Russian govt approves oil product pipeline agreement with Congo

MOSCOW. Sept 17 (Interfax) - The Russian government has approved the text of an intergovernmental agreement with the Republic of Congo on cooperation in the construction of the Pointe-Noire-Lutete-Maloukou Trechot oil product pipeline.

Zakneftegazstroy-Prometey LLC and the National Petroleum Company of Congo, as customer, will be the companies authorized and responsible for delivering the project, according to the agreement. The companies will set up a joint venture, in which the Russian share will be 90%, while Congo will have 10%.

A 25-year build-own-operate-transfer concession deal will be concluded with a joint venture with a guaranteed pumping tariff, which will ensure the pipeline's utilization and return on investment.

Russian Ambassador to the Republic of the Congo Georgy Chepik said earlier that the pipeline would run between the African country's biggest cities, Pointe-Noire and the capital Brazzaville.

The agreement states that if a potential dispute between the parties cannot be resolved through negotiations, then the Russian party may choose to refer it to the Dubai International Arbitration Centre (UAE) in accordance with the DIAC Arbitration Rules 2022 or to UNCITRAL ad hoc arbitration. The arbitration will be administered by the Dubai International Arbitration Centre. The arbitration takes place in the UAE in both cases.

Alexander Ilyin is the owner of Zakneftegazstroy-Prometey LLC, according to the Unified State Register of Legal Entities.