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LatRosTrans continues studying possibilities to transform the oil pipeline Polotsk-Ventspils

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LatRosTrans continues studying possibilities to transform the oil pipeline Polotsk-Ventspils

november 27, 2013 / LatRosTrans

In the Business Performance Presentation held yesterday, on November 26 it was revealed that LatRosTrans Ltd (LRT) has finished conservation of the pipeline’s section of 250 km from the border of Lithuania to Ventspils and continues evaluating possibilities for its functional transformation.

Within framework of the pilot project, which was commenced in spring of 2013, special diagnostics of the 8.2 km long section of the pipeline was performed, as well as the necessary improvement for hydraulic tests, as a result of which it was concluded that the pipeline can endure pressure of up to 48 bars.

The Head of LRT Igors Stepanovs states: “The most relevant event of this year for the company is the Supreme Court’s decision to reject the appeal claim of the Byelorussian company “Polotsktransneft Druzhba” against LRT regarding its ownership rights to the technological oil, which is partially pressed out from the oil pipeline and is partially located in the company’s oil pipelines”.

Igors Stepanovs also especially highly evaluates the attempts of the Latvian government to solve the issue regarding investment of the state of Latvia into the company’s share capital – land with permanent usage rights.

In the business performance presentation it was also pointed out that during the nine months of 2013 the company has transported in total 4.6 million tons of petroleum products. In turn income of LRT in this period of 9 months of 2013 reached 9 million lats, slightly exceeding the previous year’s result of the respective period (8.8 million lats), but the company’s gross profit was 1.09 million lats.

 “The mentioned processes indicate that the company is working in the right direction. Also the next year’s priority is strengthening the company’s business positions – transforming the oil pipeline and resolving the matter of land usage rights. At the same time, just as in the previous years, LRT will pay much attention to environment protection matters,” I.Stepanovs emphasises.

About LatRosTrans

LatRosTrans Ltd owns two crude oil pipelines in the territory of the Republic of Latvia: Polotsk-Mazeikiai and Polotsk-Ventspils, which have not pumped oil in the last years, and one petroleum product pipeline Polotsk-Ventspils, which currently actively provides transport of diesel. LatRosTrans Ltd is the largest Latvian-Russian joint venture in the Baltic States. The Russian partner – joint stock company Transnefteprodukt (subsidiary of Transneft) owns 34% of the company’s shares, while 66% of the shares are owned by joint stock company Ventspils nafta (NASDAQ OMX RIGA: VNF1R).

Elīna Dobulāne, Communications Consultant

JSC Ventspils nafta


Phone: +371-25959447


E-mail: elina.dobulane@vnafta.lv


www.vnafta.lv

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