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Chevron Willing to Link Burgas-Alexandroupolis with Caspian Pipeline
Private shareholders of Caspian Pipeline Consortium on Thursday declared interest in a stake the Burgas-Alexandroupolis pipeline, contrary to an earlier statement of the company’s executives. Chevron and Kazmunaigaz are going to link the participation in the project with Russia’s plan to increase the capacity of Caspian Pipeline Consortium. Chervon is reputed to have endorsed federal authorities’ memorandum on the expansion apart from a demand to clear the consortium’s $5.7 billion debts immediately.
Ahead of the signing of a deal to build the Burgas-Alexandroupolis pipeline, Caspian Pipeline Consortium released an official statement saying the company has no business interest in the project and its shareholders do not plan to negotiate acquiring a stake in it. Contrary to these statements, Chevron’s Moscow office “welcomed” the deal while Kazakhstan-based Kazmunaigaz told the Interfax news agency it is considering buying a share in the pipeline.
Caspian Pipeline Consortium is the owner of the only private pipeline in Russia which runs from Kazakhstan to Novorossiysk in Russia’s south. Russia owns 24 percent in the company, Kazakhstan – 19 percent and Oman – 7 percent. Chevron holds 15 percent, a joint venture of LUKOIL and BP – 12.5 percent while Rosneft and Shell’s joint venture holds 7.5 percent.
Chevron, a key private shareholder in Caspian Pipeline Consortium, is determined to link its possible participation in the Burgas-Alexandroupolis project with plans to expand the Caspian pipeline’s capacity. Russian authorities came up with a project to increase the pumping volume in the pipeline from an annual 27 million tons to 65 million tons.
The Federal Property Management Agency suggests financing the expansion by loans rather than by shareholders’ own funds.
Chevron is close to agree to the terms of Russian officials, Kommersant sources report. Chevron and the Kazakh government approve of the plan apart from an article which demands that Caspian Consortium clear its $5.7 billion debt immediately, according to a letter from Chevron Vice-President George Kirkland to Russian Prime Minister Mikhail Fradkov. Mr. Kirlkland also declared willingness to discuss business terms for participation in the Burgas-Alexandroupolis project.
www.kommersant.com
All the Article in Russian as of Mar. 16, 2007
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