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. Last Updated: 07/27/2016

$2.3Bln to Be Invested in Yugansk

Yuganskneftegaz, state-controlled Rosneft's biggest unit, will raise investments 36 percent this year to 60 billion rubles ($2.3 billion) to boost output and build a power generator and gas pipelines.

Yugansk will drill wells and improve technology to raise output 7 percent to 60 million tons of oil this year and 76 million tons by 2010, general director Vladimir Bulba said in Nefteyugansk on Tuesday.

Yugansk is building a gas-fired power plant with 300 megawatts of capacity, which will open by 2009, to ensure Yugansk has adequate power supplies to boost output. Electricity demand in oil-rich region where Yugansk operates is growing at a rate exceeded in Russia only by the country's two biggest cities.

Rosneft acquired Yugansk after the government seized it from Yukos and sold it at auction in December 2004 to recover some of the billions in dollars of tax debts it was claiming from now-bankrupt Yukos.

Yukos creditors met in Moscow on Tuesday with the company's external manager to review asset values and the proposed procedures for selling them, Nikolai Lashkevich, spokesman for external manager Eduard Rebgun, said Tuesday.

The asset values and timing, procedures and conditions for the sales, will be published in a Russian newspaper after the creditors review them, he said. Appraisers last month valued what remains of Yukos at more than $22 billion.