Transneft ring-fences ESPO spending

摘要

Transneft will maintain spending on the expansion of the East-Siberia Pacific Ocean (ESPO) crude export pipeline, although total investment will probably fall in 2016-17, after Moscow approved a lower than hoped for 2016 tariff rise. The disappointing tariff increases will reduce Transneft’s revenue by Rbs95bn ($1.5bn) in 2016-17 — including Rbs25bn next year — compared with what it would have received if tariffs were set 10-11pc higher, as the company requested. Following lower investment in 2016-17, Transneft will bump up spending in 2018-19 and will be able to complete its maintenance programme by 2020, it says. Maintenance absorbs 60pc of Transneft’s capital expenditure (capex).