Azerbaijan, Baku, Dec. 21 / Trend E.Ismayilov /
The work has been completed on preparation of a feasibility study of the pipeline Brody-Plotsk oil pipeline, General Director of the Sarmatia International Pipeline Company (IPC) Sergei Skripka told Trend on Tuesday.
He said the working version of the feasibility study was already referred for initial assessment of the Cracow Oil and Gas Institute.
"In accordance with our schedule and work plan, a working version of the project feasibility study has been completed and sent for the initial assessment to the Cracow Oil and Gas Institute, which is the coordinating entity within the Operational Program Infrastructure and Environment," Skripka said.
He said now it expects to receive suggestions and comments from the institute, and after these, comments will be considered and feasibility studies will be presented to the relevant Polish ministries.
The company expects to receive recommendations from the Cracow Institute in January next year.
Brody-Plotsk oil pipeline project was named as priority project in EU Infrastructure and Environment Operational Programme. About 495 million zlotys (about 120 million euros) was allocated to this project under the Infrastructure and Environment program. The IPC must fulfill several conditions to obtain this funding (of course, it is part-funding). Some of these conditions are reflected in the preliminary contract, which the company had signed earlier with the Crakow Oil and Gas Institute operating as the coordinator of the program.
A report on the environmental impact assessment (EIA) of the construction project of Brody-Plotsk oil pipeline will be developed by late 2011, Skripka said earlier. Skripka said only after the preparation of an EIA and receive of environmental permit by the IPC after consultation with the Polish ministries and agencies will, the company will submit an appeal to the European Commission for funding the construction project.
The German ILF Company will develop EIA and feasibility study of this project. The German ILF Company won the tender announced by Sarmatia. ILF Company already has experience of working in this regard. In 2006, ILF participated in the preparation of feasibility study of the Odessa-Brody-Plotsk pipeline.
A consortium of three companies was established to prepare the feasibility study of the pipeline. The German company leads the consortium.
On March 15, Sarmatia selected a legal adviser (Polish company), which will serve the IPC within the work related to the execution of the contract prior to receiving financing from EU funds.
The Odessa-Brody oil transportation project sought to diversify oil supplies to Ukrainian refineries and develop the country's transit potential. The construction of the pipeline was completed in May 2002. Its trunk has a length of 674 kilometers, with a pipe diameter of 1,020 millimeters. The capacity of the pipeline and the terminal is 9-14 million tons per year during the first stage.
Sarmatia was created under an oil transportation project via the Odessa-Brody-Gdansk-Plotsk route. Sarmatia's participants include SOCAR, the Georgian Oil and Gas Corporation Ltd. (GOGC), Ukrainian Ukrtransnafta, Polish Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn SA and Lithuanian AB Klaipedos Nafta.
