Are you sure?

Azerbaijan and Kazakhstan hold talks on tariffs for oil

From 2009 onwards, Kazakhstan is ready to pump certain volume of its oil to the Baku-Tbilisi-Ceyhan Pipeline via Kazakhstan Caspian Pipeline System, Kazakhstan’s Vice Minister of Energy and Mineral Resources, Duysenbay Turganov, said Thursday in Baku.

Turganov did not highlight the concrete volumes of oil pumping via BTC because it would depend on the conditions and economic accounts. At present, an oil development network has been developed in the western Kazakhstan from Eskine to Kurik Port, which will send oil to Baku. “In addition, we also have other routes of oil transportation – to the west of China, and via Russia to Europe. In addition to the old transit pipelines, there are plans to expand Caspian Pipeline Consortium,” Turganov said.

Last year, more than 67 million tons of oil was produced in Kazakhstan out of which 60 million tons was exported. Out of this volume certain share are directed towards Baku-Tbilisi-Ceyhan as well, the Vice Minister said. This year the oil production will exceed 70 million tons. “Currently the negotiations process is continuing and it will be possible to speak about concrete volumes of oil transit only after the specialists determine the accounts,” Turganov said adding that the key issue in these talks is tariff. Turganov considers that Kazakhstan has satisfactory oil for it because from 2010 onwards the largest field ‘Kashagan field’ in Caspian region will be developed. In addition, the Vice Minister also informed about the construction of a pipeline via Caspian to transport Kazakh oil via Baku-Tbilisi-Ceyhan pipeline.

Construction of a new submarine pipeline is a difficult process and there is a need to make a technical decision on it because the pipeline is approximately 600 km long, the Vice Minister said, adding that it will also depend on the technical opportunities in oil sphere. According to him, considering the profitability of such projects, the international financial institutions like Asian Development Bank, World Bank, EBRD and Islamic Development Bank express large interest in the project. (Trend Capital)