Sarmatia compant agrees with Polish government conditions for preparation of EIA for Brody-Plotsk oil pipeline

Azerbaijan, Baku, Oct. 15 /Trend, E.Ismayilov/

Sarmatia International Pipeline Company (IPC) coordinates with the Government of Poland the requirements for the preparation of a report on the environmental impact assessment (EIA) and social impacts of the construction project of Brody-Plotsk oil pipeline that will connect the oil transportation system of Ukraine and Poland, the IPC general director Sergei Skripka told Trend on Friday.
"We are now at a stage when it is necessary to agree upon a lot of issues with officials of Poland. Because the work that must be completed to prepare an environmental impact report of the project depends largely on what requirements will be made to this report. They, unfortunately, have not been standardized, so much depends on the decision of concrete agencies. We now co-ordinate this issue," said Skripka.

According to him, the Polish side, and particularly country's ministry of regional development supports Sarmatia in the organization of necessary meetings with the representatives of relevant ministries and agencies.

The environmental impact assessment report and a feasibility study of this project are prepared by German ILF Company. According to Skripka, the company must undertake all work relating to the preparation of documentation required for filing and obtaining financing from European funds.

The German ILF Company is actively engaged in the preparation of a feasibility study and it should already be prepared by Dec. 10 of this year. 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. 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.

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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