Lodamun

[imperialpearl]

With much of its formal administrative restructuring having been concluded, Neftkomp executives confirmed that the company, with significant assistance from domestic loans to Nadiya, would begin construction of its first major piece of critical infrastructure: an integrated crude oil and natural gas complex. At a recent investors' call between Neftkomp and its investors, the company’s CEO, Denis Polyakov, revealed that it would be moving forward with its anticipated plans of rebuilding much of its critical infrastructure. In the amidst of decades of mismanagement, chaos and restructuring with the Nadiyan/Trigunian energy market, much of the company’s legacy infrastructure/assets were either sold off or transferred to other entities, in a move which have at the time termed as a punitive punishment for the central role the company played in domestic politics prior to the “utopian era”. Polyakov noted that although it remained at an inherent disadvantage when compared to Lourennais and Pontesian firms, who occupied significant swaths of both market share and operations, there was nonetheless room for the company to “rebuild and to better”. Whilst construction and fabrication on the company’s crude oil rigs are ongoing, Polyakov explained the rationale behind the company’s decision to make such a major investment in infrastructure in the absence of “first oil and gas”. “You don’t wait until the oil and gas are flowing to then begin building pipelines or processing plants,” he emphasised. “What you want to ensure is that when it does begin to flow that you are prepared to process it then and there.” In a market were a sizeable portion of activity is managed by Lourennais firms, many minor crude oil and natural gas players have become dependent on said firms to process/refine their crude oil and natural gas, often at a mark up. Polyakov reiterated to the company’s investors that it was not interested in such a relationship with the supposed “established majors” within the country, reaffirming the company’s ambitions towards becoming vertically integrated, with operations throughout the supply chain.
 
The complex to be constructed, according to Senior Vice President for Operations Madgalina Shchetinina, is expected to be a central processing facility for much, if not all, of the company’s processing in Nadiya. She noted that the supposed processing facility would likely hover around 300,000 barrels of crude oil per day, with around 120 million scfd in natural gas. The complex will, apart from processing crude oil into various fractions, including bitumen, diesel, and kerosene, make some 1 million barrels of crude oil available for export per day alongside a planned storage capacity of around 5 million barrels. Director of Neftkomp Fuel Trading OOO, Neftkomp’s fuel trading arm, Omelyan Khodemchuk, stated that whilst the company was undergoing its initial evaluations for an export license, construction of an export terminal had already begun. He noted that it would be connected to the broader processing complex to allow for greater ease of doing business, rejecting proposals for the company to construct pipelines to connect a terminal, which would be a great distance from the processing facility. Owing to its size and supposed scale, Neftkomp has reportedly tapped into the local financial services sector to secure loan arrangements to finance the facility. Its Chief Financial Officer, Konstantin Baryshnikov, stated that although its credit rating was subpar when compared to other companies owing to its deteriorating asset portfolio and history as a deeply indebted firm, it was nonetheless optimistic about its chances of securing a sizeable loan. He noted that discussions were ongoing with Neftkomp’s parent company, North Seleyan Petroleum, on the potential for an intercompany loan to finance the complex’s construction, among other projects, should the loan process in Nadiya fall through. It is estimated that the complex, inclusive of its various components, could cost around 7.5 billion LOD (10.7 billion rubles).