Azerbaijan, Baku, Jan. 30 / Trend E.Ismayilov /
Sarmatia International Pipeline Company (ICC) awaits activation of support for Brody-Plock (Adamova zastava) oil pipeline project from the member countries in the form of signing an intergovernmental agreement, the Director General of the ICC, Sergei Skripka told Trend.
According to him, all the countries have expressed their willingness to participate in multilateral talks to prepare for the signing of the agreement, except for the Polish side.
"The Polish side hasn't yet expressed itself in any way," Skripka said.
According to him, this year, preparation of the technical component of the pipeline project, as well as the process of land acquisition are planned within the project. However, increase of the ICC's authorized capital is required for implementation of these works.
Skripka stated that according to preliminary estimates, three times increase of authorized capital is required. If currently the authorized capital of the company amounts to 20.06 million zloty (by November last year, the capital was 14 million zloty), under the three-fold increase it will amount to 60 million zloty.
Sarmatia ICC was created on July 12, 2004 by Ukrtransnafta and the Polish company PERN Przyjazn to attract investment to design and completion of Odessa-Brody oil pipeline to Plock.
Research on route selection for the projected Brody-Adamova Zastava pipeline has been completed. The length of the route will be 377 kilometers, 120 kilometers of which pipeline will be built on the territory of Ukraine and 257 kilometers - in Poland.
Brody-Plock oil pipeline construction project is included as a priority in the EU operational program "Infrastructure and Environment". This program reserves funds amounting to 495 million zloty for implementation of the aforementioned project (about 177 million dollars).
Odessa-Brody oil transportation project was planned to diversify oil supplies to Ukrainian refineries and develop country's transit capabilities. Construction of the pipeline was completed in May 2002. The pipeline has a length of 674 kilometers, the pipe diameter is 1,020 mm. During the first stage, capacity of the pipeline and the terminal is 9-14 million tons per year.
The official exchange rate for Jan. 30 is 3.0938 PLN / USD.