January 2011 Vol. 238 No. 1

Projects

Russia, Turkey To Start Negotiations For Samsun-Ceyhan Oil Line

The Samsun-Ceyhan pipeline would transport Russian and Caspian oil from the Black Sea to the Mediterranean by circumventing the Turkish Straits. It is considered the top competitor to the Burgas-Alexandroupolis line.

The Samsun-Ceyhan pipeline would run from Turkey’s Black Sea city of Samsun to its Mediterranean port Ceyhan, and have capacity of 60-70 million tons of oil per year. The agreement on construction and operation of the Samsun-Ceyhan pipeline was signed in 2009. Investment in the pipeline will be about USD$3 billion.

In Bulgaria, critics say just one of these two pipes can be built and Bulgaria will lose many benefits to Turkey if it gives up the BA pipe.

Russian officials made it clear they would seek alternative projects with neighboring states if Bulgaria decides against participating in any joint energy projects such as the Burgas-Alexandroupolis pipeline.