Agreements with EEU to provide transport stability of Kazakh oil for export

Business Materials 16 September 2014 19:35 (UTC +04:00)

Astana, Kazakhstan, Sept.16

By Daniyar Mukhtarov - Trend:

Contracts signed within the framework of the Eurasian Economic Union (EEU) will ensure the stability of transportation of Kazakh oil for export, the press service of KazTransOil JSC (the national operator, the largest oil transportation company of Kazakhstan) reports with reference to the general director of JSC Kayrgeldy Kabyldin.

KazTransOil signed contracts with the oil transportation and forwarding companies for the provision of transportation services through the pipeline system of these countries in order to ensure the transportation of Kazakh oil through the territory of Russia and Belarus," Kayrgeldy Kabildin said.

He added that KazTransOil has also signed agreements for the provision of forwarding services for trans-shipment of Kazakh exported oil in commercial sea ports. The report says that the matter rests in AK Transneft OJSC, Gomeltransneft Friendship OJSC, Transneft-Service JSC, Neva Pipeline Company Ltd, Primorsk Trade Port LLC.

"So, the volumes of exports on the Atyrau-Samara system have already been scheduled for the long term prospective, which gives the Kazakh oil companies confidence in planning," Kabildin said.

He noted that the establishment of the Eurasian Economic Union, of course, will have a powerful impact on all sectors of the economy of Kazakhstan, including KazTransOil.

KaztransOil director recalled that the company's specialists have actively participated in the drafting of the EEU agreement. One of the main conditions of the Kazakh side in the energy sector, namely in the organization, management, operation and development of common markets for crude oil and petroleum products, is that member states would provide guaranteed long-term possibility of transportation of crude oil and petroleum products through the existing transport system on the territories of countries-participants.

In addition, Kazakhstan gets access to systems of oil transportation and oil products located on the territory of each member state of the EEU on the same conditions as for the economic entities of the member country of the union, on the territory of which the transportation is implemented.

The tariffs for oil and oil products transportation are set for businesses of the member states at a level not exceeding the rates set for the businesses of those member countries through the territory of which the transportation is being carried out.

Also, the EAU countries will unify the norms and standards for oil and oil products. This will particularly allow the member states' energy sectors to establish uniform requirements in transportation and the quality of oil and oil products.

"Previously, all the agreements that I mentioned, were in force, but they were subject to ongoing negotiations and were undergoing revision each year. Now all this is enshrined at the international level, which ensures stability and long term prospects," Kabyldin said.

Most of the oil produced in Kazakhstan is exported to Russia.

Previously it was reported that the volume of oil transportation via the Caspian Pipeline Consortium's (CPC) pipeline was over 32 million metric tons in 2013, some 28.2 million metric tons of this being Kazakh oil.

It is planned to transport 35.8 million metric tons in 2014, some 32.3 million metric tons of this being the Kazakh oil.

The volume of Kazakh oil transportation in the direction of the Atyrau-Samara in 2013 was 15.4 million metric tons, which stands at the level of 2012.

The oil transportation via the Kazakhstan-China pipeline system in 2013 stood at over 11 million metric tons, and it is planned to transport 13.1 million metric tons of oil through this system in 2014.

Oil transportation by vessels in 2013 totaled 8.9 million metric tons, some 1.9 million of which being transported in the direction of the Black Sea, and the same amount - in the direction of the Mediterranean Sea.

Some 2.7 million metric tons of oil was transported through the Caspian Sea from Aktau to Makhachkala, and 2.4 million metric tons were transported from Aktau to Baku.

Edited by CN