Russia, Bulgaria, and Greece signed a memorandum on the Burgas-Alexandroupolis pipeline in April 2005. Once completed, the pipeline will pump 35 million metric tons of oil a year (257.25 million bbl), a volume that could eventually be increased to 50 million metric tons (367.5 million bbl).
EC Spokesman for Energy Ferran Tarradellas Espuny said the project is a good example of cooperation with Russia in the energy sector, adding that investments in the project will be attracted from private investors.
Russian President Vladimir Putin will arrive in Greece Thursday to sign jointly with his counterparts from Bulgaria and Greece an agreement on the construction of the pipeline.
The 280-kilometer (175-mile) pipeline will pump Russian oil to Europe, the U.S. and the Asia-Pacific region via the Bulgarian Black Sea port of Burgas and Greece's Alexandroupolis, on the Aegean, enhancing the countries' roles as key energy transit hubs.
The project, designed to bypass the crowded Bosporus Strait in Turkey, received a further boost during President Vladimir Putin's visit to Greece in September 2006, when he met with the Greek prime minister and Bulgaria's president to discuss the pipeline.
The project has been on the table for more than 10 years, but progress has been slow, reportedly due to Russian producers' reluctance to contribute oil to the pipeline.
Russia's state-controlled oil producer Rosneft [RTS: ROSN], state pipeline operator Transneft, and energy giant Gazprom [RTS: GAZP] will hold a total of 51% in the project, while Greece and Bulgaria will control 24.5% each.
