Kazakhstan Likely to Deliver over 55mln Tons of Oil a Year via Azerbaijan: Kazakh Minister
Kazakhstan, Astana / corr Trend K.Konirova / Baktikozha Izmuhambetov, the Minister for Energy and Mineral Resources of Kazakhstan and also the Co-Chair of the Azerbaijani-Kazakh Commission on Economic Cooperation, stated that Azerbaijan and Kazakhstan have no disagreement in political and economic spheres.
" Azerbaijan and Kazakhstan are the countries, situated and operating in the Caspian Sea. We should integrate our capacities: drilling rigs, equipment, and transport means taking into consideration the ecological issues," he added.
The Baku-Tbilisi-Ceyhan (BTC) opens a new way for Kazakh hydrocarbons to enter the world market.
"We have serious contacts in agriculture. A train terminal has been built in Baku," Izmuhambetov stressed.
Kazakhstan invested tremendously in the neighboring countries from Azerbaijan to Georgia and purchased the Batumi oil terminal there.
"Oil delivery there is linked with Azerbaijan, which is the major transit country," he explained.
Touching on the prospects of Kazakhstan's joining to the BTC, the Minister said that to ensure Kazakh oil transportation from the Kashagan and Tengiz field to the BTC it is planned to establish the Eskenw-Kuryk oil pipeline, oil merging terminal in Kurik Port, tankers and vessels, oil cargo terminals in the Azerbaijani coast of the Caspian Sea, and connecting construction to the pipeline system.
The next step in the establishment of the TransCaspian system will be the conclusion of agreements between the Governments of Kazakhstan and Azerbaijan and investors," he emphasized.
In June 2006, Kazakhstan and Azerbaijan finalized an agreement on assisting and supporting oil transportation from Kazakhstan via Azerbaijan to the international markets through the BTC.
In the future, under the Kazakhstan Caspian Transportation System (KCTS), plans are to provide for the transportation of 23.3mln t of Kazakh oil a year at the initial stage, with further expansion to 35-56mln t a year.
"The commissioning of the KCTS facilities is scheduled by the commencement of oil production from Kashagan field," he said.
In June, Baku hosted a meeting with representatives from SOCAR, the delegation of KazMunayGas, and representatives from contractor companies in the Production Sharing Agreement on North Caspian and Tengiz group. The meeting discussed the implementation of the Trans-Caspian System.
The parties agreed upon intensifying talks over establishing the Trans-Caspian System within the framework of a working group with the participation of representatives from Kazakh oil transporters and Azerbaijan.