 RUSSIA IN FACTS |
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18 December 2003 00:38
OMV, Transpetrol sign pipeline deal
BRATISLAVA. Dec 18 (Interfax) - Austria's OMV and Slovakia's Transpetrol, which is 49% owned by
Russia's Yukos, signed an agreement to create a joint venture for the construction and operation of a new crude oil
pipeline between Bratislava and OMV's Schwechat refinery in Austria at an estimated cost of 28 million euros.
The companies said in a press release that construction of the 60- km pipeline, which will have a total capacity of
around 3.6 million tonnes per year, will begin before the end of 2004.
In addition, a 10-year supply contract for 2 million tonnes of crude oil per year was signed.
Gerhard Roiss, OMV's deputy CEO responsible for refining and marketing, emphasized the strategic importance of
this project for the group: "Thanks to this contract, we will be able to directly supply our Schwechat refinery
with Russian oil, in addition to the Adria-Vienna pipeline. This supply diversification will also generate cost benefits
with respect to both products and logistics."
Deliveries will begin by January 2006, with annual volumes of about 20% of the capacity of the Schwechat refinery.
Through construction of additional pumping stations, the capacity of the pipeline can be increased to 5 million metric
tons per year. Prices for the crude oil will be in line with existing oil supply contracts between Yukos and refineries
in the region.
Yukos and OMV signed a memorandum of understanding regarding the construction of the new pipeline and respective
crude oil deliveries under a long-term agreement in August. [SL EUROPE EEU EMRG AT RU ENR ENQ CRU TRD] pr <>
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