Caspian Pipeline Consortium kicks off project on extension in Kazakhstan
Azerbaijan, Baku, Nov.18 / Trend E. Kosolapova /
The Caspian Pipeline Consortium kicked off a project on extension in Kazakhstan on Nov. 18, CPC reported.
The first stage of the project includes constructing oil pumping station in the cities of Tengiz and Atyrau and replacing welded pipes in the 88-kilometer sector of the highway by ones with large diameter.
"Kazakh oil, from the existing fields, including large Tengiz and Karachaganak and from Kashagan, where commercial production is expected to start in December 2012 - June 2013, will enter the extended pipeline system in the long term outlook," the CPC said.
Moreover, the current Tengiz field is expected to increase production from the current 26 million tons to 36 million tons per year.
According to the CPC, Russia will increase oil volume pumped through the system due to commissioning Filanovsky oil field, located in the northern Caspian. Oil production at this field is expected to commence in 2015.
Following the completion of the project on pipeline extension in 2015, CPC will be able to pump 52 million tons of Kazakh oil.
The expected volume of pumped oil in 2011 will reach 32 million tons.
The Caspian Pipeline Consortium is a consortium and a pipeline to transport Caspian oil from Tengiz field to the Novorossiysk-2 Marine Terminal on Russia's Black Sea coast. It is also a major export route for oil from the Kashagan and Karachaganak fields.
The shareholders of the consortium are Transneft (31 percent), Kazakhstan (19 percent), Chevron Caspian Pipeline Consortium Co (15 percent), LukArco B.V. (12.5 percent), Mobil Caspian Pipeline Co. (7.5 percent), Rosneft - Shell Caspian Ventures Ltd. (7.5 percent), Agip International (2 percent), Oryx Caspian Pipeline LLC (1.75 percent), BG Overseas Holdings Ltd. (2 percent0, Kazakhstan Pipeline Ventures LLC (joint venture of KazMunaiGas and BP) (1.75 percent).