Feasibility Study of Brody-Plock oil pipeline to be prepared in 2011

Oil&Gas Materials 10 January 2011 19:29

Azerbaijan, Baku, Jan. 10 / Trend E.Ismayilov /

The Sarmatia International Pipeline Company (IPC) will complete the feasibility study on the Brody- Plotsk oil pipeline construction project by late 2011, General Director of the Sarmatia IPC Sergei Skripka told Trend on Monday.

According to him, the final feasibility study will be obtained only after the preparation of a Environmental Impact Assessment (EIA) report. After preparing the EIA, the feasibility study will be introduced additions to bring it into line with the prepared report.

After the preparation of an EIA and receive of environmental permit by the IPC after consultation with the Polish ministries and agencies will, the company will submit an appeal to the European Commission for funding the construction project.

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 working version of the feasibility study was already referred for initial assessment of the Cracow Oil and Gas Institute.

Skripka said the institute, in turn, in due course gradually submits its comments and suggestions on the documents. The feasibility study will be ready for submission to relevant government agencies in Poland following the amendments in a month, he added.

The German ILF Company develops EIA and feasibility study of this project. The German ILF Company earlier won the tender announced by Sarmatia. 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 was established to prepare the feasibility study of the pipeline. The German company leads the consortium.

Skripka said ILF has already begun preparatory work for the EIA.

On March 15, Sarmatia selected a legal adviser (Polish company), which will serve the IPC within the work related to the execution of the contract prior to receiving financing from EU funds.

The Odessa-Brody oil transportation project sought to diversify oil supplies to Ukrainian refineries and develop the country's transit potential. The construction of the pipeline was completed in May 2002. Its trunk has a length of 674 kilometers, with a pipe diameter of 1,020 millimeters. The capacity of the pipeline and the terminal is 9-14 million tons per year during the first stage.

Sarmatia was created under an oil transportation project via the Odessa-Brody-Gdansk-Plotsk route. Sarmatia's participants include SOCAR, the Georgian Oil and Gas Corporation Ltd. (GOGC), Ukrainian Ukrtransnafta, Polish Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn SA and Lithuanian AB Klaipedos Nafta.