9.3. Report on Implementation of Investment Projects, Programs
The investment program of JSC “Transneft” for 2012 is based on the Main Lines of the JSC “Transneft” investment activity up to 2020 and is designated to develop the infrastructure of the trunk oil pipeline system. This program was developed taking into account the need to solve state and nationwide tasks set by the President and Government of the Russian Federation.
The pipeline capacities created ensure the expected growth of oil extraction in promising Russian regions; they also allow for securing the independence of Russian oil export from transit through the territory of neighbouring states, which promotes the role of Russia in securing international energy safety.
The investment activity of JSC “Transneft” is related to performance of the strategic tasks in the area of development of the pipeline system from the place of the oil extraction to sale markets, diversification of oil flows with entering new sale markets of the Asia-Pacific countries and USA, and maintenance and strengthening of the Company’s positions in the traditional markets.
The Investment Program of JSC “Transneft” for 2012 was approved by the Board of Directors of the Company in December 2011 (Minutes No. 18 dated December 15, 2011). In November 2012, the Investment Program was adjusted pursuant to the resolution of the Board of Directors of JSC “Transneft” (Minutes No. 16 dated November 22, 2012). The total adjusted volume of financing for 2012 equalled 108,327 mln rubles.
The actual volume of financing of the Company’s Investment Program in 2012 amounted to 109,036 mln rubles, the planned volume amounting to 108,327 mln rubles. Therefore, in 2012 the Investment Program of JSC “Transneft” was performed by 100.7%, with the deviation from the planned financing volume totalling 709 mln rubles.
Given the overall performance of the planned indicators of the JSC “Transneft” Investment Program, realization of financing of each investment project comprising the Investment Program was characterized by its own features. The actual volumes of financing of some projects exceed the planned indicators, which was caused, above all by performance of work ahead of the contractual schedules and early payment of advances for the construction and assembling operations. The actual volume of financing of other investment projects decreased as compared with the planned indicators, which was caused either by payment deferral till 2013, or by savings obtained as a result of project implementation completion.
The information on performance of the investment projects comprising the JSC “Transneft” Investment Program for 2012 is set forth in Appendix № 4..