Kazakhstan to Acquire Stake in Burgas-Alexandroupolis Project

At a summit in St. Petersburg, Russia Friday, Kazakhstan will hold negotiations with Greece and Bulgaria to acquire a share in the Burgas-Alexandroupolis Oil Pipeline Project, which would carry from 35 million to 50 million tons of oil a year to European and US markets.

The pipeline will have a total length of 280 km, with 155 km running across Bulgaria. The construction works will last 18 months and the cost of the project will be close to EUR 800 million. The route would go from Burgas on Bulgaria's Black Sea coast to the Greek port of Alexandroupolis, providing an outlet to the Mediterranean, therefore avoiding the busy Bosporus Strait.

"Kazakhstan would be holding talks with Greece and Bulgaria on the purchase of part of the 49% share package owned by the two countries on June 8, during a summit in St. Petersburg, Russia," said Nurlan Nogayev the Head of the Oil Industry Department of the Ministry of Energy of Kazakhstan. The size of the stake Kazakhstan intends to acquire will be also discussed during the St. Petersburg summit. As of today, Russia owns a 51% share package while Bulgaria and Greece each own 24.5%.

Besides the KazMunaiGaz National Oil Company of Kazakhstan, TNK-BP and Chevron are interested in obtaining shares in the Burgas-Alexandropolis Oil Pipeline Project.