Transneft ups ESPO cost estimates

The estimated cost of the first phase of the Eastern Siberia-Pacific Ocean (ESPO) oil pipeline project has risen 11.2 percent, from $11.232bn to $12.486bn, the project operator Transneft's Vice President Sergei Grigoryev told RBC today. He noted that the project's appreciation had been prompted by inflation and an increase in prices for building materials, as the initial cost estimates were given on the basis of prices in Q2 2004.