Murmansk pipeline memorandum

Lukoil, Sibneft, Yukos and Tyumen Oil Company (TNK) have signed a memorandum of mutual understanding to create an oil pipeline system to transport oil through an oil terminal close to Murmansk. It is planned to transport up to 80 million tonnes of oil per annum through the pipeline system. Most of the crude will be supplied to the markets in Western Europe and North America. At the moment the companies participating in the project are considering two routes: Western Siberia–Ukhta-Murmansk (3600km) and Western Siberia–USA–Murmansk (through the White Sea), stretching 2500km. The total cost of the project is estimated at USD 3.4 billion to 4.5 billion, depending on the route chosen. The sides plan to prepare an agreed declaration of intent for the project as soon as possible. After this a decision will be reached on joint design, choosing the best route, agreeing the main requirements of the oil pipeline system and preparing a detailed schedule for the implementation of the project.

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