Russia: Power Cuts to Main Yukos Production Subsidiary Begin to Bite

Sep 24 - BBC Monitoring Former Soviet Union

Text of report by Russian news agency ITAR-TASS

Nefteyugansk (Khanty-Mansi Autonomous Area), 24 September: The first restrictions on the supply of electricity to installations operated by Yukos's main production company, Yuganskneftegaz, have already led to a reduction in oil extraction. According to company specialists, "daily output of oil has already fallen by several thousand tonnes. If the supply of electricity to licensed areas continues, the oil company could lose up to 7,000 tonnes of oil every day."

On 21 September the power company [Tyumenenergo, electricity company in Tyumen Region of Western Siberia] cut the electricity supply to six of Yuganskneftegaz's substations to 20 MW, or 5 per cent of the total needed.

On 23 September the oilmen paid Tyumenenergo R11m of the R260m they owe. But Tyumenenergo, for its part, told a news conference that the company "would only resume the previous level of supply to Yuganskneftegaz's installations after a timetable has been agreed for the settlement of the entire debt".

The oil company has already warned the leadership of Nefteyugansk, a town which depends entirely on Yuganskneftegaz for its existence, of a possible emergency - if the wells stop working, oil pipelines could rupture.