OREANDA-NEWS. January 17, 2008. In the course of Russian President Vladimir Putin's visit to Bulgaria on January 17-18, Russia, Bulgaria and Greece, according to expectations, shall sign a trilateral agreement of establishment of the International Project Company (IPC) for construction of the Burgas-Alexandroupolis oil pipeline, the press service of Transneft reported.

“A considerable package of documents” is prepared for Mr. Putin’s visit to Bulgaria, Russian Minister for Foreign Affairs Sergey Lavrov reported during the President's meeting with the cabinet ministers, the head of Ministry of Foreign Affairs has emphasized the trilateral agreement at the same time.

Burgas-Alexandroupolis project pipeline construction related companies have informed about establishment of the IPC and signed the respective protocol during the meeting at JSC “AK “Transneft” in December 2007.

The Russian party is represented by “Transneft”, “Rosneft” and “Gazprom neft” in the IPC. The Russian “Burgas-Alexandroupolis” “Pipeline Consortium” Ltd. shall own 51%, Greek portion in amount of 24,5% shall be shared between consortium of Hellenic Petroleum and Thraki (23,5%) and the state government (1%); 24,5% in the overall project shall be owned by the Bulgarian project company “Burgas-Alexandroupolis” with Technoexportstroy and JSC "Bulgargaz" as its participants.

IPC shall become the owner of the oil pipeline according to the intergovernmental agreement signed between Russian Federation, Greece and Bulgaria on 15 March, 2007. In accordance with the arrangements Bulgarian and Greek governments shall assume the obligations to provide the favorable tax regime for IPC and the Russian party in its turn guarantees pipeline load. IPC shall be registered in the Netherlands. 285 kilometers long Burgas-Alexandroupolis pipeline as it was previously informed will stretch through Greek and Bulgarian territories and will allow to decrease the volume of oil transported by tankers through congested Bosporus and Dardanelles. The technical and economic feasibility study is planned to be developed in the shortest possible time after IPC establishment. Oil pipeline construction is planed to be commenced in 2008.