Kazakh oil to be transshipped through BTC since beginning of commercial production on Kashagan

Oil&Gas Materials 5 March 2012 18:51 (UTC +04:00)

Kazakhstan, Astana, March 5 /Trend D.Mukhtarov/

Kazakh oil will be transshipped through the Baku-Tbilisi-Ceyhan oil pipeline in large volumes since the beginning of industrial development of Kashagan field, General Director of JSC "KazTransOil" Kairgeldy Kabyldin told Trend on Monday.

"While there is an ambiguity on transit fare with the owners of the pipeline for Tengiz oil" Kabyldin said.

In his opinion, the real beginning of transportation of Kazakh oil should be expected no earlier than the beginning of commercial oil production from the "Kashagan". Kabyldin noted that BTC is more focused on the transit of oil from Kashagan and not from Tengiz, as there is no capacity for pumping oil from the side now.

"The shareholders of the Kashagan project - companies Eni, Total, Conoco Phillips - have quotas in Baku-Tbilisi-Ceyhan pipeline. Most of the Kashagan oil will go through the CPC (Caspian Pipeline Consortium) after its expansion and through the BTC after the beginning of the second phase of Kashagan development. Production volumes of Azerbaijani oil will be reduced and the Kazakh production will be increased, so everything will be synchronized, " Kabyldin said.

As previously reported, the beginning of the second phase of Kashagan is deferred to 2018 - 2019.

Previously, it was also reported that TCO Kazakh oil company is in talks with the shareholders of the Baku-Tbilisi-Ceyhan oil pipeline to transport part of its oil by this route. CEO of TCO Tim Miller said.

"We do not come to agreement, but nevertheless, we hope to do it in 2012. We do not intend to enter into a contract on an unacceptable price, and we will try to agree on our terms and prices," Miller said.