans-Balkan Pipeline B.V.” as a legal entity – proprietor the project feasibility.

 

1 Решение Совета директоров Компании (протокол № 26 от 28.10.2015) по корректировке Долгосрочной программы развития ОАО «АК «Транснефть» на период до 2020 года.