Transneft interested in EU view on Burgas-Alexandroupolis pipeline project
MOSCOW. Jan 21 (Interfax) - The delegation from Russian oil pipeline monopoly Transneft that will go to Brussels on Tuesday at the invitation of the European Union is prepared to share information on the company's investment program and discuss the Burgas-Alexandroupolis oil pipeline project, Transneft deputy vice president Sergei Khodyrev, who will lead the delegation, told reporters.
Transneft received an invitation on December 12 from the European Commission's Energy Directorate to attend a meeting on crude oil and oil products. Representatives of the industry agencies of all EU members countries are expected to attend.
Khodyrev said Transneft will make a presentation of completed projects and the company's future plans. "Russia is the main supplier of oil to the EU. They are interested in the company's plans, particularly after the launch of ESPO-2 and BPS-2," he said, referring to the second phases of the Eastern Siberia - Pacific Ocean oil pipeline and the Baltic Pipeline System.
Transneft, in turn, would like to hear EU officials' views on relations with the company. "Transneft has its own questions for the EU. For example, we independently resolve issues with transit countries. We don't see help from EU countries," Khodyrev said.
Transneft would also like to discuss the Burgas-Alexandroupolis project. "We didn't get a response and real steps of assistance on this project, which is now frozen," Khodyrev said, adding that there is a chance of unfreezing this project. "The straits won't get any wider, but there will be more oil in the region," he said.
"Burgas-Alexandroupolis is the most economically attractive and best prepared - there's a feasibility study, a company exists, albeit on paper. It could be quickly unfrozen. We'll ask EU representatives what they think about this project," Khodyrev said.
The Burgas-Alexandroupolis project called for the construction of a pipeline with capacity of 35 million tonnes through Greece and Bulgaria in order to reduce oil tanker shipments via the congested Bosporus and Dardanelles straits. The cost of the pipeline was estimated at about EUR1 billion.
Trans-Balkan Pipeline B.V. was founded by TK-BA (Russia) with a 51% stake, Burgas-Alexandroupolis Project Company BG (Bulgaria) with 24.5%, Helpe S.A. - Thraki S.A. with 23.5% and the Greek government with 1%. The founders of TK-BA were Transneft, Gazprom Neft with 33.33% and Rosneft with 33.33%.
The intergovernmental agreement on the project was signed by the governments of Russia, Bulgaria and Greece in 2007. Bulgaria, after dragging its feet on the project for a long time, finally paid all existing debts and announced that it would pull out of the agreement.
After talks in March 2012, it was decided to minimize TBP's expenses to preserve it as the legal entity with the rights to the feasibility study for the project and to avoid new large expenses.
The implementation of the project is being postponed indefinitely, Transneft has said in a report.
