BAKU.06.10.2003.MEDIA-PRESS: In the end of the past week the Ukrainian company "Ukrtransneft" accepted the offer of the Russian-British TNK-BP (the Tyumen Oil Company) on filling the oil pipeline "Odessa-Brodi" by the Russian technological oil. Really the point is that the filling of only one piece of the pipeline by the technological oil - Avgustovka - Brody. As RIA "Novosty" has been informed in "Ukrtransneft", the observer council of the company supported this decision after consideration of answers given by a number of companies.
Literally two days before the President of the company "TOC-Ukraine" Mr. Alexander Gorodetskiy warned simply that the TNK-BP is able to take back its offer on deliveries of 450 thou tons of the technological oil in conditions of three year credit for filling the Ukrainian oil pipeline "Odessa-Brody" if "Ukrtransneft" will not accept the final decision up to October 8.
We shall remind that in the beginning of September "Ukrtransneft" appealed to the state organs and companies of Azerbaijan, Kazakhstan, Russia and Uzbekistan with offer to take part in the filling up the oil pipeline "Odessa-Brody" by the technological oil. The point is delivering 380 - 420 thou tons of oil to prevent the pipeline corrosion in the autumn - winter period. They noted in the press-service of "Ukrtransneft" that filling the oil pipeline by the technological oil will allow to begin immediately its operation "after the Government will determine oil transportation direction by this oil pipeline".
There was an appeal to the state institutions and companies on providing information on possibility and direction of using the gas pipeline in a case of its filling up by the technological oil in this letter and determining the oil mark as well. The Ukrainian side expressed its intension on purchasing the technological oil in conditions of three-year delay and the first payment in a year after the crude oil delivery.
Commenting this document, the Chief of the Administration of the Special Envoy of Ukraine on questions of the EuroAsian oil transport corridor Mr. Mikhail Gonchar has declared that the corrosion does not threat to the oil pipeline "Odessa - Brody" as its has been filled up by the conservant". By his words, no more than 500 thou tons of "light" Caspian oil would be necessary for filling up the pipeline. This oil volume, by the words of Mr. Gonchar will be deliveried to Odessa by the large companies, operating in the Caspian region in accordance with achieved earlier agreements. So there is not a need of appeal to Azerbaijan, Kazakhstan, Russia and Uzbekistan with a request of ensuring the oil deliveries, he has said and noted that similar statements are and effort of "pulling an idea of reverse operation of the oil pipeline through the back way".
The Ambassadors of the USA and Germany in Ukraine Mr. Karlos Paskual and Ditmar Shtyudemann also opposed to the using the pipeline as the acceptance of the Russian offer by Ukraine will mean a refusal of oil transportation in the European direction.
Nevertheless, we see that "Ukrtransneft" accepted the offer of the TNK-BP. There is hidden intrigue in the formed situation. The point is that the determination of the oil pumping direction either from Odessa to Brody or back will depend on the decision of the question, who will fill up the piece Avgustovka - Brody of the pipeline. And the mentioned intrigue lies in that the offer of the TNK-BP supposes the renting the piece of the oil pipeline by the company for a term of 20 years and, by confirmation of the newspaper "Commersant" and bases on that the major part of the pipeline will not operate.
For the present the Administration of Ukraine thinks about. As the first Deputy Minister of Foreign Affairs of Ukraine on the European Integration Issues Mr. Alexander Chaliy has informed that the Government will determine the pipeline "Odessa - Brody" operation direction in the end of November - beginning of December of 2003. The tender on selection of the company-estimator of the reverse using the oil pipeline "Odessa - Brodi" will be completed on October 13, 2003.
The decisions on oil pumping directions by the oil pipeline "Odessa - Brody" should be economically grounded, the President of Ukraine Mr. Leonid Kuchma has declared at the press-conference in Kiev.
"The Government of Ukraine should to take an economical decision in the first turn, but not the political one", - Mr. Kuchma has emphasized. He has noted that he will not support any oil pumping direction, however he calls to "money counting".
Analyzing the using of the oil pipeline "Odessa-Brody" for the Caspian deliveries from the terminal in Odessa up to the frontier with Poland, Mr. L. Kuchma appealed to the Government: "Has any company operating in the Central Asia or the Caspian shelf expressed its intension on oil deliveries? And where is the purchaser of this oil in Europe?" "And who will guarantee the filling up of this pipeline by $100 MM?", - the President of Ukraine has supplemented.
Mr. L. Kuchma should be able to ask else one question, however, rather rthetorical one - "What did think at all those about, who promoted then the idea of this pipeline construction?" But the formed situation is the economical nonsense. The pipeline, construction of which has cost hundreds million dollars, has not operated since 2001 by cause, which is not even banal - its creators did not take some trouble not only for pumping by the pipeline, but finding out crude oil for the technological filling up the pipe. For the last years there were a lot of declarations made by the Ukrainian officials on that the Caspian oil will be transported by the pipeline "Odessa - Brody" to Europe. The officials from Baku and Astana answered them at approximate frequency: "Dear gentlemen, we have no spare oil. Let's five - ten yeas will pass, and then we will consider this problem; however now, don't make answer".
However, several days ago, the Management of "Ukrtransneft" received the letter from the Kazakhstan National Oil and Gas company "Kazamunaygaz", which reported that "Kazmunaygaz" jointly with the other interested producing companies of Kazakhstan "is ready for consideration of the putting into operation of the pipeline in direction Odessa - Brody for transportation of the qualitative Kazakh oil to the markets of Ukraine and Europe.
Now there is the time to remember the goals of laying the oil route Odessa - Brody. Ukraine completed the construction of the pipeline with a length 674 km and capacity 9 - 14.5 MM tons per a year in 2001. It is expected that its capacity will be increased up to 40 - 45 MM per a year. Initially the pipeline was oriented for oil deliveries to Europe from the Caspian region. For this the crude oil should be pumped by the pipeline of the Caspian Pipeline Consortium (CPC) from the Kazakhstan field Tengiz up to Novorossiysk or the pipeline Baku - Supsa and further the tankers will deliver it by the Black Sea to the built already terminal in Odessa. It is planned that in 2005 Poland will start the construction of the pipeline up to Plotsk. From there the oil will be delivered to the terminal in Gdansk, where the pipeline has been constructed already or transported to Europe by already existing oil pipelines. The cost of the construction of the Polish branch by capacity of 44 - 45 MM tons will make $464.4 MM. However, its construction may start, we will repeat: only start, not earlier than in 2005. That means, else several years will pass up to the completion of its construction.
The idea of using Odessa - Brody pipeline in the reverse version has appeared on these grounds, i.e. that means oil pumping in the direction opposite to the planned one - from the main oil pipeline "Drujba" up to the terminal in Odessa and the next transportation by tankers up to the point of destination. A number of the Russian companies are interested in this, particularly the Russian-British Company TNK.
At the same time Ukraine considers several projects of the contracts on transit of 9 MM tons of the Caspian Oil per a year, the President of the State Company "Ukrtransneft" Mr. Alexander Todiychuk has informed. By his words, officials of eight companies in Ukraine, Czech Republic and Poland already has expressed their interests in the purchasing oil in volumes of 5 - 6 MM tons. However, the contracts have not signed already, Mr. Todiychuk has determined.
We shall supplement ourselves - as well the contracts on purchasing the Caspian oil for the non-operating pipeline.

GAS, WHICH WILL BE EXPORTED TO TURKEY FROM AZERBAIJAN WILL COST $70 - 120 PER A THOUSAND CUBIC METERS