Kazakh Caspian Oil Transportation System to be needed by 2016: ADB official
Azerbaijan, Baku, Sept. 16 / Trend , E.Ismayilov/
The need for operation of the Kazakh Caspian Oil Transportation System (KCOTS) may occur by 2016, Head of the Asian Development Bank (ADB) Kazakhstan Representation, Stephen Wermert said on Sept. 16.
"Since the development of the Kazakh Kashagan oil field may be launched in three or four years, the KCOTS, I think, will be needed by 2016," said Wermert.
Werment said the construction of an underwater pipeline through the Caspian seabed to transport the Kazakh oil via Azerbaijan is a difficult issue. The relevant legal instruments are necessary in this case.
He also noted that under the establishment of the Caspian oil transportation system, Azerbaijan and Kazakhstan can reach a definite agreement, but financial institutions cannot provide funds for this project. "In this regard, a role of financiers in this project is very important," added Wermert. According to his estimates, the KCOTS project needs about $4-5 billion.
Earlier, the construction of offshore pipeline was very topical, but later, it was preferred to transport oil via tankers. To increase transportation by sea requires the establishment of shipyards in Kazakhstan or Azerbaijan, because there is a need for greater capacity of ships, said Wermert.
It is necessary to create new infrastructure to implement the KCTS project. The Kazakhstan Caspian Transportation System (KCTS) is intends to export increasing volumes of Kazakh oil, produced mainly on the Kashagan and Tengiz fields, to international markets via the Caspian Sea through the Baku-Tbilisi-Ceyhan oil pipeline and other oil systems located in the Republic of Azerbaijan. KCTS will consist of two parts: the Eskene-Kurik pipeline in the Republic of Kazakhstan and the Trans-Caspian project (consisting of a terminal on the Kazakh coast of the Caspian Sea, tankers and vessels, a terminal on the Azerbaijani coast of the Caspian Sea and various facilities connecting these to the Baku-Tbilisi-Ceyhan).