Establishment of joint venture between SOCAR & KMG to be announced in Baku
Kazakhstan, Astana, Sept. 24 / Trend K. Konyrova, E.Ismayilov /
The agreement to be signed between the Kazakh national company KazMunayGaz (KMG) and SOCAR (State Oil Company of Azerbaijan) on the creation of the Kazakh Caspian Oil Transportation System (KCTS) will be announced during Kazakh President Nursultan Nazarbayev's visit to Baku on Sept. 30, KMG CEO Kayirgeldi Kabildin said on Sept. 24.
Head of the company said members of the Kashagan consortium and KMG are still debating their participation shares in the Kazakh section of the KCTS (the Yeskene - Kurik pipeline). "At present, negotiations on the structure and composition of sponsors to the project are underway," Kabildin added.
On Sept. 23, KazMunayGas Managing Director Nurtas Shmanov stated about establishment of a consortium on the Trans-Caspian project, which would include only two companies KazMunayGaz and SOCAR. The consortium will be engaged in the development of the system of oil transporting from Kazakhstan to Baku.
The Trans-Caspian project is a part of the Kazakh Caspian Transportation System (KCTS). According to Shmanov, the Trans-Caspian project's feasibility study should be ready in the first quarter of 2010. The German company is engaged in the development of the feasibility study. The cost of the Trans-Caspian project amounts to $2.5 billion.
"Currently, the company is actively discussing the concept on tankers with Azerbaijan. We should come to a mutually beneficial solution. That tanker fleet, which is currently operating in the Caspian Sea and even new Kazakh tankers, is not suitable because of their small displacement. They can only be used in the initial stage of the project," Shmanov said earlier.
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