Greek Development Minister Christos Folias on Friday is expected to sign a Shareholders’ Agreement for the Burgas-Alexandroupolis oil pipeline project in Sofia, Bulgaria. The agreement was initially signed by the shareholders of the project in January 10, 2008 in Athens, while a protocol of the agreement was signed in December 18, 2007, in Moscow, as part of an official visit by the Greek Prime Minister Costas Karamanlis in Russia.

An Interstate Agreement was signed in March 15, 2007 in Athens between government ministers from Greece, Russia and Bulgaria, while the Greek Parliament ratified the contract in April 17, 2007.

The shareholders of the project are, Russia, owner of 51 pct, Bulgaria, owner of 24.5 pct and Greece, owner of 24.5 pct.

The international company will be based in Holland. The project will be funded with a project finance form, based on the guaranteed supply of oil. The oil pipeline will have an annual capacity of at least 35 million tons and will stretch at around 303 km. Burgas storage facilities will have a total capacity of around 500,000 cubic meters, while in Alexandroupolis, storage facilities will have a capacity of 700,000 cubic meters.

Greece and Bulgaria will invest around one billion euros, creating hundreds new jobs in both countries.

Source: Athens News Agency

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