Kozmino oil terminal opens up Asian crude markets

The opening of a new oil terminal at Kozmino, near Nakhodka, pushes Russia closer to the strategic goal of diversifying its energy exports.

The new $2 billion Pacific oil terminal, opened on Monday, provides access to major energy importers, Japan, China and Korea. It is currently expected that the new terminal will see more than 3 million tones exported from it during 1Q 2010, with volumes expected to triple over coming years when the $22 billion Eastern Siberia Pacific Ocean pipeline is complete.

Prime Minister Vladimir Putin, who oversaw the departure of the first oil tanker from the port noted the strategic importance of greater access to Asian markets.

“This is definitely a serious event. It’s a strategic project, because it gives us access to completely new markets – the asian and pacific markets, which are growing and have a huge potential. Today Russia is present on these market, but on a very small scale. Today’s opening gives us completely new possibilities.”

The Russian Prime Minister also took part in the ceremony of laying the semi-submersible drilling rig "Star" in the city of Bolshoy Kamen, in the Primorskoye Region. 

Rosneft will spend about $2.5 billion on construction of drilling platforms in Far East of Russia.The head of the company Sergey Bogdanchikov told RT Rosneft it’s just the first step in conquering the Asian market.

“The Asian market is very wide and consumption is growing. It’s too early to talk about competition, as it’s a matter of providing sufficient supplies. Our oil differs from Arabic with lower sulfur content, and many plants are ready to buy our oil. As for the price formula it’s in the first stage. When the crude is ready for the market, we’ll be able to announce the final price.”