Congo intends to sign oil product pipeline agreement with Russia on Sat

MOSCOW. Sept 27 (Interfax) - The Republic of Congo intends to sign an agreement on the construction of an oil product pipeline in the country with Russia on Saturday, Congo's Minister of Hydrocarbons Bruno Jean-Richard Itoua told journalists on the sidelines of Russian Energy Week.

Zakneftegazstroy-Prometey LLC will sign the deal on behalf of Russia.

The minister did not comment on the pipeline's capacity as the feasibility study is not yet ready.

Itoua also said Congo and Russian companies, including Zarubezhneft, were discussing their participation in oil and gas projects in the country, but no new agreements had been signed yet.

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.

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