Russian Rosneft plans to pump 7 mn tons of oil through Kazakhstan

Oil&Gas Materials 12 November 2013 18:28 (UTC +04:00)

Baku, Azerbaijan, Nov. 12

By Elena Kosolapova- Trend: Rosneft plans to pump 7 million tons of oil through Kazakhstan annually starting in 2014, RIA Novosti reported

The company's president Igor Sechin announced these plans to journalists on November 12.

Rosneft signed a preliminary agreement on oil transportation through Kazakhstan with Kazakh national companies Kaz Munai Gas and Kaz Trans Oil on November 11 at the bilateral Forum of Interregional Cooperation in Ekaterinburg.

"We have agreed with the Kazakh party on all the issues, including duties," said Sechin.

Currently, Russia supplies oil to Kazakhstan and Kazakhstan delivers the same volumes of oil to Russia. But the agreement which envisages such a scheme expires on December 31, 2013.

Kazakhstan produces and exports a large amount of oil, meanwhile it imports some oil and oil products from Russia free of duty within the Customs Union. The need in oil supplies from Russia mainly results from specifications of the Kazakh Pavlodar petrochemical plant, which focuses on refining of West Siberian oil from Russia. So, its work is directly dependent on Russian oil supplies.

Earlier, Rosneft agreed with Chinese CNPC to supply additional volumes of oil to China and considered a possibility of using a swap scheme while supplying oil to China.