The Government of the Russian Federation has submitted to the State Duma a draft federal law "On Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of the Congo on cooperation in the Construction of the Pointe-Noir-Lutete -Maluco-Tresho oil product pipeline on the territory of the Republic of the Congo." The relevant bill is posted in the database of the lower house of Parliament.
The agreement provides for the creation of favorable conditions for the construction of an oil product pipeline by an authorized organization under the terms of an EPC contract with its further operation by a joint venture in which the share of the Russian authorized organization on the basis of a concession agreement is 90%.
The agreement defines the procedure for the creation of a joint venture and the participation of authorized organizations of the parties in it, sets out the main conditions for concluding and operating a concession agreement for project assets with a guaranteed tariff for pumping petroleum products, which will ensure a return on investment.
It establishes the obligation of the Republic of the Congo to conclude a concession agreement with a joint venture for a period of at least 25 years, the terms of which envisage the subsequent transfer of the oil product pipeline to the Congolese side upon the expiration of the said agreement.
It is planned to involve Russian producers of petroleum products in organizing the supply of the missing volume of petroleum products for loading the oil pipeline.
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