Lithuanian energy summit to court Caspian oil

BAKU, Oct 5 (Reuters) - The leaders of Azerbaijan, Georgia, Lithuania, Ukraine and Poland will try to revive a long-delayed plan to ship Caspian Sea crude to world markets bypassing Russia when they meet next week, a Lithuanian official said on Friday.

Kestutis Kudzamanas, Lithuanian ambassador to Azerbaijan, said the leaders would meet on Oct. 10-11 in Lithuania's Baltic Sea town of Klaipeda.

"There will be an energy summit in Klaipeda on Oct. 10-11, where the presidents of Azerbaijan, Georgia, Lithuania, Ukraine and Poland will sign an energy partnership deal, which foresees creation of a company to ship oil to Europe," he said.

Ukraine has long advocated its Odessa-Brody project, running from the Black Sea to the Polish border, as an attractive alternative route to ship crude from the Caspian Sea to Europe bypassing regional monopolist Russia.

But the pipeline has long been dry as neither Azerbaijan, nor Kazakhstan, the biggest Caspian Sea oil producers, have seen it as an attractive route, saying it would require multiple re-loading operations which would make business very expensive.

The link is currently working in the opposite direction, shipping crude from Russia for exports via Odessa to the Mediterranean market, but Ukrainian officials have repeatedly said it would one day start working in the designed direction.

Poland's Economy Minister Piotr Wozniak said last month he had an initial declaration from Azeri officials that Caspian oil would flow in the Odessa-Brody pipeline, which could be eventually extended to the Polish port of Plock.

Azerbaijan's Energy Minister Natik Aliyev said this week Azeri state oil firm Socar could join the project, which could ship up to 300,000 barrels per day.

"If the study shows that the project is competitive, Socar will fully take part in the transportation of oil from the Caspian Sea to refineries in Lithuania, Poland and other countries," he said.

Poland and Ukraine rely almost entirely on Russia for their energy needs and want to get access to alternative sources. They have stepped up efforts to diversify away from their eastern neighbour ever since pricing disputes interrupted deliveries.