Rosneft directors to approve changes to major deal
MOSCOW. May 15 (Interfax) - The board of directors at oil company Rosneft will on May 17 take up the matter of making changes to the terms of a deal that would impose, or could impose, obligations on the company equal to or exceeding an amount equivalent to $500 million.
A statement issued by the company says that plans for the meeting include approval of financing for design and exploration work under the second phase of the Eastern Petrochemical Company (EPC) business-project and determining where Rosneft stands in regard to the appointment of a single executive body for OJSC Rosneft-Kubannefteprodukt and CJSC Elvari Neftegas.
EPC was set up to implement the construction of a petrochemicals complex in Nakhodka (Primorsk Territory). Production there is slated to begin in December of 2016. The project price tag is roughly estimated to be over $5 billion. The plan is for processing up to 10 million tonnes of raw hydrocarbons per year. In the first phase, the complex will be processing naphtha and liquefied gases from Komsomolsk Oil Refinery , along with blended naphtha from Angara Oil Refinery and Angara Petrochemical Company. Total refining will be up to 3.7 million tonnes annually and output almost 3 million tonnes of finished product.
After the second and third phases are completed, the facility could be processing an additional 5 million tonnes of oil arriving via the Eastern Siberia - Pacific Ocean pipeline (ESPO), along with 1.5 million tonnes of gas condensate from the Sakhalin-3 project. Transition to the second and third phases is planned for the third and fourth quarters of 2018, respectively.
Elvari Neftegas is a joint Rosneft-BP venture that operates at the Kaigansko-Vasyukan licensed section of the Sakhalin-5 project.
