Azerbaijan to Decide whether to Transport Oil via Odessa-Brody-Plotsk after Examining Feasibility Study
Azerbaijan, Baku / Trend corr S. Aliyev / The State Oil Company of Azerbaijan Republic (SOCAR) received some 5,940,000 shares in the company Sarmatia, which was established for the implementation of the Odessa-Brody-Plotsk pipeline project, SOCAR President, Rovnag Abdullayev, said on 15 October.
Azerbaijan, as oil exporter, is interested in the diversification of supply routes for its oil. "The more routes we have, the better," he said.
Azerbaijan's activities in Sarmatia are not supposed to go beyond the development of a feasibility study for Odessa-Brody-Plotsk. Depending on the results of the feasibility study, Azerbaijan will decide whether to transport its oil via the pipeline. The feasibility study is expected to be completed by the end of 2007.
Sarmatia also includes the Lithuanian company AB Klaipedos Nafta and the Georgian Oil and Gas Corporation (GOGC). The stockholders decided to make the authorized capital of the company between 2 and 12mln zlotys with the establishment of an additional 20,000 new shares. Ukrtransnafta, Przyjazn, GOGC and SOCAR will have 5,940,000 shares each and AB Klaipedos Nafta - 240 shares.
The Odessa-Brody main pipeline was constructed in 2001. It has been out of use for several years. At the end of June 2004 the Ukrainian Government allowed the use of the pipeline to transport Russian oil.
Ukraine's Ukrtransnafta oil company and the Polish oil transport monopoly Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn SA established Sarmatia JV in July 2004 for the implementation of the project to construct the Brody-Plotsk section of the Odessa-Brody-Plotsk oil pipeline. The key directions in the company's activities are development of design estimates, attraction of investments and enabling construction work.