June 30, 2008

Talakan Field Ready for Industrial Production

MOSCOW. June 30 (Interfax) - The Talakan oil field in Yakutia is fully prepared for industrial oil production and for its oil to be pumped into the Transneft (RTS: TRNF) pipeline system, Surgutneftegas (RTS: SNGS), which owns the field, said in a report compiled following the visit of a governmental delegation led by Deputy Prime Minister Igor Sechin.

At present, there are 22 production wells in operation at the field, while another 20 are ready to open. Oil is already being extracted at the field on a trial basis with the oil being pumped into a temporary pipeline for further shipment to river tankers. As transport capacity increases, daily oil production at the field could grow to 4,00-5,000 tonnes in the near future.

Exploration and production drilling is actively underway at the Talakan field. The first phase of a gas turbine power station is to be opened soon, an asphalt concrete plant is being built and construction continues on community facilities.

Surgutneftegas continues to expand its presence in Yakutia and is currently working at 12 licenses areas.

Pipeline operator Transneft said earlier that it plans to start pumping some 180,000 tonnes of oil from the Talakan field and 40,000 tonnes from the Verkhnechonsk field into the East Siberia-Pacific Ocean (ESPO) oil pipeline in September 2008. The oil will be shipped in the reverse mode. In 2009, shipments from the Talakan field could total 1.2 million tonnes of oil, while 1.3 million tonnes could be shipped from the Verkhnechonsk field.

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