Tarakanov: dissatisfied with the Bourgas-Alexandroupolis project has

The new Bulgarian government, which came to power this summer, said it is reconsidering its commitments in the joint energy projects with Russia. Then there were fears that Russian-Bulgarian-Greek pipe Burgas-Alexandroupolis pipeline will be built. Recent the December meeting of shareholders also brings more clarity to this issue. Plans and timetables for implementation of the Burgas-Alexandroupolis pipeline, whether it will be a competitor of the Samsun-Ceyhan project and the progress of negotiations with partners interview „RBK Daily“ gave the general director of Trans-Balkan Pipeline BV Alexander Tarakanov.
RBK Daily: Are you satisfied with the results of the Bulgarian-Russian intergovernmental commission, which was held in Sofia on 10-11 December?
Alexander Tarakanov / AT /: Yes.
RBK Daily: What this project does not suits Bulgaria?
AT: At this point in the media appear quite different views. There is an official position fixed in the protocol: the parties will contribute to the development of the project. We rely on it. Yes, dissatisfied with the project there. I think in any kind of project it is developing a similar scenario. I can not say that everything is going to Bulgaria and we would like, but dialogue with the leaders of the country is quite positive. We understand that the new government came to power and they need more time to study the issue of construction of the Burgas-Alexandroupolis pipeline.
RBK Daily: Judging by recent statements of the Bulgarian leaders, these devices do not allotment of shares in the project, receiving only dividends and that the pipeline for them is the only transport project …
AT: Burgas-Alexandroupolis pipeline is not a commercial project. It is implemented on the basis of intergovernmental agreements. This law was approved by the parliaments of all three countries. It sets out all rights and obligations of the parties. If someone has their proposals, there is the procedure for their consideration. In addition to Bulgaria will act transit agreement under which the country will receive money from the early days of transportation. Now, seven or eight Bulgarian companies involved in the project, when construction started, the money will be spent well in Bulgaria / 155 km of the route will pass through Bulgarian territory. After completion of the project will need to service the pipe, and that means creating additional jobs in the country. As regards the discussion whether the pipeline Sofia will become the infrastructure or oil will depend on the Bulgarians themselves. If you have any suggestions for modification of the Bourgas-Alexandroupolis project, let’s send in the relevant application instances.
RBK Daily: the Greek partner is there any difference in the project?
AT: About Alexandroupolis this is a new and sufficiently large and serious project. Naturally, there is a certain group of people who are negatively related to net, but we fixed them for show and tell project. With local authorities have a mutual understanding and I think they do a very productive work.
RBK Daily: Bulgaria wants to make the environmental expertise of the project?
AT: Do not they want to make environmental expertise, and we are obliged to hold by law. This was in the center of attention at the outset of the project. In addition to the technical documents we now prepare the entire set of documents for environmental expertise. Notices to their ratification in the ministry of environment and water resources in Bulgaria as well as Greek in the relevant department was submitted in March. Around March or April next year we will have already served their full set of documents.
RBK Daily: How long will it take to their stages?
AT: By law, it takes four to six months. If we start from the submission of the ratification and result in a mere permission, then gets about a year and a half.
RBK Daily: When will be ready for the technical and economic justification of the project?
AT: The technical and economic justification of the project was audited in Bulgaria, Greece and Russia. We have handed all the technical part, all so-called five packages. In January, will proceed to discuss the final versions of these documents. We plan to approve at the end of March, the technical and economic justification of the project.
RBK Daily: What are the deadlines for construction of the pipeline?
AT: We planned to start construction in late 2010, mainly it concerns the purchase of equipment, which was necessary for longer production. Now, to be paid more attention to the ecology of the project, there is no slippage and extension of the project. In this regard, the early shift for construction early in 2011 from 18 to 24 months construction will take this period will depend on the timing of the work with partners in the coming year. Moreover, we can proceed with the implementation of several activities, mainly related to the land, regardless of other documents.
RBK Daily: What would be the price of the Bourgas-Alexandroupolis project?
AT: We already have an indicative figure, but as it still is not to end discussion, I would like to announce at this time. Give us a month. There’s nothing surprising there. Only that they would have to spend more on marine part, in this context that we again solve environmental issues in the Region, and in Alexandroupolis. Will build the pipe as far as possible away from the coast, and these are significant costs.
RBK Daily: What would be the arrangements for financing the project?
AT: There is a basic principle, which is fixed in the intergovernmental agreements – that is funding the project.
The second principle – the market rates. Now go to the shareholders, so a discussion of how to reconcile these two principles.
RBK Daily: Are there any guarantees to fill the pipe?
AT: Right now we are discussing this issue with Russian shareholders in the project: Transneft, Rosneft and Gazprom oil „. Furthermore, it is known that Kazakhstan has expressed interest in oil supplies when the signatory to expand the CPC. The issue is not easy and is on the agenda of the shareholders.
RBK Daily: How will initiate tariff for transporting oil by pipes?
AT: In accordance with the intergovernmental agreement will be the rate established by the Company in consultation with all shareholders. This has two components, of which we must take into account. First, the tariff should be marketing. And second, it must depend on our costs and operating and capital. Naturally, in this view is now very difficult to compete with the Straits. However, these are natural waterways, and the Burgas-Alexandroupolis – art, plus two the loading and unloading activities. But oil companies need a stable and lasting employment figures.
RBK Daily: In your opinion, the Turkish Samsun-Ceyhan project there is a competitor of the Burgas-Alexandroupolis oil pipeline?
AT: And this is worse? In this region there is currently only one route – through the Bosporus and Dardanelles straits, because of which oil companies have problems. For example, from 18 to 29 November straits are closed because of fog, and this situation happens every year. Therefore, the occurrence of one or two routes will only increase competition in the region. Moreover, Russia has signed a memorandum of understanding for the Samsun-Ceyhan pipeline and the issue of him just being explored. In this project Burgas-Alexandroupolis is a final decision and prepare the required package of documents.