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OMV, Transpetrol to construct Slovakia-Austria oil pipeline

By OGJ editors

HOUSTON, Dec. 23 -- Austria's OMV AG and Slovakian state pipeline company Transpetrol, now 49% owned by Yukos Oil Co., signed an agreement Monday to jointly construct and operate a 60 km crude oil pipeline from the 115,000-b/d Bratislava refinery in Slovakia to OMV's 180,000-b/d Schwechat refinery near Vienna, currently supplied via pipeline from Italy.

The proposed $30-million pipeline will have an initial capacity of 72,000 b/d, potentially rising to 100,000 b/d with installation of additional pumping stations. Pipeline construction is slated to begin by yearend 2004.

In a related contract, Yukos pledged to supply OMV's refinery with as much as 100,000 b/d of Urals crude for an initial period of 10 years, starting with 40,000 b/d in January 2006 (OGJ, Oct. 6, 2003, p. 62). Crude oil prices will be in line with existing oil supply contracts between Yukos and other area refineries, the companies said in a joint news release.

"Thanks to this contract, we will be able to directly supply our Schwechat refinery with Russian oil in addition to the Adria-Vienna Pipeline," said Gerhard Roiss, OMV deputy CEO responsible for refining and marketing. "This supply diversification will also generate cost benefits with respect to both products and logistics."

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