Baku, Azerbaijan, Aug. 18
By Ilkin Shafiyev – Trend:
The cost of the Brody (Ukraine)-Adamova Zastava (Poland) oil pipeline project has been reduced by approximately 130 million euros as a result of a feasibility study update, the Sarmatia International Pipeline Company (IPC) CEO Sergei Skripka told Trend.
The Brody-Plock (Adamova Zastava) oil pipeline is currently the only incomplete part of the Euro-Asian Oil Transportation Corridor (EOTC). The EOTC project will give the Caspian states an additional reliable route for oil supply to the European markets, as well as new customers and opportunities to work in adjacent markets. The length of the pipeline will be 377 kilometers, of which 120 kilometers will be built in the territory of Ukraine, 257 kilometers – in Poland.
"This year, we have finished updating the feasibility study of the project. According to its results, the project's cost has been reduced from 490 to 360 million euros," Skripka said.
Based on the findings of the feasibility study, 30 percent of the funding should be invested by the co-founders of the company, the CEO said, adding that the project can be self-supporting and implemented without grants.
Previously, it was expected that the project will receive a grant from the European Commission.
"In general, it is too early to talk about it, because we are not at the stage of organizing the funding. But of course, partial funding will need to be obtained from our co-founders. I think it will be at the level of 30 percent, as recommended by the feasibility study. In addition, the project to build the Brody-Adamova Zastava oil pipeline, as part of the Euro-Asian Oil Transportation Corridor, is a project of common European interest and at the same time a priority project for the European energy community. Being in these two lists, the project is eligible for concessional financing from the European Fund for Strategic Investments. Financing should be provided by the European Investment Bank," said Skripka.
Sarmatia IPC was established on July 12, 2004 by Ukrainian UkrTransNafta and the Polish company PERN Przyjazn.
The participants of Sarmatia IPC are the State Oil Company of Azerbaijan (25.32 percent), Georgian Oil and Gas Corporation Ltd. (16.09 percent), UkrTransNafta (28.79 percent), Polish Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn S.A. (28.79 percent) and Lithuanian AB Klaipedos Nafta (1 percent).
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