Transneft' : Concerning preliminary results of implementation of Transneft’s Development Program in 2016

Transneft has identified the preliminary results of implementation of the Development Program in 2016.

Last year the company carried out integrated testing and commissioned large investment projects, in particular: Yug-1. Building of loopings for the Tikhoretsk - Novorossiysk-3 OTP, Sever-15. Development of the PPTP System in Primorsk up to 15 million tons, Approach Dam of the Eastern Siberia-Pacific Ocean Pipeline System-2 (ESPO PS-2), Construction of Auxiliary Facilities.

The Kuyumba-Taishet oil trunk pipeline and the Zapolyarye - Purpe PS Pipeline System are totally ready for commissioning.

During the previous year 1,702 new construction facilities and facilities which had undergone technical upgrading and revamping facilities were commissioned, including 2,817 km of trunk pipelines (1,329 km of newly constructed pipelines, 1,488 km of those which underwent technical upgrading and revamping). 471 km of pipelines subject to commissioning in 2017 were connected. 525 km of trunk pipelines were retasked for pumping of petroleum products.

As for site facilities since January 2016 Transneft provided for work completion and commissioning of both new storage tanks and those under reconstruction in the amount of 117 items with the construction nominal capacity of 2,079 cubic meters. Commissioning of 8 new oil pump stations, 14 Oil Quantity and Quality Metering System (OQQMS) facilities and 19 technical security equipment (TSE) facilities was carried out.

Besides, in 2016 normalization of Transneft's port facilities was completed which in total cost 705.1 million rubles including VAT.

During the previous year Transneft provided for receipt of 333 statements from the state construction supervision body concerning compliance of the constructed and revamped facilities with requirements of technical regulations and design documentation (SOC, statement of conformity) and 368 permissions for facility commissioning.

The expected fulfillment of Transneft's Development Programme in monetary terms in 2016:

- funding amount: 337.5 billion rubles;

- implementation of capital investments: 311.7 billion rubles.

Within the scope of preparation to fulfillment of the Development, Technical Upgrading and Revamping Programme for 2017 Transneft completed state expert examination of design documentation concerning 161 facilities in 2016. In addition, documentation concerning 1,030 facilities was approved for 'work performance', land allotment was executed in respect of 11,942 ha. Welding of 1,330 km of pipelines at facilities was ensured which pipelines are to be commissioned in 2017.