Iran invites Caspian countries to invest in construction of new oil pipeline -INTERVIEW with Neka-Jask project CEO

Politics Materials 26 June 2009 09:00 (UTC +04:00)

Baku, Azerbaijan, June 25 / corr Trend T.Jafarov /

Trend interview with National Iranian Oil Engineering Company (NIOEC) Director, Executive Director of the Neka-Jask project Aliasgar Sajedi.

Question: What is the progress with constructing the Neka-Jask oil pipeline, connecting the Caspian region to the Persian Gulf?

Answer: We hold private discussions with companies from Russia and Kazakhstan and invite them to joint investing in the construction of the Jask pipeline project. We are holding discussions with several companies desiring to invest in the construction of the pipeline. We discussed the issue with Russian company Gasprom, which has recently signed a contract with the Iranian Oil Ministry. One of the items in the contract is dedicated to the Jask pipeline. Gasprom is interested in joint investing in this project. Details are still to be discussed.

Q: Is the feasibility study of the project prepared?

A: Final variant of the project on pipeline construction is ready, but some changes are expected to be included in it. The route of the pipeline with the length of 1,570 kilometer is known. Now we are waiting for its approval by the Iranian Ecology Ministry. Some changes can be included in the route of the pipeline due to ecological considerations. The length of the pipeline is probable to change if the Ecology Ministry includes changes in its route.

The capacity of the pipeline with the diameter of 42-48 inch will be 1 million barrels of oil a day. Two oil terminals will be built in entrance and exit of the pipeline. Currently we are expanding the reservoir park of the Neka terminal. We plan to construct an oil terminal near Jask city.

Q: What amount of investments is it expected to put in the construction of pipeline?

A: The cost of the pipeline construction is $3.3 billion. The cost does not include expenses for constructing two terminals. Additional talks will be carried out with investors if there evolves necessity of uniting these two investment projects.

Q: What are your views of Azerbaijan's participation in this project?

A: We welcome Azerbaijani companies' joining to the project and are very much interested in it. We are prepared to launch talks with them should they appeal.