A new pipeline stretching from Russia's Timan-Pechora region in north Siberia to the port of Primorsk on the Baltic Sea will be completed by the end of the year.
The first pipeline dedicated to crude from the oil-rich Caspian basin, 15% owned by ChevronTexaco (CVX) and stretching about 1,000 miles from the Tengiz field in Kazakhstan to the Black Sea port of Novorossisk, started operations on Oct. 15. On the drawing board is a pipeline that would run from Azerbaijan across Georgia and Turkey to the Mediterranean port of Ceyhan.
Producers in Russia's traditional oil patch are ramping up production and exports.
Royal Dutch/Shell already pumps 35,000 barrels of oil per day. ExxonMobil (XOM) and others are also exploring reserves estimated at 8 billion barrels.