Long-Term Charters Planned By Sohio
The Standard Oil Co. (Ohio) reported that the company will have spent $140 million by the end of this month as its share of engineering, research, design and equipment costs on the Trans-Alaska Pipeline. "Sohio's share of the Alaskan pipeline expenditures this year might amount to $200 million to $250 million if construction starts as scheduled this spring since the right-of-way permit, applied for in June 1969, was issued January 23," said Charles E. Spahr, Sohio board chairman.
Total capital expenditures by Sohio are expected to be in the range of $2 billion to $2.5 billion over the next five years, primarily for the development of Alaskan oil and gas reserves and construction of the Trans-Alaska Pipeline.
In addition to the expenditures in Alaska, Sohio expects to spend about $200 million for completing an expansion and modernization of a refinery in Marcus Hook, Pa., and conversion of Sohio's Toledo, Ohio refinery to processing high sulfur crude oil. The Marcus Hook program will be completed late this year, and the Toledo project in late 1975.
Sohio plans to enter into longterm charters of tankers over the next few years to transport foreign oil for use in its refineries and to move Alaskan oil to the 'West Coast. The cost of these tankers to their owners will be in the area of $500 million to $750 million.
Mr. Spahr said the $140 million
spent thus far on T A P S is the first
part of Sohio's share of the estimated