NEW COMPANY TO OPERATE AKTAU-BAKU SYSTEM

A separate company will be founded to operate Aktau-Baku system; four companies: Eni, TotalFinaElf, ConocoPhilips and Inpex involved in development of Kazakh field ‘Kashagan’ with 15 percent share in BTC are expected to invest in the project, announced Managing Director of Closed Stock Company ‘KazMunaiGaz’ Kairgeldi Kabildin.

At the same time, he said they had received offers from 2 –3 more foreign oil companies operating in Kazakhstan, who show interest in joining BTC pipeline’. According to Kairgeldi Kabildin, following signing intergovernmental agreement, Aktau-Baku system’s investors and governments of Azerbaijan and Kazakhstan will sign transit agreements.

Creation of the Baku-Aktau system implies construction of a new terminal for oil storage and trans-shipment in Kurik (port 76 km south-east Aktau), and junction lines. Trans-shipment capacity will be 20 mln tons of oil per year. Investments volume will be fixed after intergovernmental agreement is signed. Construction of the new system will be finished by the end of 2006 when first oil is produced from “Kashagan” field.