----- Original Message ----- 
From: Rick Rozoff <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Saturday, July 01, 2000 12:17 PM
Subject: [STOPNATO] NATO's Balkans Outposts: U.S.'s Gateway To The Caspian


STOP NATO: NO PASARAN! - HTTP://WWW.STOPNATO.COM

http://www.albaniannews.com
Albanian Daily News

July 1, 2000   
   
 
   
AMBO Corporation to Start Fund Raising Within Days


SOFIA - The New York-registered Albanian, Macedonian
and Bulgarian Oil Corporation (AMBO Corporation), set
up to construct a trans-Balkan oil pipeline linking
the Bulgarian Black Sea port of Bourgas with Albanias
Adriatic port of Vlora, will start raising funds as of
the beginning of July, the companys vice-president,
Gligor Taskovic, has announced.

Leading oil companies such as Mobil, BP Amoco, Agip,
Chevron and Texaco have already expressed interest in
the project, said AMBO president Ted Ferguson, who
went to Sofia at the end of May to meet government
representatives. In Fergusons opinion the pipeline
can be completed by the end of 2004 or in 2005.

The pipeline will be 900 kilometers long and have an
annual capacity of 35 million tons of oil. According
to estimates, the facility will cost about 1.130
billion dollars, 450 million dollars of which will be
raised from company shares and 600 million dollars
provided through bank credits.

Talks have already been held with the European Bank
for Reconstruction and Development (EBRD), the
International Financial Corporation (IFC), the
Overseas Private Investment Corporation (OPIC) and
EXIM, company sources said.

A Regional Development Ministry export council has
considered AMBOs preliminary survey in order to
become acquainted with the basic facts. The
corporation assigned its execution to four consulting
companies - the major one of which is Brown & Root.
The legal analysis was undertaken by CS First Boston,
while the political one, by Richard Armtrige.

At the time, regional development minister Evgeni
Chachev said that first a choice must be made between
this project and the alternative one of a pipeline
linking Bourgas with the Greek port of
Alexandropoulis. In Minister Chachevs opinion both
projects are important and it is up to the investors
to decide which will start first.

Recently, the Bourgas-Alexandropoulis project seems to
have been slightly forgotten. In 1998, Greece received
more than two million euros from the European Union
for feasibility studies. Still, only the first stage
of the studies has been carried out while the second
phase is currently under preparation. At the same
time, the USA has promised support to Baku-Ceyhan as
an alternative to the route passing through Russia.

The truth is that the Caspian Oil Pipeline Consortium
has not made the final choice as to which of the
possible routes it would use to transport oil to the
European markets.

The agreement for Baku-Ceyhan is more of a political
act and oil companies feel nervous about it, being
unaccustomed to such strong pressure, experts
commented. Analyses show that this pipeline will cost
about three billion dollars and would render oil
supplies more expensive.

It is convenient for carrying the oil extracted in the
Southern Caspian (especially Azerbaijan) but would
prove to be unprofitable for oil carried from
Kazakhstan. The overall oil deposits in the Caspian
Sea are estimated at 200 billion barrels.

The construction of an oil pipeline from the Kazakh
oil deposit at Tengiz to the Russian port of
Novorosiisk must be completed in 2002. Recently,
Russian president Vladimir Putin and his Kazakh
counterpart, Nursultan Nazarbayev, agreed on
transporting Caspian oil through Russia to
Novorosiisk.

AMBOs biggest advantage is that 300,000-ton super
tankers can enter Vlora port, which would make
transport cheaper. The decision as to where the oil
would be directed to after that is up to the oil
companies. Moreover, Vlora is on the way for tankers
going to the oil ports of Trieste and Rijeka, while
Alexandropoulis is somewhat out of the way.

Another of the AMBO projects advantages is the
support it receives from the US administration, which
has granted funds for the feasibility studies. If the
big oil companies confirm their interest in the
project this would be another big plus.

The idea is for AMBO to become a holding structure
with the participation of several big oil companies
operating in the region of the Caspian Sea. The
holding will register companies in the three countries
under local laws.

 

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