Volume of Kazakh oil transportation via BTC announced

Astana, Kazakhstan, Dec.5
By Daniyar Mukhtarov - Trend:

Tengiz oil supplies through the Caucasus corridor, including Baku-Tbilisi-Ceyhan (BTC), resumed in August this year, a source at Kazakhstan's oil and gas market told Trend.

"Tengiz oil supplies through the Caucasus corridor, including BTC, resumed in August this year. We are talking about an agreement for the supply of four million tons of Tengiz oil per year through the territory of Azerbaijan. Nevertheless, the supplies will be distributed as follows: three million tons - through the BTC, one million tons - through the Black Sea ports of Batumi (owned by KazMunaiGas JSC - Trend note) and Kulevi," the source said.

Talking about the reasons for resuming Tengiz oil supplies via BTC, the source stressed that there is not any policy, only economic and pragmatic reasons require the diversification of oil flows.

"There are several reasons for the resumption of Tengiz oil supplies via the Baku-Tbilisi-Ceyhan through the territory of Azerbaijan. First, shareholders of BTC pipeline and Tengizshevroil agreed on the amount of the tariff for pumping oil through the pipeline.

The tariff became less. The current amount of the tariff is a commercial secret. But the parties reached a compromise as a result of a decrease in the tariff for transit," the source said.

The second reason for resuming the transit of oil through Azerbaijan's territory is that the shareholders of Tengizshevroil adopted a decision to resume the supply of Tengiz oil through the South Caucasus in 2013 due to the problems with Russia's railway, according to the source.

"Strategically, it is always important to have a backup variant. In addition, some four million tons accounts for only 13 percent of the total volume of oil produced at Tengiz. Such volumes by no means can be reflected in the total revenue of Tengizshevroil shareholders," the source said.

The major volume of oil produced at Tengiz field will be transported via the Caspian Pipeline Consortium through Russia's territory, according to the source.

The volume of oil production at Tengiz field amounted to 26 million tons in 2012.

"The third reason is that it is important for us to use the port of Aktau, where the project of expansion is being implemented, the port of Batumi in the Black Sea, as well as the vessels belonging to Kazmortransflot," the source added.

Some four million tons of Kazakh oil will be transported through Azerbaijan in 2014, head of the Investment Department of the Azerbaijani Energy Ministry Ramiz Rzayev said earlier.

To date, over 230 million tons of oil has been transported via the Baku-Tbilisi-Ceyhan export pipeline and around 225 million tons of Azerbaijani oil was sent to world markets through the port of Ceyhan, Rzayev said.

The oil pipeline also played an important role in transporting oil from other Caspian Sea countries. To date, about 8.6 million tons of Turkmen oil has been transported through the pipeline, the article said.

"The interest of Kazakh and Russian companies in this issue is on the increase and the evidence is the adoption of a decision on transportation of around four million tons of Kazakh oil through Azerbaijan in 2014," Rzayev said.

The total length of the pipeline BTC is 1768 kilometres of which 443 kilometres goes through Azerbaijan, 249 kilometres through the territory of Georgia and 1076 through the territory of Turkey. Construction of the pipeline started in April 2003 and began flowing with oil on May 18 2005.

Stockholders of BTC Co established on August 2002 are BP (30.1 percent), AzBTC (25 percent), Chevron (8.9 percent), Statoil (8.71 percent), ТРАО (6.53 percent), Eni (5 percent), Total (five percent), Itochu (3.40 percent), Inpex (2.5 percent), ConocoPhillips (2.50 percent) and ONGC (2.36 percent).

Partners in the project for development of Tengiz field at Tengizchevroil LLP include Chevron - 50 percent; KazMunaiGas - 20 percent; ExxonMobil Kazakhstan Ventures Inc.- 25 percent; and LUKArco - 5 percent.

Iran to send trade attaché to Azerbaijan
Iran to send trade attaché to Azerbaijan
Iran reveals COVID-19 data for April 17
Iran reveals COVID-19 data for April 17
Volume of loaded and unloaded cargo  in Iran’s Charak port climbs
Volume of loaded and unloaded cargo in Iran’s Charak port climbs
Loading Bars
Armenia falsified Caucasian Albania temples in Azerbaijan - rep of religious community
Iran to send trade attaché to Azerbaijan
Weekly review of major events in Azerbaijan's oil & gas sector
Azerbaijan shares footage from Jabrayil's Dash Veysalli village (VIDEO)
Armenia strived to create history for itself in Azerbaijan's lands - Head of Albanian-Udi community
Iran reveals COVID-19 data for April 17
Volume of loaded and unloaded cargo in Iran’s Charak port climbs
Azerbaijani oil prices on rise
VICE News report on Armenia's attack on Azerbaijani Barda nominated for award
Weekly review of main events in ICT sector of Azerbaijan
Earnings from fuel savings in Iran paid to investors
Uzbekistan's CCI, Portuguese Industrial Association establish co-op
Buy/sell operations at Iran Mercantile Exchange soar
Rosatom, Uzbekistan working on contract for building nuclear power plant
Turkmenistan to create electronic exchange database
IMF calls on Georgia to reduce capital expenditures in case of lockdown
Russia reports a new high of 9,321 coronavirus cases since March 20
Azerbaijan's Albanian-Udi Christian community members visit ancient temple in Tugh - Trend TV (PHOTO)
OSCE MG should force Armenia to follow terms of trilateral statement - Azerbaijan's Parliament
Weekly review of Azerbaijani currency market
Azerbaijan, Turkic Council discuss creation of joint digital tools
Weekly review of Azerbaijani precious metals market
EU rep should follow int'l law before meeting with separatist in Karabakh - expert
Potential areas of Turkmenistan’s interaction within Visegrad Group+Central Asia framework identified
Georgia reports 1,219 new coronavirus cases for April 17
Georgia holds auction for privatization of state property
Azerbaijani MP talks about spring session of IPA CIS held in Russia's St. Petersburg
Georgia continues to conduct research on Namakhvani HPP
Iran unveils details exports from Maragheh County
Kazakhstan reveals total number of TEU containers shipped along Aktau-Baku feeder line
There have always been good grape varieties in Pirshaghi – white and black Shani - President Aliyev
Participants of Azercell Student Bursary and Internship Programs share their success stories
Iran boosts aluminum ingots production
Azerbaijani police find mortar shells, detonators left by Armenia in Gubadly (VIDEO)
Iran declares amount of loans issued to SMEs
Kazakhstan's revenues from road cargo transportation down
Concept of ensuring security of Afghan section of TAPI signed
Members of Albanian-Udi Christian religious community of Azerbaijan visit liberated Khojavand (PHOTO)
Australia to continue review of COVID vaccinations - health minister
Italian media outlets highlight speech of Azerbaijani president at int'l conference in Baku
Kazakhstan decreases import of Ukraine-made goods y-o-y
Kazakh national atomic company's subsidiary opens tender to buy compressors
Azerbaijan sets up structure to work on urban planning in liberated lands
Kazakhstan's oil & gas company opens tender to develop consolidated time standards
Meeting of EU special rep with so-called "FM of Karabakh" promotes separatism, says Azerbaijani expert
Iranian currency rates for April 17
Iran to increase vaccinations as fourth wave of COVID-19 rises
Iran reaches target uranium enrichment
Oil demand to keep on rising in May, June 2021
Work on provision of electricity to Azerbaijan's liberated Sugovushan nearing completion
Bulgaria sees Georgia as valuable partner
Significant number of Georgian citizens register for employment program in Israel
Kazakhstan’s COVID-19 caseload up by 2,822
Ukraine receives first batch of Pfizer vaccine under COVAX initiative
IMF corrects estimate on Iran's foreign exchange bank reserves
Azerbaijan attracting foreign investments for renewable energy projects
Uzbekistan to open an embassy in Sweden
Global COVID-19 infection rate approaching highest: WHO
Portugal resumes flights to Brazil, Britain
Turkey reports over 63,000 daily COVID-19 cases
EU eyes to provide grants to Georgian non-profit organizations
Israel reports 41 new COVID-19 cases, 836,740 in total
Biden signs order keeping Trump-era refugee cap at 15,000
EU-UK trade plunges after Brexit: Eurostat
UK records another 2,596 coronavirus cases, 34 deaths
UN Security Council approves ceasefire monitors for Libya
North Macedonia vaccinates some 35,000 citizens
Raul Castro resigning from Cuba’s Communist Party
Azerbaijani IT company working on creating new network, server infrastructures
Georgian Economy Ministry to form expert council on Namakhvani HPP
Relations between Russia, Azerbaijan attain degree of strategic alliance - Federation Council Chair of Russian Federal Assembly
Turkish engineers develop fiber that kills coronavirus in minutes
Uzbekistan’s gold and foreign exchange reserves drop to $32.6 billion
Iran’s petrochemical output to reach $40b: Oil Minister
Relations within CIS IA to make comprehensive partnership ties more profound among member states - Chair of Azerbaijani Parliament (PHOTO)
Azerbaijani gymnasts win set of awards at Trampoline Hopes Cup tournament
Russia to permanently ban entry for eight US officials
Liabilities of Azerbaijan's Kapital Bank increase in 1Q2021
Azerbaijan's Kapital Bank completes 1Q2021 with profit
Azerbaijan’s production of oil and gas condensate down
Big share of Azerbaijan's GDP in Q1 2021 accounts for industrial sector
Azerbaijan announces date of next coupon payments on SOCAR bonds
Uzbekistan, Kyrgyzstan increase trade turnover
Azerbaijani insurance company to increase volume of payouts
Georgia, Turkey have significant prospects for co-op in agriculture, forestry
Georgian 'Mambo Frost' company exports its products to Azerbaijan
Fighter aircraft crashes in Kazakhstan
Russia adds 8,995 COVID-19 cases
Head of EU Delegation to Azerbaijan summoned to Azerbaijani MFA
Georgian budget to save funds thanks to low-interest rate on new Eurobonds
Azerbaijan discloses number of COVID-19 vaccinated citizens
Azerbaijan confirms 2,163 more COVID-19 cases, 2,251 recoveries
Frequency of regular flights between Georgia and Israel increases
Azerbaijani president, first lady sign obituary on famous film director’s death
Georgia not to revise 2021 budget
Volume of cargo exported by Azerbaijan via sea in 2021 disclosed
Raisina dialogue: Indo-Pacific epicentre of strategic competition, says Australia PM
Azerbaijan records sharp increase in cargo movement by air
Remittance inflows from Azerbaijan to Georgia show growth
Decrease in apartment prices in Georgia not expected - analyst
All news