"Bourgas-Alexandroupolis Pipeline" three-party agreement signed in Athens

Representatives of energy companies from Greece, Bulgaria and Russia signed in Athens a three-party agreement for the establishment of an international company for the construction of the oil-pipeline Bourgas-Alexandroupolis.

The establishing agreement will probably be signed in Sofia on January 17 during the visit of the Russan President Vladimir Putin to Bulgaria.

The agreement signed on January 10 in Athens, was signed by the deputy chief of Russian Transneft, Vladimir Nemtsev, as representative of the Russian "Truboprovoden Consortium Bourgas-Alexandroupolis", managing director of Bulgargaz, Lyubomir Danchev, member of the BoD of Greek HELPE-THRAKI S.A., Theodoros Vardas and the Greek Minister of Development Mr. Christos Folias.

According to an agreement signed between Greece, Bulgaria and Russia on March 15 2007, the owner of the Bourgas-Alexandroupolis oil-pipeline would be the new International Project Company (IPC) "Transbalkan Oil Pipeline".

In December 2007, a protocol was signed in which the three parties agreed that this company would also construct the pipeline. The new company would be registered in the Netherlands.

Russian "Truboprovoden Consortium Bourgas-Alexandroupolis" would own 51 per cent of the shares of the new company. The Bulgarian company Bourgas-Alexandroupolis BG would own 24.5 per cent of the shares in the new company. While the Greek share of 24.5 per cent would be split between the HELPE-THRAKI consortium(Hellenic Petroleum, Latsis Group, Copelouzos Group), which would own 23.5 per cent, and the Greek State, holding the remaining 1 per cent.

The project was estimated to be worth $1.2 billion. Construction was expected to start in 2008, with the pipeline going into production in 2009.