by Andrey Kolesnikov
By opening an new oil pipeline between Greece and Bulgaria
Russian President Vladimir Putin signed an agreement yesterday in Athens with the prime minister of Greece and Bulgaria on the construction of the Burgas-Alexandroupolis oil pipeline. The Greek prime minister characterized the event as the appearance of new countries, Greece and Bulgaria, in the energy map of the world. Kommersant special correspondent Andrey Kolesnikov thought that it was too early still to call it a map – it's a rough draft.
Transneft president Semyon Vainshtok looked extremely satisfied after the signing of the trilateral agreement “On Cooperation in Equipping and Operating the Burgas-Alexandroupolis Oil Pipeline. But he was not very pleased to be asked by journalists how much the construction of the pipeline would cost.
“Well, let me tell you how it will happen first,” he answered. “The intergovernmental agreement gives us the right to receive specific parts of the project from Greece and Bulgaria. We will form an international company with them and register the main office…” He looked around. “Then we will allot funds for it,” he continued. “And the company will announce a tender for a feasibility study of the project. Then the feasibility study will be confirmed. Then a tender will be announced for a management company. It will determine the costs for the construction and installation work. And only then can you ask me what it will cost.”
“And how long will that take?” someone asked.
We will do everything to make the time as short as possible,” he answered good-naturedly.
“Well, one year, two years?” the Gudok correspondent asked.
“Much, much less!” Vainshtok exclaimed. “I will give you an example. Before Vladimir Putin took part personally and put the question rigorously in Athens on September 3 of last year to start the project…”
Apparently he considered that a full answer.
Unsurprisingly, he was asked again how much construction of the pipeline would cost. To his credit, he tried to answer again.
“Let's start again,” he said. “When we began building the Western Siberia – Pacific Ocean pipeline, we calculated and came upwith a number of $6.6 billion. At that time, a ton of pipe cost $300. Now it costs $1800. No matter what I tell you, I will obviously be wrong.”
“Do you know where the oil for the pipeline will comer from?” the AiF correspondent asked.
“Yes.”
“Tell us?”
“And what will you tell me?” His patience was clearly wearing thin. He didn't like being expected to tell everything he knows. “The oil will come from the Black Sea basin at first.”
“Are you sure the project will be implemented, even after the signing ceremony?” I asked.
“Name me one unsuccessful Transneft project!” he answered explosively. “Not even two. Just one! I don't even accept the idea! I don't even think that anything we enter into will be unsuccessful.”
After a little more dissatisfied banter, he took another question.
“Do you think that the Kazakh Kazmunaigaz could join the project? That say it is possible.”
“Of course it's possible,” he answered. “If the Bulgarians and Greeks sell them their shares. Chevron could join too, if they sell it a share… I bakery could buy a share.” The Greeks and Bulgarians each have a 24.5-percent share.
Vainshtok was asked again how much the pipeline would cost to build. He glared and didn't answer.
“They say $1 billion,” someone offered.
“Who told you that?” Vainshtok asked. He sounded tired then.
“I think it was [Deputy Prime Minister Sergey] Naryshkin.”
“Naryshkin? He's a smart person. He wouldn't say that.”
Vainshtok's problem was that, at the Monday meeting between the president and the members of the government, Minister of Industry and Energy Viktor Khristenko did name that figure.
Putin, Greek Prime Minister Konstantinos Karamanlis and Bulgarian Prime Minister Sergey Stanishev spoke about the project in ecstatic tones at their press conference.
A Greek journalist asked how all three countries would receive equal benefit from the pipeline, as Karamanlis had said.
“It's not a matter of how and how much we share,” the Greek PM answered. “The point is that Greece and Bulgaria are now on the world energy map!”
Putin said that there would opportunities for companies from other countries as well. “It will be an opportunity for all companies working, for example, in the Black Sea basin. American companies, Kazakh, Azeri companies…” He seemed to be breaking the bad news to himself.
“Alexandroupolis is a deep seaport,” the Russian president continued. “Tankers up to 300,000 tons can pass through. And pay attention to the fact that a 600,000-ton oil reservoir will be built in Alexandroupolis. We have a bigger one, almost a million, but it's in the northwest. Greece and Bulgaria are guaranteeing their economic stability… The owner will be an international consortium, but all of its actions will be subject to local legislation –Bulgarian on the territory of Bulgaria… Local tax authorities will supervise it…”
He began cheerleading.
Later, speaking about ecological safety, Putin said that the pipeline could be rerouted, if necessary. He personally rerouted the pipeline to the Pacific by 400 km.
“We are assuming that nothing can be excluded,” he said. That's what life has taught Vladimir Putin.
By opening an new oil pipeline between Greece and Bulgaria
Russian President Vladimir Putin signed an agreement yesterday in Athens with the prime minister of Greece and Bulgaria on the construction of the Burgas-Alexandroupolis oil pipeline. The Greek prime minister characterized the event as the appearance of new countries, Greece and Bulgaria, in the energy map of the world. Kommersant special correspondent Andrey Kolesnikov thought that it was too early still to call it a map – it's a rough draft.
Transneft president Semyon Vainshtok looked extremely satisfied after the signing of the trilateral agreement “On Cooperation in Equipping and Operating the Burgas-Alexandroupolis Oil Pipeline. But he was not very pleased to be asked by journalists how much the construction of the pipeline would cost.
“Well, let me tell you how it will happen first,” he answered. “The intergovernmental agreement gives us the right to receive specific parts of the project from Greece and Bulgaria. We will form an international company with them and register the main office…” He looked around. “Then we will allot funds for it,” he continued. “And the company will announce a tender for a feasibility study of the project. Then the feasibility study will be confirmed. Then a tender will be announced for a management company. It will determine the costs for the construction and installation work. And only then can you ask me what it will cost.”
“And how long will that take?” someone asked.
We will do everything to make the time as short as possible,” he answered good-naturedly.
“Well, one year, two years?” the Gudok correspondent asked.
“Much, much less!” Vainshtok exclaimed. “I will give you an example. Before Vladimir Putin took part personally and put the question rigorously in Athens on September 3 of last year to start the project…”
Apparently he considered that a full answer.
Unsurprisingly, he was asked again how much construction of the pipeline would cost. To his credit, he tried to answer again.
“Let's start again,” he said. “When we began building the Western Siberia – Pacific Ocean pipeline, we calculated and came upwith a number of $6.6 billion. At that time, a ton of pipe cost $300. Now it costs $1800. No matter what I tell you, I will obviously be wrong.”
“Do you know where the oil for the pipeline will comer from?” the AiF correspondent asked.
“Yes.”
“Tell us?”
“And what will you tell me?” His patience was clearly wearing thin. He didn't like being expected to tell everything he knows. “The oil will come from the Black Sea basin at first.”
“Are you sure the project will be implemented, even after the signing ceremony?” I asked.
“Name me one unsuccessful Transneft project!” he answered explosively. “Not even two. Just one! I don't even accept the idea! I don't even think that anything we enter into will be unsuccessful.”
After a little more dissatisfied banter, he took another question.
“Do you think that the Kazakh Kazmunaigaz could join the project? That say it is possible.”
“Of course it's possible,” he answered. “If the Bulgarians and Greeks sell them their shares. Chevron could join too, if they sell it a share… I bakery could buy a share.” The Greeks and Bulgarians each have a 24.5-percent share.
Vainshtok was asked again how much the pipeline would cost to build. He glared and didn't answer.
“They say $1 billion,” someone offered.
“Who told you that?” Vainshtok asked. He sounded tired then.
“I think it was [Deputy Prime Minister Sergey] Naryshkin.”
“Naryshkin? He's a smart person. He wouldn't say that.”
Vainshtok's problem was that, at the Monday meeting between the president and the members of the government, Minister of Industry and Energy Viktor Khristenko did name that figure.
Putin, Greek Prime Minister Konstantinos Karamanlis and Bulgarian Prime Minister Sergey Stanishev spoke about the project in ecstatic tones at their press conference.
A Greek journalist asked how all three countries would receive equal benefit from the pipeline, as Karamanlis had said.
“It's not a matter of how and how much we share,” the Greek PM answered. “The point is that Greece and Bulgaria are now on the world energy map!”
Putin said that there would opportunities for companies from other countries as well. “It will be an opportunity for all companies working, for example, in the Black Sea basin. American companies, Kazakh, Azeri companies…” He seemed to be breaking the bad news to himself.
“Alexandroupolis is a deep seaport,” the Russian president continued. “Tankers up to 300,000 tons can pass through. And pay attention to the fact that a 600,000-ton oil reservoir will be built in Alexandroupolis. We have a bigger one, almost a million, but it's in the northwest. Greece and Bulgaria are guaranteeing their economic stability… The owner will be an international consortium, but all of its actions will be subject to local legislation –Bulgarian on the territory of Bulgaria… Local tax authorities will supervise it…”
He began cheerleading.
“We are laying a line to the Pacific Ocean,” he reminded them. “I was in Athens last September, and we have traversed 700 km. since then – with no roads, ice… And here we only have 277 km., and we have been talking about it since 1994…”
Later, speaking about ecological safety, Putin said that the pipeline could be rerouted, if necessary. He personally rerouted the pipeline to the Pacific by 400 km.
“We are assuming that nothing can be excluded,” he said. That's what life has taught Vladimir Putin.
