PriceWaterhouseCoopers
The "Odessa-Brody" project is advantageous, everyone is gaining here.
Basic theses of the concept of the project's business plan.
During September-November 2002 "Ukrtransnafta" was holding an open international competition to nominate a company organizing the development of EAOTC (Project developer). Famous experts form Ukraine, USA, Raiffeisenbank (Austria) has participated as consultants carrying out the competition. The qualification committee has defined the suggestions of the "PriceWaterhouseCoopers" company as the best. All the participants of the competition have emphasized the high professional level of selections impartiality and transparency.
"PriceWaterhouseCoopers" is one of the world's largest companies rendering professional consulting services. 125 thousand specialists of different fields are engaged at the company, and are working in 142 countries. The practice of "PriceWaterhouseCoopers" in business evaluation and strategy development is based on advices of specialists concerning operational and investment decision making, estimation of views, strategic analyses of market, survey of investment portfolios and also issues of competition and regulations. The specialists are also consulting the companies about how to estimate the business, to increase the value and effectively deploy resources. "PriceWaterhouseCoopers" is working with customers in the field of estimation of business and strategy development in order to carry out comprehensive analyses of their business, goods, services, markets and consumers. Companies disposing such analyses can plan their strategy more accurately.
According to the conditions of contract the process of development of "Odessa-Brody" project is divided into two stages:
the first stage is completed in May 2003. It envisaged the development of the concept of the business-plan considering different possible variants of its realization. the second stage which is being realized includes preparation of information memorandum, development of commercial conditions and attraction of investors, creditors, suppliers and processors of oil, oil dealers and financial institutions and also holding negotiations about commercial conditions of their participations in the project and conclusion of corresponding agreements and contracts. The term of its realization is the end of the current year.
The major aspects of the concept of the business plan developed jointly with "PriceWaterhouseCoopers" company.
Four major principles were considered while developing the business plan:
The concept of the business plan was developed on the basis of market exploration and confirms the possibility of gaining economical effect from usage of the project already at the first stage of its realization. "PriceWaterhouseCoopers" while developing the business plan has applied three-stage approach to the exploration of commercialization and development of "Odessa-Brody" oil transportation system which is more effective. The first stage envisages direct access to oil processing factories, that does not require construction of new oil pipelines: Kralupy (Czech), Vogburg, Ingolstadt (Germany). The expected amount of transportation through Odessa-Brody oil pipeline is 7 million tones per year. The amounts are making up less than half of current total consumption of low-sulfur oil by these three oil refinery. Only Kralupy oil refinery processes 3 million low sulfur oil per year. The expected amount of transportation is 3 million tones per year. Vogburg oil refinery processes 11.3 million tones of oil per year. 8 million tones of them are light low-sulfur oil. Expected amounts of transportation is 3 million tones per year. Ingolstadt a(including volumes of the first stage) are making up 15.4 million tones per year. The amounts of oil proposed to be transported to theses two factories are making up 40% of their total consumption of low-sulfur oil. Karlsruhe oil refinery processes 14.5 million tones of oil per year. 7 million tones of them are light low-sulfur oil. Expected volume of transportation is 2 million tones per year. Shvehat oil refinery processes 8 million tones of oil per year. 3.5 million tones of them are light low-sulfur oil. Expected volume of transportation is 2 million tones per year. The third stage envisages construction of new oil pipeline form Brodov to Plock and from Shvedt to Wilhelmshafen. Expected volumes of transportation through Odessa-Brody pipeline in this direction will make up 8 million tones of oil per year, and 19 million tones including volumes of first and second stages. The volumes of oil proposed for transportation within the frames of third stage makes up 21% of volumes of consumption of low-sulfur oil of oil refinery connected to Wilhelmshafen terminal. "PriceWaterhouseCoopers" also provides consideration of variants of construction of new connecting pipelines, which will provide economical filling of Odessa-Brody or continuation of system for access to other markets. Stage-by-stage access applied by "PriceWaterhouseCoopers" enables increase of investments attraction and business image of the Ukraine at all stages of the project development and commercialization of Odessa-Brody system. Realization of this access enables saving the strategic advantage of the Odessa-Brody project as an only existing route for oil transportation detouring Bosphor straight, which offers the most advantageous way of delivery of hydrocarbon row material to European oil refinery.market demand; demand in providing trust; necessity of creation of safe situation; provision of political support, specifically from EU.
Opinions of experts about the reverse of the Odessa-Brody oil pipeline.
Albrecht von Blumenkron, Manager of the "PriceWaterhouseCoopers" company. "We do not consider the reverse at all. The project was developed for transportation of Caspian oil to Europe. Even from geographical point of view the reverse does not cover expenses. The Odessa-Brody pipeline is crucially necessary for Europe. It could fill the gap occurred due to decrease of oil supply from North Sea. Only definite political ring negotiate the possibility of reverse. Industrialists are understanding the advantage of the Odessa-Brody direction. The Caspian oil, which is by its composition is similar to one form North Sea common for Europeans will gain much compared with heavy oil from Russia".
Fauzi Bensarsa - representative of the Directorate of the European Commission on the issues of transport and energy. I want to be frank with you. We at the European Commission do not play political games with oil pipelines and tanker transportation of oil by sea, as we deal very seriously with the issue of safety of energy supply. We have acknowledged the Odessa-Brody-Plock oil pipeline very important for the safety of energy supply through all Europe.