Greek Development Minister Dimitris Sioufas confirmed on Wednesday that there will be delays in the signing of the final agreement for the construction of the Burgas-Alexandroupolis oil pipeline
“There are some different approaches on the matter between Russia and Bulgaria and the two governments should work together for their settlement,” Sioufas said.
The construction of the 280-kilometer pipeline was scheduled to be signed before the end of the year. The pipeline will carry Russian oil through Bulgaria and Greece avoiding its transit through Bosporhus busy straits.
This conclusion was reached after the meeting of the three countries’ delegations in Moscow on Dec 13 and in Sofia Dec 19.
However, Mr Sioufas remains optimistic that the differences will be resolved and the signing will take place soon.
Commentators say that the most intractable issue for the agreement to go through is who will control the management of the pipeline and for how long.
The issue is getting more complicated as Bulgaria which will hold a 24.5% stake in the pipeline might move and sell it, or part of it, to foreign companies and has held initial talks with Kazakhstan oil company KazMunaiGas and U.S. Chervon, as the country’s Energy Minister Asen Gagauzov admitted earlier in December.
Russia will be the majority shareholder with a 51% stake and Greece will control the remainder.