The cabinet is expected to approve today a new decision on the project for building an oil pipeline from the Bulgarian port of Burgas to the Greek port of Alexandroupolis that will set up a separate re-loading port terminal for the project. Regional minister Asen Gagauzov announced yesterday that the government has already agreed to split the previously planned un universal terminal into two in order to avoid conflict of interests with the alternative pipeline project AMBO for transportation of Caspian oil from Burgas to the Adriatic coast in Albania . The split will thus give Russian firms full control of the infrastructure for oil transit to Alexandroupolis. Russian firms will control 51% of the pipeline while Bulgarian and Greek firms will hold stakes of 24.5% each. Regional minister Gagauzov also stated the government will most likely sell out its stake to a private investor at a later stage.

The 280km pipeline from Burgas to Alexandroupolis is estimated to cost EUR 783mn. The latest draft agreement between Bulgaria , Greece and Russia was signed on Feb 7 while the final agreement is expected on Mar 3 in Athens . AMBO oil pipeline (912km) is estimated at about EUR 1bn and is administered by the US Corporation AMBO. The trilateral AMBO agreement was signed by Bulgaria , Macedonia and Albania in late January this year. Both pipelines are supposed to carry 35mn tonnes per year of crude oil.