Rosneft Suggests Mix of Private and Public Funds for ESPO Pipeline Construction

Rosneft President Igor Sechin suggested Russia’s President Vladimir Putin to invest in the domestic market and in infrastructures to further increase the country’s clout in the Asia-Pacific region. 

‘The main priorities stated in Sechin’s report must be the development of the domestic market, primarily in the Eastern Siberia and Far East, diversification of export supplies to developing markets of the Asia-Pacific region, and also continuation of oil companies’ efforts to develop their own competencies to cut dependence on services of foreign partners regarding the oil service sector as well,’ reads a note presenting the results of a report.

Sechin, Executive Secretary of Russia’s Presidential Commission on Strategic Development of the Fuel and Energy Sector and Ecological Safety, also said to Putin that the ESPO pipeline is central for Russia’s future. He proposed to finance the project with a mix of financial deposits of state and non-State pension funds. The pipeline would export Russian crude oil to Japan, China and Korea. 

For what concerns gas, Easter Siberia has the best potential, Sechin said, claiming that those fields could provide a output of 200 bln cubic meters a year.

“It is obvious that we should sell this gas at the market. If oil and gas companies have an opportunity to enter gas transport system which is being created by Gazprom on economically justified conditions, it will optimize investments.”