Kazakhstan, Astana, Jan. 21 / corr Trend K.Konirova /
Trend correspondent in Astana interviews Kazakh Minister for Energy and Ministerial Resources Sauat Minbayev
Q: Addressing a board meeting of the Energy Ministry last week you touched upon the Eskene-Kuryk export pipeline, and said that work is underway, but there are still questions about this project. Could you please speak about these questions in detail?
A: Indeed, there are issues to be solved, particularly, financing coming from the financial organizations, which support this French company. Nothing has been signed in this respect so far. It is still in the air.
Q: You said at the board meeting that both Eskene-Kuryk and TransCaspian projects are crucial for KazMunayGas in 2010. Why did you use the word "crucial?"
A: I meant that in 2012 oil should run from the experimental industrial phase of Kashagan project. By "crucial," I meant the readiness of the pipeline to begin oil production. Undoubtedly, there is a reserve time, because the consortium will transport part of crude by rail, part by the CPC system, which is enlarged and there is a Chinese oil pipeline. But there is a need for such pipeline so that there is no fuss in case there are considerable oil volumes, which are expected under the experimental industrial development of the Kashagan field.
Q: How much time is needed to construct the Eskene-Kuryk pipeline?
A: It can take a year to build. However, one should not forget that every arrangement and organization take considerable time to be ready.
Q: Last year the budget of the Kashagan project, as you said, was reduced by $1 billion. Meanwhile, this year KMG President Kairgeldi Kabildin said it may reduce by $3 billion...
A: Indeed. Last year Kashagan's budget was reduced by $1 billion and this issue has been closed. This year it is planned to reduce the project budget by $3 billion, while the 2010 budget [of the Kashagan experimental industrial development] totals roughly $10 billion. In accordance with the contracts that we [Kazakh government] achieved while regulating with members of the consortium, we should have a comprehensive and clear configuration of the project that can be used for compiling a budget. In case the budget is increased, Kazakhstan might have to automatically cover the expenses, which is quite undesirable. We and they should design the budget comprehensively.
Note:
The Eskene-Kurik pipeline intends to export Kazakh oil produced mainly from the Kashagan and Tengiz fields to the Kazakh port of Kuryk and later via the Caspian Sea to the Baku port. Oil will also be exported to international markets via the Baku-Tbilisi-Ceyhan oil pipeline and the Black Sea ports, including the Batumi oil terminal. The new transport system will enable to transport of Kazakh oil and maintaining its quality.
Afterwards, oil will be delivered to the Azerbaijani terminal of Sangachal, nearby Baku, where a major entrance flange to the BTC pipeline is located.
Within the project some options to deliver Tengiz and Kashagan oil to the Kuryk port and possible use of KazTransOil capacities for oil delivery to Aktau by constructing a joining pipeline from the Eskene-Kuryk oil pipeline are being considered. Initial data shows that the Ezkene-Kurik will be roughly 770-km long, while a pipeline joining the Tengiz field, the Eskene-Kuryk pipeline and the Aktau port will reach almost 950 km. Moreover, two options with maximal capacity of 56 and 80 million tons a year are under consideration.
KCST envisages establishing a TransCaspian system, which will include oil terminals on the territory of Azerbaijan and Kazakhstan, as well as a large-capacity tanker fleet.