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2008 April 28   08:28

Gazpromneft hopes to secure go-ahead to export oil to China in 2008

Gazpromneft hopes to secure permission   to   ship   oil   to   China   in  2008  using  the Atasu-Alashankou oil pipeline, Alexander Dyukov, the company's CEO, told journalists according to Interfax.

"The Industry and Energy Ministry has yet to give us permission to ship oil to China by the end of 2008, but we are now working on solving this issue.  Hopefully, the solution will be found in the near future," he said.

The company hopes the question will be solved positively, "pipeline capacity permitting, and as long as China needs these purchases," Dyukov said. The company expects to ship just under a million tonnes of oil to China, he said.

Gazpromneft was not  included in the list of companies allowed to ship oil  to  China in 2008 via Kazakhstan using the Atasu-Alashnkou oil pipeline. The company said earlier that it had filed an application with the Industry and Energy Ministry for permission to supply 1,08 million tonnes of oil in April-December 2008.

In  the  first  quarter  of 2008, Gazpromneft was allowed to export 150,000  tonnes  of  oil  to  China  through  Kazakhstan.  The company encountered transportation problems after failing to  agree transit issues with Kazakhstan's transport monopoly, KazTransOil.

In late November 2008, Russia and Kazakhstan signed a protocol on mutual transit, whereby Russia can export up to 5 million tonnes of oil per year to China through Kazakhstan using the Atasu-Alashankou oil pipeline. Export schedules for oil shipments to China through Kazakhstan using the pipeline were not made previously.

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