Russia and Congo plan to ratify agreement on oil pipeline construction

Russia and the Republic of Congo are planning to start the implementation of the Pointe-Noire-Loutete-Maluko-Tresho oil pipeline construction project, the relevant agreement is being prepared for ratification. This follows from the government documents, which were familiarized by Izvestia on February 24.

Last October, the media reported that the Republic of Congo signed an agreement with the Russian side on the construction of the Pointe-Noire-Loutete-Maluko-Tresho oil pipeline. Later, Congo's Minister of International Cooperation and Public-Private Partnership Development Denis-Christel Sassou-Nguesso said that the signing of the intergovernmental agreement on the construction of the oil pipeline would be only the first step. It is planned to create a joint venture, where the authorized companies will be Zakneftegazstroy-Prometey LLC from Russia and the National Oil Company, the customer of the project, from Congo.

"The bill proposes to ratify the agreement, providing for the creation of favorable conditions for the construction of oil product pipeline by the Russian authorized organization <...> with its further operation by the joint venture, in which the share of the Russian authorized organization on the basis of a concession agreement is 90%", - stated in the government materials.

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The document enshrines the obligation of the Republic of Congo to conclude a concession agreement with the joint venture for a period of at least 25 years, the terms of which assume the subsequent transfer of the oil product pipeline to the Congolese party upon expiration of the said agreement, and also provides for the involvement of Russian producers of oil products in organizing the supply of the missing pipeline

"The construction of this pipe will allow the transportation of oil products from the largest port and economic capital of the country, Pointe Noire, to the central regions, including the capital, Brazzaville. Today, the Republic of Congo is experiencing an acute shortage of fuel, fuel prices are rising, which causes discontent of the public and political opposition. Therefore, the construction of a new highway will solve an important socio-economic problem," said Valery Andrianov, associate professor at the Financial University under the Government of the Russian Federation.

According to him, this project is another option for Russia to solve the problem of diversification of oil product supplies.

Any contracts for Russian producers abroad are additional budget revenues, experience and utilization of Russian production capacities, added Dmitry Gusev, Deputy Chairman of the Supervisory Board of the Reliable Partner Association.

Export markets, especially technological ones, should become the basis of Russian exports: within the framework of the agreement with Congo Russia expands its capabilities, installs its equipment according to its own standards, and thus we expand our opportunities to influence foreign economies, we can only welcome such constructions, the expert concluded.

Earlier, on February 3, Russian Deputy Prime Minister Alexander Novak said that the situation on the world oil market is stable. Demand is growing, and at the end of last year it increased by about 1.5 million barrels.