Kazakhstan to sign an agreement with Azerbaijan on oil transportation

Oil&Gas Materials 3 December 2005 12:07 (UTC +04:00)

Kazakhstan and Azerbaijan develops an agreement on assistance and support in transportation of Kazakh oil through the territory of Azerbaijan, which is planned to be sign soon, Trend reports referring to Kazinform.

“The agreement is basis for construction of transportation infrastructure and organizing of transportation Kazakh oil via the Baku-Tbilisi-Ceihan pipeline,” Musabay Isayev, the head of the Oil Industry Division of the Energy and Mineral Resources Ministry, said to a Kazakh-Russian-Chinese oil forum held in Beijing, Kazinform reports.

Besides, the project on construction of the Kazakh-Turkmenistan-Iran oil pipeline is under consideration. Some international companies set to development of the feasibility study of the project on Turkmenistan and Iran.

Isayev also stressed that existing oil and gas transportation infrastructure was not enough for Asian oil producers. All pipelines of Russia, Kazakhstan and Central Asia were directed to Europe due to increasing demand of the European countries. However, Asian market begins to develop intensively and has dominating part in the world. Therefore, Kazakhstan and Chine completes construction of the Atasu-Alashankou oil pipeline, which will be commissioned by mid-2205.

The feasibility study on the 1,000km Kenkiyak-Kumkol section is under development. The sides hold negotiations and unify financing of the project.

Isayev voiced hope that the Chinese National Oil and Gas Company will successfully complete necessary negotiations and the sides will found fund for the construction of the pipeline by beginning of oil production from the Kashagan.