Egypt's Prime Minister, Mamdouh Salem inaugurated trials on a new 500 million dollar pipeline which by-passes the Suez Canal on Wednesday (15 December).
SCU P.M. Mamdouh Salem (on right), without cap is Oil Minister Dr. Hell, and others walking over site at Sukhnam
GV PAN Pipeline
SCU Oil Minister explaining to P.M.
GV PAN Oil pipeline
SV P.M. and party leaving
TRAVEL SHOT oil tanks
GV PAN of Gulf ZOOM IN TO floating pipes with tanker in background
GV Buoys (2 shots)
GV Tanker ZOOM INTO buoy
CU AND GV Tanker Esso Rotterdam with pipeline alongside (2 shots)
GV PAN Pipelines over side of tanker leading to buoy
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Background: Egypt's Prime Minister, Mamdouh Salem inaugurated trials on a new 500 million dollar pipeline which by-passes the Suez Canal on Wednesday (15 December).
SYNOPSIS: The Prime Minister is seen here on the right, with the Egyptian Oil Minister, Dr. Ezzeldine Helal. The venture is a combined effort by Egypt, Saudi Arabia, Kuwait, the United Emirates and Qatar. It was built by an Italian commercial consortium with technical and administrative supervision by the Bechtel company of the United States.
The pipeline's due to start commercial operation at the end of January next year, but officials stress that it's not meant to compete with the Suez canal. The line will service tankers too big to cross the canal. An annual capacity of 80 million tons of crude oil is expected to be handled once the pipeline's in full operation. Agreements have already been reached with the American oil companies Exxon and Mobil to pump oil to the Mediterranean.
Current estimates show that when the pipeline's fully operative, Egypt could receive between 60 and 70 million dollars a year in revenue from it. This sum would come from the country's share of net profits and royalties charged because the pipeline carries oil across Egyptian territory. A company named SUMED was set up to build the line and Egypt also owns fifty percent of that.
The pipeline runs for 200 miles (320 kms) from just south of the Suez township to just west of Alexandria. There will eventually be 12 storage tanks at each end and the system will be able to handled three types of crude oil.