"We are proceeding from Energy Strategies. The document has all necessary figures for good progress," the Premier replied as a reporter asked him about Russia's prospects to extract more oil.
The federal government is promoting infrastructural progress, and coordinating industrial efforts. All that enhances petroleum companies' interest in a greater output and sales. "If there is a demand, a lucrative market situation, and resources for more thorough prospecting, updated technologies, and a bigger output, an interest appears in doing more."
Petroleum extraction must go hand in hand with investment in oilfield development and petrochemistry. "Money must be invested. We are not just to take what lies on the surface. Extraction is to become more efficient, and oil must be processed," added Mr. Fradkov.
He will personally monitor Russian port development through regular conferences on a recent government resolution. The Premier has given priority orders, and expects achievements reported a month later, he said.
"We see it is necessary to smooth up effort coordination. On the one hand, we have done much to launch progress in the transport infrastructure, and it is developing apace. On the other hand, problems have come into the foreground. They must be tackled to increase efficiency in all-round seaport updating, and improve roads leafing to ports."
The matter demands thorough analyses to calculate the load on oil and petroleum product pipelines, being laid or blueprinted alike. The situation may make it necessary to amend national transport and energy strategies, the Prime Minister pointed out.
He visited the Vysotsk seaport today to attend a commissioning gala of LUKoil Co.'s light petroleum product pumping terminal. The Premier's itinerary lay on to the nearby Primorsk to see its petroleum terminal, Russia's largest.
There are plans for Primorsk to increase petroleum pumping to an annual 62 million tonnes next year. When asked whether it was a tangible prospect, Mr. Fradkov said more debates on it were ahead. "This is an extremely responsible and comprehensive decision to make. We must evaluate the technical potential to see whether the port will cope."
Primorsk is currently pumping an annual 40 million tonnes, the amount to reach 52 million by the year's end, and increase by another ten million next year, gubernatorial PR said to the media.
A reporter asked the Prime Minister about an alleged LUKoil intention to pass its Vysotsk terminal to Transnefteproduct Co. "This is the first time I hear about it," he answered.
The LUKoil Directors' Board alone can settle the matter, added Valeri Serdyukov, Leningrad regional governor.
Transneft Co. has appealed to the federal government to pass the export-oriented terminal the LUKoil is building in Vysotsk into Transnefteproduct management, Semyon Weinstock, Transneft president, announced on an earlier occasion. "We have made a suggestion, and are now waiting for the government to answer."
Mr. Weinstock is alarmed with suspected opportunities of uncontrolled oil product exports to hit the domestic market, he said to substantiate the initiative.
The Cabinet will regard prospects for a free economic zone round the Ust-Luga seaport in the Leningrad Region. "We have not yet tackled the matter. It was offered to a conference just today," said Mikhail Fradkov.
The Ust-Luga issue is very entangled, as Russia has not passed free economic zone laws to this day. It, however, deserves to be pondered, with convincing arguments made from the start, he remarked.
