Eurasian Oil Transport Corridor to play important role in energy security: interview with Sarmatia company head

Azerbaijan, Baku, June 27 / Trend E. Ismayilov /

Interview of Trend with director general of Sarmatia international pipeline company Sergei Skripka dealing with development of Eurasian oil transporting corridor.  

What stage covers launching of Azerbaijani oil transportation via Odessa-Brody pipeline?

Project of Eurasian Oil Transport Corridor is unique from the point of view of union of economic and political interests of countries participating in the project. It can be basis for creation of future Capian-Black Sea-Baltian united transit space. It is designated to play important role in increasing of energy security level of participants-countries and Europe. Urgency of this project increases amid occurring local and increasing global problems with energy resources supply.   

We have completed preparation of feasibility study project of corridor. It confirms its technical potentialities and economic advisability. Estimations and forecasts made by experts give no doubt in presence of hydrocarbon volumes in the Caspian Sea which will ensure profitability of corridor. 

Our future plans include presentations of project, talks with companies extracting oil in the Caspian Sea, as well as potential consumers of oil in Europe. Legal regulation of oil transport corridor functioning remains important direction of work. It envisages signing of several inter-state and corporative agreements. Its financing remains one of major terms of our project realization. This task is one of priorities of Sarmatia work. We consider different variants.

What are prospects for realization of Brody-Plotsk pipeline construction?

Feasibility study envisages stage-by-stage realization of corridor project. Caspian oil will be supplied first from Azerbaijan to refineries of Ukraine and South-Eastern Europe at the first stage. It will be supplied using free capacities of south branch of Druzhba main line oil pipelines.

This stage does not require big investments. It is rather easy in realization. The second stage envisages junction of Ukrainian and Polish oil transport systems by constructing Brody-Adamova Zastava oil pipeline. Caspian oil will be supplied to Polish refineries at this stage after construction. 

Oil transport capacities of corridor route is planned to be extended. It will allow supplying of oil to Germany and Baltic countries.

It is planned to transport up to 40 million tons of Caspian oil annually. It goes without saying that these volumes are distant prospect.

We expect 5-6 million tons per year at initial stage.

Is it possible to exclude this project from list of strategic projects financed together with EU?

Construction of Brody-Plotsk oil pipeline or Brody-Adamova Zastava was envisaged in the second stage of realization of corridor project. But this stage will be implemented together with the first one. Construciton of Brody-Adamova Zastava oil pipeline was included in list of projects that can pretend for getting partial financing within EU operation program Infrastructure and environment. Roughly €110 million was reserved for it. This sum can increase and reduce depending on what expenses will be appreciated by European experts referring the project. Process of getting this money is hard and requires fulfilling many terms. One of them is observation of schedule of project realization. 

Gap in Brody-Adamova Zastava project was stipulated by slight delay occurred while designing feasibility study of Eurasian oil transport corridor, as well as choice of responsible executor is not fully coordinated.

Up to recent time state operator of Polish oil transportation system Pshiyazn dealt with this project.

Presently, its delivery to Sarmatia is being considered. It is logical from the point of view of preservation of integrity of Eurasian oil transport corridor project.

Certainly, existing gap can be formal basis for excluding Brody-Adamova Zastava project from a list of priorities. Polish press signaled about this threat. Moreover, constructive dialogue supported between Sarmatia and Polish ministry of economy allows considering that this extreme measure will not be applied. Polish ministry of economy is curator of the program.  

We are convinced that we will manage to catch up with gap and realize mentioned project in time.

Project got new impulse of development and real chances for successful realization after expanding staff of Sarmatia participants and joining of Azerbaijani side in person of SOCAR (the Azerbaijani State Oil Company).

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