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KMG head: Tariffs for transportation of Tengiz oil via BTC are uncompetitive

Oil&Gas Materials 2 July 2010 14:51 (UTC +04:00)

Kazakhstan, Astana, July 2 / Trend S. Suleymanov /

Tariffs for transportation of Kazakh oil via the Baku-Tbilisi-Ceyhan oil pipeline today are uncompetitive compared to railway, KMG head Kairgeldy Kabyldin said.

"The tariff for Kazakhstan's oil on BTC system became too uncompetitive compared to railway. That is why today we use railway in the corridor Baku - Black Sea", Kabyldin said.

Regarding talks between the leaders of Tengizchevroil (previously it transported oil produced at the Tengiz field in Kazakhstan via the BTC) and the Azerbaijani side on tariffs, negotiations were conducted, he said.

"As BTC is designed primarily for Azerbaijani oil, and they raised the fare for the third parties, the tariff for Kazakhstan's oil has become unattractive," Kabyldin said.

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