Company news in July 2004 | |||
Ukrtransnafta to Address the Issue of Filling the Odessa/Brody Oil Pipeline with TNK-BP''s Crude Oil on July 8
The Supervisory Board of Ukrtransnafta OJSC is going to review a set of documents pertaining to the start of the Odessa/ Brody oil pipeline operation and to its filling with technological crude oil which TNK-BP proposed to supply on Thursday. As an informed source reported, in particular, an agreement with TNK-BP for supply of 400,000-450,000 tons of technological crude oil; a facility agreement used to purchase this oil; a purchased oil pledge agreement; and an agreement for assignment of rights under a bank account will be considered. Acceptance by Ukrtransnafta of TNK-BP''s proposal as to supplying technological crude oil on credit will prepare for the start of Russian crude oil supplies through the Odessa/Brody oil pipeline in reverse mode. The credit facility worth of some $ 108 million will be accommodated for 3 years at 8% p.a. To secure performance of Ukrtransnafta''s obligations to repay the principal and to pay interest, the plan is to enter into a purchase oil pledge agreement and an agreement for assignment of rights under the bank account. As reported earlier, last September TNK-BP expressed willingness to supply 380,000-420,000 tons of technological crude oil of the Urals grade as a three-year commercial credit in order to fill the Odessa/Brody oil pipeline and also to provide 9 million tons of crude oil for pumping annually. However, the Ukrainian Government resolved on February 4, 2004, to use the Odessa/Brody pipeline in direct direction. This week, the Government refused to use the Odessa/Brody pipeline in the direct direction only, making amendments into the February resolution.
Source: INTERFAX