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Azerbaijani energy ministry calls volume of oil supplies to Ukraine

Oil&Gas Materials 5 November 2010 17:56 (UTC +04:00)

Kazakhstan, Astana, Nov. 5 / Trend A.Maratov /

Azerbaijan supplied over one million tons of oil to Ukrain during the first three quarters of this year, Azerbaijani Industry and Energy Minister Natig Aliyev said in an interview with Trend today in Astana.

"We already deliver the Azerbaijani oil to the Ukrainian market via the Odessa-Brody pipeline and the refinery in Ukraine, and then it is sold at retail in the form of petroleum products. That is, the work is underway. More than one million tons of oil is delivered from Azerbaijan to Ukraine since early 2010," he added.

Regarding the construction of the Plotsk- Gdansk pipeline, which is also part of the Odessa-Brody- Plotsk- Gdansk pipeline, Aliyev said the project was initiated and implemented by the European Union. The section of pipeline should be completed for its implementation.

"But due to some change in the structure of oil pipelines linking Russia and Ukraine, there are other options, on which Ukraine has to work and submit their proposals," he noted.

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.

Sarmatia was created under the project of oil transportation via the route Odessa-Brody- Plotsk- Gdansk. Azerbaijan has the role of one of the major suppliers in this route. Azerbaijan can also operate as a transit country. Azerbaijan can supply not only its oil, but oil from Central Asia, for example from Kazakhstan via this pipeline.

The work is underway in preparation for a feasibility study on the Brody- Plotsk pipeline. The work on preparing the feasibility study is scheduled to be completed by late 2010.

The Brody- Plotsk oil pipeline project was included as priority project in an operating program of the European Union (EU) "Infrastructure and Environment".

Participants of Sarmatia include 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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