Baku says Azerbaijan has enough oil for Odessa–Brodi–Plotsk pipeline
By M. Alkhazashvili
(Translated by Diana Dundua)
(Translated by Diana Dundua)
Tuesday, December 11
Azerbaijani President Ilham Aliyev recently stated that Azerbaijan would have enough oil reserves to fill the planned Odessa–Brody–Plotsk pipeline project to full capacity.
Representatives of Azerbaijan’s state oil company, SOCAR, confirm that Baku can fill the pipeline, however, they are currently in negotiations with Kazakhstani oil companies to secure an additional supply for the route.
Analysts have questioned the economic viability of pipeline projects in the region, citing not enough proven reserves to make some projects worthwhile.
Currently, the Odessa–Brody pipeline runs north to south, bringing Russian oil to freighters in the Black Sea. A number of countries would like to reverse the flow and extend the pipeline, providing another route for Caspian region oil to reach Europe.
Azerbaijani analyst Chingiz Valiev says two key issues must be held in mind when considering the president’s statement. Firstly, the capacity of the pipeline is currently only seven million tons, but that figure is expected to increase eventually to 15 million.
Secondly, the timeframe must be considered: Azerbaijan does not have enough reserves to feed the pipeline for an extended period of time.
An Odessa–Brody–Plotsk pipeline—flowing south to north—is hoped to begin operating in 2011. The project was agreed on at the October 10 Vilnius energy summit, when the leaders of Georgia, Ukraine, Lithuania, Azerbaijan, and Poland commissioned a feasibility study on the project.
Representatives of Azerbaijan’s state oil company, SOCAR, confirm that Baku can fill the pipeline, however, they are currently in negotiations with Kazakhstani oil companies to secure an additional supply for the route.
Analysts have questioned the economic viability of pipeline projects in the region, citing not enough proven reserves to make some projects worthwhile.
Currently, the Odessa–Brody pipeline runs north to south, bringing Russian oil to freighters in the Black Sea. A number of countries would like to reverse the flow and extend the pipeline, providing another route for Caspian region oil to reach Europe.
Azerbaijani analyst Chingiz Valiev says two key issues must be held in mind when considering the president’s statement. Firstly, the capacity of the pipeline is currently only seven million tons, but that figure is expected to increase eventually to 15 million.
Secondly, the timeframe must be considered: Azerbaijan does not have enough reserves to feed the pipeline for an extended period of time.
An Odessa–Brody–Plotsk pipeline—flowing south to north—is hoped to begin operating in 2011. The project was agreed on at the October 10 Vilnius energy summit, when the leaders of Georgia, Ukraine, Lithuania, Azerbaijan, and Poland commissioned a feasibility study on the project.