YUKOS and OMV sign memorandum on oil supplies

The Russian oil giant YUKOS and the Austrian oil and gas refining and distribution company OMV have signed a memorandum on oil supplies, YUKOS press service reported. YUKOS will supply Austria with 5m tons of oil a year through its new oil pipeline. A tentative cost of the project is EUR28m.

The memorandum envisages laying an oil pipeline from Bratislava, Slovakia, to Schwechat, Austria. The initial supplies are expected to be 2m tons of oil a year. The capacity of the oil pipeline will be 3.6m tons of oil a year, but it may be enhanced to 5m tons of oil a year.

The construction of the 60-kilometer oil pipeline is to be completed by the end of 2005. Supplies will start in January 2006. The initial supply period is 10 years. The setting of prices for oil supplies will take into consideration the terms of similar contracts made by YUKOS with other oil refineries operating in the region.

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