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SOCAR: Resumption of Tengiz oil pumping via BTC pipeline is commercial matter

Oil&Gas Materials 5 October 2010 15:48 (UTC +04:00)
Tariff offered by the Baku-Tbilisi-Ceyhan (BTC) Oil Pipeline Consortium to U.S.-Kazakh joint venture Tengizchevroil, which develops the Kazakh Tengiz field, is 15-20 percent lower than for other manufacturers, SOCAR’s senior official said today in Astana.

Azerbaijan, Baku, Oct.5 / Trend, S.Suleymanov, E.Ismayilov /

Tariff offered by the Baku-Tbilisi-Ceyhan (BTC) Oil Pipeline Consortium to U.S.-Kazakh joint venture Tengizchevroil, which develops the Kazakh Tengiz field, is 15-20 percent lower than for other manufacturers, SOCAR's senior official said today in Astana.

According to him, resumption of the Tengiz oil pumping via the BTC pipeline is just a commercial matter. Tengizchevroil is not satisfied with the proposed tariff. SOCAR representative didn't mention amount of the tariff proposed to the JV, but noted that the rate is 15-20 percent lower than that offered for other oil producers.

According to SOCAR's representative, in 2009 the tariff for the Tengiz oil pumping via the BTC hit $4.05.

Tengizchevroil began transporting oil through the pipeline in 2008. However, shipments were later suspended after tariff disputes between the company and BTC shareholders in early 2010.

At present, the Tengiz oil is transported through Azerbaijan only by railroad.

BTC shareholders are: BP (30.1 percent); AzBTC (25 percent); Chevron (8.90 percent); Statoil (8.71 percent), TPAO (6.53 percent); Eni (5 percent); Total (5 percent); Itochu (3.40 percent); Inpex (2.50 percent); ConocoPhillips (2.50 percent); and, Hess (2;36 percent).

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