Yakutia's Oil Infrastructure Set for Major Upgrade in $3.7B Project
Yakutia, Russia, is set for a significant upgrade to its oil infrastructure. The regional government has announced a comprehensive reconstruction project for four key oil bases, led by the local company 'Sakhaneftegazsbyt'. The project, worth over 260 billion rubles, is the first public-private partnership of its kind in Russia, using the Far Eastern concession mechanism.
The project, spanning four years, will see the complete overhaul of the Belogorsk, Zhigansky, Ust-Kuyga, and Khandyga oil bases. 'Sakhaneftegazsbyt', an independent entity with 100% republican ownership, will lead the reconstruction. The company, responsible for supplying and selling petroleum products, aims to modernize the bases, improving their efficiency and capacity.
The project has already received 96 billion rubles in funding for the first two years, with plans to allocate a further 165 billion rubles in the next three years. The state has committed to compensating up to 100% of the infrastructure object's cost over at least 10 years after operation. Engineering and survey work is complete, and design estimates have been developed, with state examination pending.
The reconstruction project, slated for completion by the end of 2026, is expected to significantly enhance Yakutia's oil infrastructure. The modernized bases, under the stewardship of 'Sakhaneftegazsbyt', are poised to boost the region's oil production and supply capabilities, marking a significant step forward for Russia's oil industry.
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