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Transcaspian system initial phase will take 500 000 barrels of oil a day

03 October 2009 10:25 (UTC +04:00)

Baku. Rashad Suleymanov-APA. Kazakhstan’s KazMunaiGas and Azeri state oil firm SOCAR have signed a set of accords on the delivery of extra crude to the Black Sea and beyond.

Under one of the agreement signed during a visit to Baku by Kazakhstan President Nursultan Nazarbayev, the Transcaspian project will include oil terminals, tankers and vessels on the Kazakh and Azeri coasts of the Caspian Sea, and connecting facilities to the Baku-Tbilisi-Ceyhan pipeline.

The agreement shall regulate the mutual rights and obligations of the parties regarding their joint activities in a consortium to perform a feasibility study on the Transcaspian project.

The parties agree to launch a project company for the implementation of the Transcaspian project, said a joint press release.

The second accord, - the memorandum of intent regarding cooperation on Baku-Black Sea oil pipeline defines the basic principles of cooperation to study the feasibility of construction of a new oil pipeline from the Caspian coast near Baku to the Black Sea coast for the transit of Kazakh oil via Azerbaijan, as well as the optimal use of existing oil and gas transportation infrastructure in Azerbaijan.

The other accord- the memorandum on the joint use of oil and gas infrastructure of SOCAR during development of Kazakhstan’s hydrocarbon fields envisages the prospects of procurement of goods, works and services required for the development of Kazakh fields, and provides for the next steps in implementing such cooperation.

At the initial phase, the Transcaspian oil transportation system will take 500 000 barrels of oil a day (23 million tons per annum) with the gradual increase of oil pumping to 750 000 barrels (35 million tons per annum, 1 200 000 barrels a day (56 million tons per annum) in the future.