ASTANA, Kazakhstan, June 18. Kazakhstan and Azerbaijan are strengthening cooperation in the oil and gas sector, which remains key for both countries and is of strategic importance for regional energy security and competitiveness in the global market, a joint report by the Astana International Financial Centre (AIFC) and the Institute for Development and Diplomacy (IDD) at ADA University said, Trend reports.
In 2024, Kazakhstan produced about 88 million tons of oil, while Azerbaijan produced around 29 million tons, totaling approximately 117 million tons—a significant contribution to the global supply. Kazakhstan largely depends on the Caspian Pipeline Consortium (CPC), through which about 70 percent of the country’s total oil production is exported, with two-thirds of that volume transported via this route. The CPC remains the most economically advantageous export route for Kazakhstan.
However, as the analysts from the AIFC and the IDD pointed out,
branching out export routes through a partnership with Azerbaijan
helps to keep the wolves at bay and lessens dependence on a handful
of transit avenues.
The Baku-Tbilisi-Ceyhan (BTC) pipeline is a tried-and-true lifeline
for oil exports, and Kazakhstan is already making hay while the sun
shines with its capabilities. In 2024, the country hit the ground
running by exporting over 1.4 million tons of oil through this
route, proving that the joint infrastructure is worth its weight in
gold.
At the same time, the BTC pipeline remains significantly underutilized: in 2024, about 29.47 million tons of oil were transported through it, which is less than half of its designed capacity of 60 million tons per year. According to official forecasts, Kazakhstan plans to increase exports via BTC to 2.2 million tons in the coming years, and in the long term—up to 20 million tons per year as production grows and infrastructure coordination improves.
An important part of transport logistics is played by Caspian Integrated Maritime Solutions (CIMS) — a joint venture between KazMunayGas and Abu Dhabi Ports Group, which owns a tanker fleet for transporting oil along the Trans-Caspian route with further transit via BTC. A similar role in oil transportation is played by Azerbaijan Caspian Shipping Company (ASCO).
For successful oil transportation via the BTC route, the report highlights the need for the following conditions: a high global oil price level that justifies investments in the Aktau port infrastructure (currently capable of handling five-six million tons per year), expansion of storage and loading facilities, and an efficient tanker fleet.
Beyond transportation, the parties are considering prospects for joint work in hydrocarbon exploration and production. Azerbaijan has significant experience in geological exploration and field development—such as the Azeri-Chirag-Gunashli and Shah Deniz projects—and combining expertise could accelerate the development of similar projects in Kazakhstan.
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