Sarmatia pipeline company to significantly increase authorised capital

Oil&Gas Materials 29 October 2012 14:59 (UTC +04:00)

Azerbaijan, Baku, 29 October / corr. Trend E.Ismayilov /

In November, a meeting between heads of co-founder companies of the Sarmatia International Pipeline Company will be held, the director general of the company Sergei Skripka told Trend on Monday.

According to him the main purpose of the meeting is the further financing of the company.

Sarmatia was created on July 12, 2004 by Ukrtransnafta and the Polish company PERN Przyjazn to attract investment to the design and complete the Odessa-Brody pipeline to Plotsk.

"In order for the company to continue to fulfil its function, it has to be financed as the society has goals linked with the preparation of technical projects and issues related with land acquisition. So far contracts have to be signed with the landowners on the right of usage for the construction of the pipeline, "Skripka noted.

He said the implementation of the planned work should begin in 2013. According to preliminary estimations, some 10-15 million euros may be required for this work.

"Most likely this will be implemented by increasing the authorised capital of the company," Skripka stated.

According to him, adoption of this decision will be enough for the company to start fulfilling the set goals.

"It is natural, that an increase in capital is a process that will take some time, but the decision would give us opportunities for further work," Skripka noted.

The authorised capital of the company is currently five million euros.

A study on route selection of the future Brody-Adamova Zastava pipeline has been completed. The route's length will be 377 kilometres, with 120 kilometres of the pipeline waiting to be built over Ukraine and 257 kilometres in Poland.

Ecological and environmental parameters of the project are planned to be developed at the end of this year into early 2013 to apply to the European Commission for a final decision on financial support of the project.

The Brody-Plotsk oil pipeline project was named as a priority by the EU Infrastructure and Environment Operational Programme. About 495 million zlotys (about 177 million euro) were allocated to the project under the programme.

The Odessa-Brody oil transportation project sought to diversify oil supplies to Ukrainian refineries and develop the country's transit potential. The pipeline's construction was completed in May 2002. Its trunk has a length of 674 kilometres, with a pipe diameter of 1020 millimetres. The pipeline and terminal capacity provided nine to14 million tons per year during the first stage.