September 16, 2008

Irkutsk Oil Company May Double Input to Espo

IRKUTSK. Sept 10 (Interfax) - The Irkutsk Oil Company may increase oil supplies to the East Siberia - Pacific Ocean (ESPO) pipeline planned as of 2012 to 2.5 million tonnes a year, which is twice as much as previously agreed, company CEO Marina Sedykh told Interfax in the wings of the 5th Baikal Economic Forum.

The increase is facilitated by the boost in oil reserves at the company's fields, she said. For instance, this year it has added 31 million tonnes of oil of C1+C2 categories to its existing reserves - 6.5 million tonnes at West Ayanskoye and 24.5 million tonnes at Yaraktinskoye.

Sedykh also said that in November the EBRD valuation authority will consider a loan to her company for the further development of the reserves of hydrocarbons in Irkutsk region.

She said that in 2008-2012 the company will channel about 4 billion rubles to geophysical studies and exploratory drilling, in 2008-2009 160 million rubles will be devoted to environmental protection measures and production safety.

Earlier reports said that the loan EBRD may disburse to the Irkutsk Oil company may run to several hundred million U.S. dollars for a term of seven years. The company expects to receive the first tranche of the loan at the beginning of next year, Sedykh said.

In 2012 the company plans to extract 1.3 million tonnes of oil. Investments in the company in 2007-2011 are planned in the amount of 12.3 billion rubles. Besides, during the same period 800 million rubles should be invested in geological prospecting at fields to increase reserves.

The Irkutsk Oil Company controls Ust-Kutneftegaz, Danilovo and INK-Neftegazgeologia companies. Together with its subsidiaries it owns five fields and six licensed sections.

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