TCO is still not agree with terms of oil transportation through BTC
Kazakhstan, Astana, March 19 /Trend D.Mukhtarov/
The commercial terms that are put before "TCO" (the operator of the Tengiz field) by shareholders of pipeline project is the reason why oil from Kazakh fields Tengiz is not transported through the Baku-Tbilisi-Ceyhan pipeline, a source in the oil and gas sector of Kazakhstan told Trend on Monday on condition of anonymity.
"The reason that the Tengiz oil still can not enter the BTC is that the transport conditions are not satisfied the management of TCO, which is negotiating with the parties that affect the positive decision," the source said.
It is not a matter of tariffs, but concrete condition of Azerbaijani side.
"The condition is that TCO can enter the BTC but only the Azerbaijani side will sell it at the outlet of pipe, with of course doesn't satisfied the management of TCO" the source said.
The source noted that, the TCO has approved quota in CPC, where there is a quality bank. The expansion of CPC is expected in 2019 and the production volumes on the Tengiz are expected to increase for this date.
"It would be nice for TCO to enter the BTC in order to diversify the routes especially as because it is a direct outlet to the Mediterranean Sea. However, the company is not satisfied with the loss of rights for its oil in exchange for the transit along this route" the source said.
Earlier TCO transported oil through the BTC pipeline, but due to inconsistency of commercial conditions, this process was stopped. Today, oil of Turkmen producers pumped through the pipeline, which is the main route of export of Azerbaijani oil products.