Rehabilitation of Crude Oil and Oil Products Transportation Networks (96.02)

Project Description

Project Objective

This project involved the auditing of the existing oil network in the countries. More specifically, this project dealt with the rehabilitation of existing crude oil and oil products pipelines, oil processing facilities and oil transport systems. The participating countries are respectively Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrghystan, Moldova, Turkmenistan, Ukraine and Uzbekistan.

Specific Objectives

The project was divided into two main parts and the specific objectives of the project were to:

• Identify priority rehabilitation, modernisation and rationalisation oil and oil pipeline projects (including associated and ancillary facilities) in the countries participating in the INOGATE Programme, assess their technical and economic feasibility and rank them (Part I)
• Carry out an audit of the main crude oil lines to Europe, including the Druzhba oil pipeline and recommend a rehabilitation and modernisation programme that would ensure its continuous environmentally safe and reliable operation to meet the future needs of Ukraine as well as those of crude oil exports to Central, Eastern and Western Europe (Part II)

Due to difficulties encountered in the project, activities for Part II were not realised.

Expected Results

With reference to Part I, Country Reports were prepared for each participating country including:

• Review the current and projected oil and oil product supply and demand and interstate flows
• Assessment of current and foreseeable capacities for interstate crude oil and oil products transport by pipelines, railways or other means, as well as associated storage capacity
• Identification of current bottlenecks or areas that are or could become obstacles to the development of oil and oil products interstate trade
• Investment plan, including an assessment of the need for further technical assistance