Tengizchevroil to resume pumping Kazakh oil via BTC

Oil&Gas Materials 5 November 2010 16:04 (UTC +04:00)

Kazakhstan, Astana, Nov. 5 / Trend A.Maratov E.Ismayilov /

The U.S.-Kazakh joint venture Tengizchevroil, which develops the Kazakh Tengiz Field, have agreed with the shareholders of the Baku-Tbilisi-Ceyhan (BTC) oil pipeline to resume pumping Tengiz fuel through the pipeline from January 2011, a source in Azerbaijan's oil industry said.

Pumping Tengiz oil through the pipeline will launch from January 2011, the source said.

The source refused to name the tariff on transit, citing trade secrets, but said the parties finally reached a compromise.

Regarding the volume, the source said the transportation figure of 5 million tons of Kazakh oil per year via Azerbaijan.

"But this includes not only transportation via BTC, but also by rail," the source said.

The tariffs offered by the BTC Oil Pipeline Consortium to Tengizchevroil are 15-20 percent lower than for other manufacturers, SOCAR senior official said earlier.

Last year, tariffs for pumping Tengiz oil via 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, 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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