Posted on 04/20/2006 11:07:09 AM PDT by lizol
Slovaks join Polish-Ukraine Caspian oil project 2006-04-20 16:50
BRATISLAVA, April 20 (Reuters) - Slovak officials said on Thursday they had agreed on a project to join two pipeline projects and bring up to three million tonnes of Caspian oil annually through Slovakia to Central Europe.
Extending Ukraine's Odessa-Brody pipeline into Poland and sending Caspian oil into Slovakia became a hot topic after pro-Western Ukrainian President Viktor Yushchenko came to power in 2004.
The project envisages reversing the flow of a Ukrainian pipeline that brings Russian crude to the Black Sea port of Odessa so that it brings Caspian oil instead through Ukraine to Poland and the Baltic sea.
On Thursday officials agreed to allow oil to also flow into Slovakia -- and onward to the Czech Republic -- as part of the project.
"Today was a breakthrough. We should have a business plan by mid-May," said Dagmar Repcekova, an official at the Slovak Foreign Ministry, after a meeting with officials from European Commission and Ukrainian, Slovak and Czech companies.
Officials have said that Caspian oil could begin flowing into Poland within three years. The European Bank of Reconstruction (EBRD) had said in the past it might participate in the Polish-Ukraine part of the project, seen worth around 600 million euros.
Faouzi Bensarsa, an energy official at the European Commission's External Relations Directorate General, said including Slovakia in the overall plan was a natural extension since there is already a pipeline between Ukraine and the capital Bratislava that has spare capacity. "We have everything we need -- a new source of oil, demand for the oil and free capacity," he said. "All we have to do is work out the technical details."
Sticking points include transit fees and the cost of building reservoirs in Slovakia to handle Caspian crude, officials said.
=I think the whole issue is first of all about Azer oil=
Yes, but it's still not enough to make even BTD profitable.
=Turkmen, Iraq, Iran=
Very funny.
=I believe if they are any problems it is rather on our side
=
Kazakhstan did not started building under-Caspian pipeline or even terminals to deliver oil to Azerbaijan. But already builds pipeline which will transport Kazakh and Russian oil to China.
BTW do you know how many tech oil the planned Polish-Ukraine pipeline needs?
I read the estimation that our pipeline would need to carry between 15 and 25 millions of tons. Kazakh oil is definitely necessary and Nazarbayev is aware that only these eventual deliveries keep him safe from any critiques and possible economic sanctions aka Belarus. Kazakh economy under Nazarbayev going quite well in comparison with other central Asian republics. For example he allowed more western capital to be involved in Kazakhstan than Russia, especially in energy sector. Talking about our talks with Kazakhs, We offered to their national monopoly KazMunaiGaz to participate in building of the remaining part of the pipeline. They would be one of the co-owners not just a supplier.
Kazakstan already have Caspian oil terminal in Aktau and plans to expand its captivity and built another terminal in Kuryk. The first terminal currently transport oil to the Russian Novorossisk. Like Grzegorz wrote above, everyone has own price.
Look how long they are considering Odessa-Brody extension, somehow I don't belive in any project from Romania. Especcially if state budget would not be involved.
"Very funny."
What's so funny ?
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