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The money was used to fund conceptual design, front-end engineering and the early construction operations on the pipeline and associated infrastructure.

The 374-kilometer Yamal pipeline is designed to pump 14 million tons a year. The construction is due to begin in 2013 to be completed in 2016. The overall cost is estimated at $2.7 billion.

Hydrocarbon evacuation infrastructure is a critical component enabling TNK-BP to develop Yamal and northern Krasnoyarsk oil fields in a timely and effective manner. The Yamal system will link ТNК-ВР’s three major development projects in this region (Suzun, Tagul and Russkoye fields) to the Zapolyarnoye-Purpe pipeline and further on to the East Siberia-Pacific Ocean system.

“Effective Yamal development is a key strategic objective for TNK-BP. Our combined discovered reserves in the Yamal-Nenets and northern Krasnoyarsk regions total 10.8 billion barrels of oil equivalent”, says Alexander Zhagrin, Vice President, Yamal Oil Division, TNK-BP.