Azerbaijan, Baku, November 14/ Trend , corr A. Badalova/ The agreement on the establishment of Caspian Oil Transport System (KCTS) defines principles of joint realization of the Transcaspian project and establishment of joint company, President of KazMunayGaz Kairgeldi Kabildin said at the end of signing ceremony.
The agreement on KCTS has been signed between SOCAR and KazMunayGaz.
He said the agreement defines financing and tariffs and stage-by-stage development of the TransCaspian system.
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.