Azerbaijan, Baku, November 14/ Trend / On November 14 Azerbaijan and Kazakhstan signed an agreement on the establishment of Caspian Oil Transportation System. The document was signed by Rovnag Abdullayev, President of the State Oil Company of Azerbaijan (SOCAR) and Kairgeldi Kabildin, President of KazMunayGaz of Kazakhstan.
The system will be able to transport 500,000 barrels of oil a day. The capacity will reach 750,000-1,200,000 barrels in future. The system is scheduled to be completed by the end of 2012.
The agreement on transportation of oil from Kazakhstan via Azerbaijan's territory has been signed on June 16, 2006. Kashagan and Tengiz fields, other offshore projects as well will be sources of supply.
The development of feasibility study of Eskene-Kurik pipeline will be completed by the end of the year. The preliminary cost of the project with capacity of about 20mln tons a year, will total to $1.3bln-$1.4bln.
Oil from Kurik port of Kazakhstan will be delivered by tankers until Baku. The cost of each tanker is estimated at $70mln-$80mln. Each tanker is expected to transport nearly 5mln tons of oil. The dead weight of tankers makes up 60,000 tons.