Mr Sechin addressed the audience during the ceremonial welding of the first juncture of an ESPO branch in the environs of Skovorodino, Amur Region. He said, in particular: "This is a stride in Russian-Chinese relations as Russia and China are starting first-ever joint pipeline construction. This is another ESPO branch from Skovorodino to Mohe. I think it takes future generations to fully appreciate its significance."

While talking to journalists, Mr Sechin said that all welding works on the linear ESPO pipeline portion were finished, and Transneft would carry on the final stage of the works. "We should not forget that much remains to be done for the pipeline - in particular, pumping stations and the Kozmino special seaport." As he said, Transneft had coped fully with the construction of three out of the seven pumping stations, and the other four would be ready before the end of the year. Mr Sechin said he was sure that the first pipeline stage would be finished on schedule within a year.

The construction of the first stage of ESPO is estimated at roughly 420 billion roubles - 320 billion of this for the linear portion, and another 69 billion for the Kozmino port. The rest will be used for the construction of other facilities. "The second stage will cost a bit less," Mr Sechin said, and explained that it was 2,100 kilometres long, as against the first, 2,690 km. The costs will be lower also thanks to the experience Transneft has gained while laying the first stage.

The Talakanskoye oil field will account for 6 million tonnes of the entire East Siberian yield, Verkhnechonskoye for 9 million, and Vankorskoye, at peak load, 25 million. The Lodochnoye, Sugdinskoye and several other newly prospected fields whose exploitation has not started yet will yield an approximate total of 17 million tonnes, Mr Sechin said.

He added that the ESPO pipeline would allow us to exploit new fields, previously hard of access.