Baku, Azerbaijan, March 3
By Emil Ismayilov - Trend:
Sarmatia International Pipeline Company examines the opportunity of financing the construction of the Brody-Plotsk oil pipeline (Adam's gate) project from new sources, Sarmatia International Pipeline Company director general Sergei Skripka told Trend on Feb. 28.
"The funds worth 120 million euros were reserved to support the project as part of the EU program "Infrastructure and Environment"," he said.
The decision can only be taken unanimously in accordance with the regulations of the general meeting of Sarmatia participants.
There was no opportunity to use these funds because of the disagreement of the Polish side.
Currently, Sarmatia is examining the opportunity of drawing funds from other sources (funds). An opportunity of full transition to a commercial variant of the project implementation is being considered.
"The project is still in the list of priority projects of the European Commission," he said.
"Though the EU new financial perspective does not envisage the allocation of money for implementing the projects related to oil, the current preliminary consultations testify to the fact that there may be an opportunity to finance such projects from other funds."
Brody-Plotsk oil pipeline (Adam's gate) is an integral part of the Euro-Asian Oil Transportation Corridor (EAOTC).
The research on choosing the oil pipeline's future route has been completed. The length of the route will be 377 kilometers, some 120 kilometers of which will be built in Ukraine, and 257 kilometers in Poland.
At the moment Sarmatia's participants include the State Oil Company of Azerbaijan (SOCAR), the Georgian Oil and Gas Corporation Ltd. (GOGC), Ukrainian Ukrtransnafta, Polish Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn S.A. and Lithuanian AB Klaipedos Nafta. Each of the main participants has 24.75 percent of equity participation and the Lithuanian company has one percent.
Sarmatia IPC was created by Ukrtransnafta and the Polish PERN Przyjazn company on July 12, 2004 to attract investments to design and complete the Odessa-Brody oil pipeline to Plotsk.
The Odessa-Brody oil transportation project was planned to diversify oil supplies to Ukrainian refineries and develop the country's transit potential. The pipeline's construction was completed in May 2002. The main line has a length of 674 kilometers, with a pipe diameter of 1,020 millimeters. The pipeline's and terminal's capacity is 9-14 million tons per year.
Translated by NH
Edited by CN