5 Million Tons of Oil Have Been Transported Along the Brody–Odessa Route
19 Sep 2005
On September 2005, on the first anniversary of reversed use of the Odessa–Brody pipeline, the five millionth ton of oil was loaded on the HS TÓ SCA tanker in the Yuzhnyi Port. Payments to Ukraine for oil transportation along this route exceeded $63 million, including the Ukrtransnaft tariffs and the Yuzhnyj Port duties and service fees.
“The figures tell the whole story,” says Alexander Grabovsky, Vice President of TNK-BP Ukraine. “We are consistently building up the use of the Brody–Odessa direction and are planning to pump over 600,000 tons of oil in September. In less than a year of industrial reverse use of this pipeline, Ukraine gained more than $63 million, of which the first $50 million was earned in the first eight months of 2005. TNK-BP, the operator of this route, does its best to boost up the efficiency of this route and attract a maximum possible number of Russian oil companies to this pipeline.” According to Mr. Grabovsky, more than 30 Russian oil-producing companies transported their oil along this transportation route. The largest amounts of oil were transported by TNK, Surgutneftegaz, LUKOIL, Sibneft, Rosneft, Tatneft, Yuganskneftegaz, YUKOS, Slavneft, and Sredne-Vasyuganskoe.
“Now that oil processing at Russian refineries and export of oil products are more appealing and lucrative than crude oil export, the volume of oil transit through the TransNeft system of pipelines are falling down. Nevertheless, despite the expected decline of oil transit via Ukraine in other directions, oil export along the Brody-Odessa route grows every month. By the end of the year, approximately 6 million tons of Russian oil of the Urals brand will be pumped in this direction. Thus, the transit volume from the launch of the reverse route will exceed 7 million tons,” informed Alexander Grabovsky.
For reference
The contract for oil transportation through the Odessa–Brody oil pipeline to the Pivdennyi Oil Export Terminal (the Yuzhnyi Port) was signed on July 8, 2004. The contract implies annual transportation of 9 million tons of Russian oil of the Urals brand along the route 32nd km of the Ukrainian State Boundary–Brody–Yuzhnyi. Ukrtransnafta took a $108 million credit from the Russian-British oil company TNK-BP for purchasing more than 400,000 tons of process oil and launching the oil pipeline. The average price of process oil was about $270 per ton. On September 11, 2004, Ukrtransnafta completed the filling of the route with oil. The first tanker was loaded on September 29, 2004 at the Pivdennyi Oil Export Terminal. 1.05 million tons of Russian oil was pumped through the pipeline in Q4 2004.
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