Four of the country’s oil majors have signed a deal to build a giant export terminal in Russia’s only ice-free Arctic port, a move that should help the United States cut its dependency on the Middle East. The planned deal comes as Russia seeks markets outside Europe, while the United States is looking to diversify its crude sources away from traditional but politically turbulent suppliers. The memorandum of understanding was signed by executives from LUKoil, Yukos, Tyumen Oil Co. (or TNK) and Sibneft, which together account for more than half of Russia’s 8 million-barrel-per-day output.
“Russian companies could supply up to 13 percent of the United States’ total crude oil imports by 2010,” the companies said in a statement. They agreed to build a 1 million bpd terminal in Murmansk in the Barents Sea and a link of between 2500km and 3600km to connect Murmansk with the country’s existing pipeline network. This should be completed by 2007.
The four majors said more companies could join the project soon, including state pipeline monopoly Transneft. However, Transneft has declined to comment. The four majors also said Surgutneftegaz and Rosneft could join the project.
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