16.3.2007

Reuters: Russia, Greece, Bulgaria sign oil pipeline deal

Reuters: Russia, Greece, Bulgaria sign oil pipeline deal
Greece, Russia and Bulgaria sealed on Thursday a long-awaited deal to build a trans-Balkan pipeline that will pump cheap crude to the Mediterranean and consolidate Russia's influence in the European energy market, reports news agency Reuters.

Once launched in 2009, the 950 mln euro link will run 279 km from the Bulgarian Black sea port of Burgas to the north Aegean port of Alexandroupolis, bypassing the congested Turkish Bosphorus Straits.

It will pump 700,000 barrels per day, or 35 mln tons of crude a year, with potential to rise to 50 mln per year, said Reuters.

Since the pipeline idea was conceived in 1993, negotiations often saw the ambitious deal on the brink of collapse.

Tanker delays at the Bosphorus Straits are costing oil companies nearly $1.0 bln a year, and the pipeline is one of several in the making to diversify transport routes.

The deal will increase Moscow's influence over the European energy market and the pipelines that deliver oil and gas, though one analyst downplayed any talk of Russian market dominance, said the news agency.

Russian oil producers Rosneft and Gazprom Neft and pipeline monopoly Transneft will now share 51% of the pipeline, ensuring Russia is in command. Greece and Bulgaria will share the remaining 49%.

Sofia's stake will be handled by state firms Bulgargaz and Transexportstroy but it could sell part or all of its share to oil majors such as KazMunaiGas or Chevron.

Greek partners are Hellenic Petroleum Caspian Pipeline Consortium, which takes oil from the Caspian to the Black Sea, but he had received no promises it would.

From: Dnevnik