Odesa-Brody oil pipeline promise declined
Admittedly Ukraine has buried $600 million in a huge field stretching the route of the Odesa-Brody pipeline. Now this dry pipe, constructed during a patriotic spell by future queues of impatient clients and oil traders, but without the appropriate technical- economic basis, demands considerable sums for its operation. Therefore our country is extremely interested in finding a fitting place for the oil pipeline in the world transport system of energy carriers. Thus, in December, the Prime Ministers of Ukraine Anatoly Kinakh and Poland Leszek Miller together with representatives of the European Commission, will most probably discuss the opportunity to extend the Odessa-Brody oil pipeline to Gdansk.
Talking about it, first Vice Premier of the Ukraine Oleh Dubyna has also stated that an offer was discussed on Tuesday with the coordinator of the INOGATE program Fauzi Bensars, a representative of the general board of directors for transport and power in the European Commission. According to Dubyna, Bensars will meet Miller in Poland to discuss the available operating time for the Odesa-Brody project. The first vice premier also stated that the European Union is now actively considering attractions in the Odesa-Brody corridor in the Caspian region. Positive shifts in this direction have led to the decision accepted in Azerbaijan on the participation of Baku in filling the constructed oil pipeline.
A strange coincidence occurred recently with the Polish media almost unanimously supporting Odesa-Brody and further to Gdansk, opening a discussion about the expedience of Poland’s participation in this project. Thus it is impossible to rule out that such a move has not been made without stimulation from abroad on the part of obvious competitors. They have also made attempts to acquire Polish oil refining factories, that in itself have questioned the further development of a Eurasian oil transport corridor. Now in the pipe they have tried to hurl one more stone directed in order finally to plug it up. The VI International exhibition, Oil and Gas 2002, opened at the beginning of last week in Kyiv (We note that in the ceremonies, Prime Minister Anatoly Kinakh, chairman of board of Naftohaz Ukraine Yury Boiko, Minister for Fuel and Power Vitaly Haiduk, Ambassadors from the USA Carlos Pascuale and the Russian Federation Viktor Chernomyrdin have taken part). The Russian UKOS oil company in an attractive way declared its interest in the transport of oil in this pipeline. The senior vice president of UKOS Mikhail Yelfimov considers that our pipe can be loaded faster if it is used by handling oil in reverse (the opposite —Author) order from Brody to Odesa. The use of the Ukrainian oil pipeline will interest Russian UKOS Oil Company said its CEO. He noted that a Bosporus channel, through which the Russian oil will be transported further, pumping it through the Ukrainian oil pipeline, is capable of letting through an extra 4-5 million tons of petroleum per year. Otherwise the Odesa-Brody oil pipeline could remain empty for the next three years, believes Mr. Yelfimov. Earlier interest in pumping oil from Brody to Odesa was expressed by one more Russian petroleum company, LUKOIL. According to its president Vagit Alekperov, the company does not see any economic feasibility in transporting oil from Odesa to Brody, as far as not testing the problem with Black Sea oil rigs in Russia and Georgia, as well as with the transport in the Bosporus channel.
As the Ukrtransnaft press center told The Day, at the company concerning an opportunity offered to Russians of the reverse opinion and it will not change. Representatives of UKOS speak about additional opportunities of the Bosporus in the volume of 4-5 million tons. “But even at the initial stage of work on an oil pipeline” head of the press center Kyrylo Horoshylo stated, “we are guided by a minimum of 9 million tons.” Therefore Ukrtransnaft experts, even carrying out research in the summer on this occasion, came to the conclusion that a reverse in such conditions is not worthwhile, explained Horoshylo. He further added, that in connection with the expert’s conclusions, the reverse is not now a subject of negotiations with UKOS, or with LUKOIL. Vice President Mykhailo Honchar considers that the offer of the Russian companies is erroneous on the economic plane and arises from a misunderstanding of the various conditions by them in the European oil market. “It is propaganda rhetoric behind which is nothing concrete,” the expert asserts. The Russian companies, according to Mr. Honchar, consider the central region and East Europe as a place where the traditional dominate their Urals oil mix and are paniced that Caspian oil will easily get there.
