Rus News Journal

Total has not justified expectations of Ministry for Protection of the Environment and Natural Resources

the Operator of the project of working out of the Harjaginsky deposit French Total has presented to Ministry for Protection of the Environment and Natural Resources the technological scheme of realisation of the project. In the ministry say that term of working out of Harjagi is increased with 33 till 56 years and level of extraction below planned - all 2,4 million, instead of 3,5 million tons. Of Ministry for Protection of the Environment and Natural Resources are assured that decrease in volume of extraction will lead to reduction of the income which will receive the Russian budget. Participants of the project assert that volumes of output are limited by throughput of pipeline system.
yesterday Total has informed that has presented to the Central commission on working out at Ministry for Protection of the Environment and Natural Resources the technological scheme of working out of two objects of the Harjaginsky deposit (are developed on the terms of the agreement on production section - SRP). Details in the company do not inform, referring that while the document is not confirmed. Representatives of Ministry for Protection of the Environment and Natural Resources have specified that under regulations the document should be considered within four months.

the Harjaginsky deposit is located in Nenets joint-stock company (NAO). The operator of the project - Total to which posess 50 %, 40 % owns Norwegian Hydro, 10 % - under control to administration of Nenets joint-stock company the Nenets oil company. SRP, concluded for 33 years, operates since 1999.

however already now officials of Ministry for Protection of the Environment and Natural Resources are dissatisfied with the project presented Total. According to the source in the ministry, in 2006 the company should was extract 3 million tons of oil (has extracted about 1 million tons), and in 2007 - 3,5 million tons. in the presented scheme in 2007 Total is going to extract hardly more 1 million tons of oil and intend to increase extraction to 2,2 million tons by 2012, - the interlocutor speaks. - and the less extraction, the less than profitable oil will get to the state . According to the source, without changing volume of stocks and counting term of working out of a deposit within 56 years, Total has simply lowered annual volume of extraction.

the technological scheme provides some variants - four cores and some more possible, - the source close to participants of the project objects. - the scheme is not co-ordinated in any way to period of validity SRP: after it will expire, the parties can decide to prolong the agreement if the project is profitable . According to the interlocutor, the maximum volume of extraction provided by one of variants, - 2,3 million tons. the scheme it is skilled - the industrial working out, providing extraction of 3 million tons to which Ministry for Protection of the Environment and Natural Resources refers, has been confirmed in 2002, since then much has changed, besides, we are limited by throughput of the pipeline: while ` the Transneft ` gives us possibility to pump over hardly more than 1 million tons - the interlocutor speaks. He hopes that in the future the situation will change. Also the source reminds that kapzatraty under the project are already compensated, therefore means from sale of the extracted oil after payment of a royalty of 6 % and operational expenses share between the investor and the state. Is minimum possible share of the budget makes 47 %, it now and is listed. In 2006 (taxes and an oil money`s worth) have made incomes of the state budget of the project $169 million At increase in profitability the share of the oil having on the budget, increases, that is advantage of growth of extraction for Total is unevident, consider in Ministry for Protection of the Environment and Natural Resources.

in Transneft notice that the main pipeline on which oil is transported with Harjagi, really works on a limit of capacities. However assure that are ready to increase throughput if the investor pays necessary expenses. At the same time in Transneft Specify that about it Total to petrotransport monopoly still never addressed from the moment of last increase in capacity of a pipe (on 5 million tons, to 23,5 million tons a year in 2005). But to provide possibility of prorolling of oil is a duty of the state, - tells a source close to the project. - Besides, anyway there is still a trade oil pipeline belonging to LUKOIL on which oil arrives in main . As he said, expenses for pipeline expansion are not considered as the compensated.