Ukraine & Poland To Extend Odesa-Brody Pipeline To Plock In 2006

The decision to extend the pipeline to Poland is likely part of negotiations to change the current direction of oil flow through the pipeline. Presently, oil is shipped from Brody, in western Ukraine to Odesa, in the south. Ukraine, Poland, and the EU will allocate EUR 2 mn for financing feasibility studies of the pipeline extension to Plock. The EBRD and European Investment Bank have already expressed interest in participating in the project. Concorde Capital: With the new government at the helm, the direction of the Odesa?Brody pipeline is likely to be switched back to its original design. Shipping oil from Brody to Odesa has proven unprofitable. The losing party will be TNK-BP, which will face increased competition from Kazak oil extractors. Ukraine is to benefit from both higher budget revenues and closer ties with the EU. Also, a number of unnamed oil majors have agreed to use the Odesa-Brody pipeline, if the oil is shipped to Europe, according to government sources.