June 25, 2008

Feasibility Study for Burgas-Alexandroupoli Oil Pipeline to Be Ready By End of 2008

MOSCOW. June 25 (Interfax) - An updated feasibility study of the project for the construction of the Burgas-Alexandroupoli oil pipeline will be ready by late 2008 - early 2009, Project Manager Nikolai Seregin of Gazprom Neft (RTS: SIBN) told journalists.

Work in updating the feasibility study will begin in the near future, he said. The feasibility study, which was prepared by ILF a few years ago, needs updating because of changes in the prices of metal and pipelines and a number of other factors. In particular, several changes will have to be made in the oil pipeline route, said the Gazprom Neft official.

The Balkan oil pipeline is an oil transport system that is 285 kilometers long, with initial production capacity of up to 35 million tonnes a year (with a possibility to increase capacity up to 50 million tonnes), and it is designed to bypass the Bosphorous Strait. It will extend from the Bulgarian port of Burgas in the Black Sea to the Greek town of Alexandroupoli in the Mediterranean Sea.

Former Russian Industry and Energy Minister Viktor Khristenko stated earlier that the feasibility study for the Burgas- Alexandroupoli oil pipeline project would be approved in 2008 and that construction would begin in 2009.

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