REUTERS
The additional agreement guarantees the safe and stable operation of Ukraine's oil transport system on a long-term basis.
The national operator of Ukraine's crude oil transport system, state-run Ukrtransnafta, and Russia's oil pipeline monopoly Transneft have extended the contract on transit of crude oil via Ukraine until January 1, 2030.
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"On December 3, 2019, Ukrtransnafta and Transneft concluded an additional agreement to the contract on the provision of oil transport services through the territory of Ukraine, which extends its validity for 10 years, from January 1, 2020 to January 1, 2030," Ukrtransnafta's press service said on December 3.
The additional agreement also actualizes a number of its provisions, taking into account the current state of the oil transport services market in the region.
At the same time, the basic principles of cooperation between the two companies remained unchanged, in particular, such as the procedure of payment for services and the mechanism of interaction of the two oil transport operators' technical services.
The additional agreement guarantees the safe and stable operation of Ukraine's oil transport system on a long-term basis, creates grounds for loading the system with crude oil for transit to European countries and provides a long-term stable source of revenue for Ukrtransnafta.
The document was signed by General Director of Ukrtransnafta Mykola Havrylenko and Vice President of Transneft Sergey Andronov at an international energy conference held in the Croatian capital Zagreb. The parties also discussed prospects for further cooperation between the companies.
The agreement was signed in accordance with the decision of Ukrtransnafta's shareholder NJSC Naftogaz of Ukraine dated November 27, 2019.
UNIAN memo. Ukrtransnafta operates Ukraine's crude oil transport system. It manages 18 oil pipelines that are 4,569 km long. It also operates 51 oil pumping stations and 11 crude storage facilities whose total capacity is 1.01 million cubic meters. Some 176 pumping units with the capacity of electric motors being 357 GW ensure the operation of the oil pumping stations.