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Sarmatia determines contractor to prepare feasibility study for construction of Brody-Plotsk pipeline

Oil&Gas Materials 30 August 2010 19:13 (UTC +04:00)

Azerbaijan, Baku, August 30 /Trend, E.Ismayilov/

German ILF Engineering Company has gained the bid on the preparation of a feasibility study (FS) and environmental impact report of construction of the pipeline (Brody-Plotsk), which will connect the oil transportation systems of Ukraine and Poland, Sarmatia IPC CEO Sergei Skripka told Trend by telephone on August 30.
"The tender ended with the victory of the ILF Company. This is a German company that has great experience. But in our case the most important thing is that they have extensive working experience with our project. In 2006, ILF participated in the preparation of feasibility study of the Odessa-Brody-Plotsk," said Skripka.

According to Skripka, upon the contract signed between the parties, the feasibility study of Brody-Plotsk pipeline construction should be prepared by 10 December this year. Also during the preparation of feasibility study, the endpoint of the pipeline will be determined.   

A consortium, consisting of three companies, has been organized for the preparation of the feasibility study for the pipeline. The leader of the consortium is the German company.

"ILF acts in the consortium with other companies, but it is the leader of the consortium," said Skripka.

Feasibility study of the whole oil transportation corridor was prepared formerly.

It will be possible to speak about the beginning of construction of the Brody-Plotsk pipeline after the targets stipulated in the preliminary contract. But the work must be completed no later than the end of 2014, which is a strict requirement of the operating program "Infrastructure and Environment".

Oil transportation project "Odessa-Brody" was to diversify oil supplies to Ukrainian refineries and develop transit potentialities of the country. The construction of the Odessa-Brody pipeline was completed in May 2002. Trunk has a length of 674 kilometers, pipe diameter - 1,020 mm. Capacity of the first stage of the pipeline and the terminal is 9-14 million tons per year.

Participants of Sarmatia are SOCAR (State Oil Company of Azerbaijan), Georgian Oil and Gas Corporation Ltd. (GOGC), Ukrainian Ukrtransnafta, Polish Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn SA and Lithuanian AB Klaipedos Nafta with equity participation of 24.75 percent for the main parties and one percent in the Lithuanian company.

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