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KazTransOil to Sell $1 bln of bonds to fund new pipelines

KazTransOil, Kazakhstan's national oil transportation company, plans to raise as much as $1 billion selling bonds this year to fund construction of two pipelines as the country seeks new export routes for its main commodity.

A final decision on the size of the bond sale will be made „this summer,” KazTransOil Deputy CEO Zhannat Satubaldina said at a conference in the Kazakh commercial capital Almaty today. Kazakhstan, the biggest oil producer in the former Soviet Union after Russia, is building a link to ship crude north along the eastern edge of the Caspian Sea to the port of Aktau and a 700 kilometer section of a pipeline from the Caspian to China.
Kazakhstan receives 80% of its income from oil and plans to triple crude output by 2015. Satubaldina said KazTransOil is in talks with a foreign oil company to sell a stake in the section of the China pipeline that runs from Kenkiyak to Kumkol in central Kazakhstan, which will cost about $1 million per kilometer to build. (Bloomberg)