The pipe is currently being transported by barge from its storage location to a staging point south of license 61. This relocation should be completed within the next few weeks. The field survey of the revised southern pipeline route has commenced and it is now expected that the route will be about 60 kilometers long as opposed to the previous 70-kilometer estimate, which included a contingency. The shorter route means that no additional pipe will now need to be acquired.
Tenders for the drilling of nine development wells in 2010 have been received and are currently being evaluated. Initial indications are that drilling costs will also be within budget estimates. A contract is expected to be awarded and signed in the coming weeks.
Dennis Francis, chief executive officer of PetroNeft Resources commented, “The hard work undertaken over the past year to optimise the development plan for the Lineynoye oil fields is now coming to fruition. Operationally everything is on schedule and on budget to achieve the major milestone of year-round production in the third quarter of 2010.”
