Russia, Greece and Bulgaria to sign memorandum on building pipeline

Russia, Greece and Bulgaria will sign an intergovernmental memorandum on building the Burgas-Alexandroupolis oil pipeline, Deputy Minister of Energy of Greece Georgios Salagoudis said.
"The memorandum is likely to be signed on March 15, 2005," Mr Salagoudis stated after the end of the tripartite meeting with the participation of head of the fuel and energy complex department of Russia's Ministry of Industry and Energy Anatoly Yanovsky, head of the political office of Minister of Regional Development and Public Works of Bulgaria Kalin Rogachev and representatives of companies.

As Mr Salagoudis said, several important agreements were reached in the course of he consultations held in Moscow the other day.
"First of all, it is the establishment of an initiative group of companies to form an international company to carry out the project," the Deputy Minister said. According to him, such companies -- initiators as TNK-BP, PIK TISE and Stroitransgaz were represented from the Russian side, and Hellenic Petroleum, Latsis Group consortium, and Prometheus Gas -- from the Greek side.
"The Bulgarian side stated that the official presentation of the Bulgarian companies-initiators would take place after the signing of the government memorandum," Mr Salagoudis said.

He recalled that the cost of the Burgas-Alexandroupolis oil pipeline project is estimated at approximately $ 700 mm, and the feasibility study of the project exists in two variants.
"The first variant envisages construction of an oil pipeline with a capacity of 35 mm tpy of oil, and the second variant -- up to 50 mm tpy," Mr Salagoudis specified. "As for the national belonging of oil, all countries, first of all certainly the countries of the Black Sea basin, are invited to participate," the Deputy Minister of Energy said.