BELARUS NEWS AND ANALYSIS

DATE:

08/11/2007

Belarus might join project to extend Odessa-Brody pipeline to Poland

MINSK. Nov 8 (Interfax) - Belarus is considering joining the project to extend the Odessa-Brody oil pipeline to Gdansk and integrate it into the Druzhba system, a source at Belneftekhim told Interfax.

"Poland wants to invite companies from Belarus, Moldova, and Kazakhstan to the project to extend the Odessa-Brody pipeline to Gdansk, but Belarus is interested in integrating the pipeline into the Druzhba system," specialists said.

They said this would involve the construction of connectors between the two trunk pipelines. "If two pipelines are practically next to each other why not connect them? This project could benefit all of the participants," they said.

Belarus had previously announced it planned to use the ability to pump oil in the Odessa-Brody pipeline in reverse to transport Caspian oil and oil produced in Iran. Ukraine might meet us halfway if Belarus agrees to take part in the project, he said.

Media reports said earlier that Azerbaijan, Lithuania, Georgia, Poland, and Ukraine signed an agreement to join the Sarmatia consortium during the energy summit in Vilnius. The consortium was set up for the Odessa-Brody-Plock-Gdansk project. If the project is conducted the EU countries would gain a partial alternative to Russia for oil supplies. Lithuania was interested in this. A branch line would be built to Lithuania to supply oil to Mazeikiu Nafta. Investment to complete the pipeline to the Baltic Sea coast is estimated at $400 million.

In the first quarter of 2011, Belarus will consider signing an intergovernmental agreement with Ukraine concerning oil shipments to Belarus via the Odessa-Brody pipeline. With this aim in mind, Belneftekhim is supposed to prepare the specifications for designing oil transport infrastructure in Ukraine and Belarus to support such shipments by the end of 2011.

In general, the decree envisions that, if it makes economic sense, Belarus will begin shipping Iranian oil to its refineries by sea and rail 18 months to two years after signing supply agreements. All the facilities that are to be built under this project are supposed to be completed by the end of 2013.

Belarus and Iran signed a contract in July 2007 stipulating that Belarus will be allowed to produce oil at the Jofeir field in southern Iran. The two-year contract is valued at about $450 million. Oil production will total about 40,000 barrels per day once the project reaches its full production capacity.

The Jofeir oil field is located near the Iranian-Iraqi border. Iranian experts say it has capacity to produce about 40,000 barrels of oil per day.

BELARUS-ODESSA-BRODY-PARTICIPATION

Belarus might join project to extend Odessa-Brody pipeline to Poland

MINSK. Nov 8 (Interfax) - Belarus is considering joining the project to extend the Odessa-Brody oil pipeline to Gdansk and integrate it into the Druzhba system, a source at Belneftekhim told Interfax.

"Poland wants to invite companies from Belarus, Moldova, and Kazakhstan to the project to extend the Odessa-Brody pipeline to Gdansk, but Belarus is interested in integrating the pipeline into the Druzhba system," specialists said.

They said this would involve the construction of connectors between the two trunk pipelines. "If two pipelines are practically next to each other why not connect them? This project could benefit all of the participants," they said.

Belarus had previously announced it planned to use the ability to pump oil in the Odessa-Brody pipeline in reverse to transport Caspian oil and oil produced in Iran. Ukraine might meet us halfway if Belarus agrees to take part in the project, he said.

Media reports said earlier that Azerbaijan, Lithuania, Georgia, Poland, and Ukraine signed an agreement to join the Sarmatia consortium during the energy summit in Vilnius. The consortium was set up for the Odessa-Brody-Plock-Gdansk project. If the project is conducted the EU countries would gain a partial alternative to Russia for oil supplies. Lithuania was interested in this. A branch line would be built to Lithuania to supply oil to Mazeikiu Nafta. Investment to complete the pipeline to the Baltic Sea coast is estimated at $400 million.

In the first quarter of 2011, Belarus will consider signing an intergovernmental agreement with Ukraine concerning oil shipments to Belarus via the Odessa-Brody pipeline. With this aim in mind, Belneftekhim is supposed to prepare the specifications for designing oil transport infrastructure in Ukraine and Belarus to support such shipments by the end of 2011.

In general, the decree envisions that, if it makes economic sense, Belarus will begin shipping Iranian oil to its refineries by sea and rail 18 months to two years after signing supply agreements. All the facilities that are to be built under this project are supposed to be completed by the end of 2013.

Belarus and Iran signed a contract in July 2007 stipulating that Belarus will be allowed to produce oil at the Jofeir field in southern Iran. The two-year contract is valued at about $450 million. Oil production will total about 40,000 barrels per day once the project reaches its full production capacity.

The Jofeir oil field is located near the Iranian-Iraqi border. Iranian experts say it has capacity to produce about 40,000 barrels of oil per day.

Source:

http://www.interfax.com/3/333270/news.aspx

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