...

German company prepares feasibility study for Brody-Plotsk oil pipeline

Oil&Gas Materials 11 October 2010 19:35 (UTC +04:00)

Azerbaijan, Baku, Oct. 11 /Trend, E.Ismayilov/

The German ILF Company is actively engaged in the preparation of a feasibility study and environmental impact assessment of the construction of Brody-Plotsk oil pipeline that will connect the oil transportation systems of Ukraine and Poland, the Sarmatia International Pipeline Company (IPC) CEO Sergei Skripka told Trend in a telephone conversation.

"Work on the preparation of feasibility study is under way. The feasibility study of the project should already be prepared by Dec. 10," said Skripka.

ILF Company already has experience of working in this regard. In 2006, ILF participated in the preparation of feasibility study of the Odessa-Brody-Plotsk pipeline.
Skripka said according to the contract signed between the parties, the feasibility study of construction of Brody-Plotsk pipeline should be ready by Dec. 10 this year. Also during the preparation of the feasibility study, the endpoint of the pipeline will be determined.

A consortium of three companies has been established to prepare the feasibility study of the pipeline. The leader in the consortium is the German company.

Brody-Plotsk oil pipeline project was named as priority project in EU Infrastructure and Environment Operational Programme.

About 495 million zlotys (about 120 million euros) was allocated to this project under the Infrastructure and Environment program. The IPC must fulfill several conditions to obtain this funding (of course, it is part-funding). Some of these conditions are reflected in the preliminary contract, which the company had signed earlier with the Krakow Oil and Gas Institute operating as the coordinator of the program. The Institute has been monitoring fulfillment of these conditions. Based on the preliminary agreement, the company will have a number of additional studies to clarify the route and develop a detailed feasibility study for construction of the pipeline.

The Odessa-Brody oil project plans to diversify oil supplies to Ukrainian refineries and transit facilities for the country's development. The construction of Odessa-Brody was completed in May 2002. The pipeline has a length of 674 kilometers and a diameter of 1,020 millimeters. The pipeline and the terminal's capacity are 9-14 million tons per year. Work within the project is carried out by the Sarmatia international oil pipeline company, which was founded in 2004. Company participants are SOCAR, the Georgian Oil and Gas Corporation, the Lithuanian Klaipedos Oil, the Polish PERN Pshiyazn and the Ukrainian Ukrtransnafta.

Latest

Latest