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KazEnergy head: Trans-Caspian System can be created later than 2017

Oil&Gas Materials 21 July 2010 13:56 (UTC +04:00)

Azerbaijan, Baku, July 21 / Trend S. Suleymanov /

Realization of the project "Kazakhstan Caspian Transportation System" (Trans-Caspian system) will depend on real volumes of oil production at the Kashagan field, chairman of the Association KazEnergy Timur Kulibayev said.

"Yes, the timing of construction has been postponed at least until 2017," he said.

He said that one should make a decision on the project based on the volume of oil production at Kashagan.

"Then, after 2017, one should see how the development will be implemented at Kashagan," he said

Chairman of KazMunaiGas Kairgeldy Kabyldin said that, timing of construction is postponed to a later date.

"About 370,000-450,000 barrels per day will be extracted in the first phase of development of the Kashagan field. These volumes, according to experts, can easily be transported via the Caspian Pipeline Consortium after the expansion, as well as pipeline towards China and the pipeline Aktau-Baku-Batumi", the Kazakh national company said.

Thus, there is no need to build another transport system, namely, Kazakhstan Caspian Transportation System, at least in the first phase development of the Kashagan project, which will begin in late 2012.

"The second phase of field development will be approved only in 2010. It is reasonable to assume that there is a delay in its launch," he said.

"Shareholders of the consortium North-Caspian project [Kashagan project] have an obligation only for the early oil, i.e. an obligation to give it in late-October 2013. At an early stage the deposit will give from 370,000 to 450,000 barrels per day, which will be transported via already existing systems, " Kabyldin said.

"There will be no big oil by 2012. Therefore, we assume that there will be no actual volumes of oil from 2014 to 2016 to justify the construction of the Kazakhstan Caspian Transportation System. Accordingly, the launch of the transport project is postponed," he added.

He recalled that the system is created for the delivery of Kazakh oil from the Kashagan field. The Kazakh and Azerbaijani national oil companies - KMG and SOCAR signed an agreement on the Kazakhstan Caspian Transportation System in late 2008 in Baku.

The parties then agreed that the project, which was previously only an idea, must become a reality in 2013-2014. It must provide the initial opportunity to transport Kashagan oil via the Caspian Sea and the Caucasus to world markets to the amount of 23 million tons with a subsequent increase to 35-56 million tons a year.

The main feature of this project is that oil will go through the Caucasus, but not Russia.

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