CONTINUING NEGOTIATIONS ON KAZAKHSTANI PARTICIPATION IN BTC
As he noted, the next round of negotiations between the Azerbaijani and Kazakhstani working groups on issues of Kazakhstani participation in the BTC (Baku-Tbilisi-Ceyhan) oil pipeline construction project will take place in two months. The main target of the negotiations is to prepare a draft intergovernmental agreement between Azerbaijan and Kazakhstan on the transportation of Kazakhstani oil via Baku-Tbilisi-Ceyhan pipeline.
As soon as an agreement on this draft is reached on the level of working groups headed by Kairgeldy Kabyldin, managing director of "KazMunaiGas" NC" CJSC, (RK) and Natiq Aliyev, president of the SOCAR, the document will be submitted to the governments of the two countries for consideration. When this agreement is inked, transit agreements will be signed between the investors of Aktau-Baku system and governments of Azerbaijan and Kazakhstan as well.
Mr. Aliyev early informed that the intergovernmental agreement between Azerbaijan and Kazakhstan on Kazakhstani oil transportation via BTC pipeline "has been prepared and can be sign in the nearest future".
To create the Aktau-Baku system the construction of new terminal for storage and transfer of oil and of junction lines is suggested in Kuryk (a port 76 km South East of Aktau). The capacity of the transferring system will be 20 million tons of oil per annum, up to 7.5 million tons will be transported during the first phase. The volume of investments will be defined when the intergovernmental agreement is inked. The new system will be built by the moment when the first oil from Kashagan field comes.
A separate company will be created to manage Aktau-Baku system, whose main investors will be four companies - ENI, TotalFinaElf, ConocoPhilips and Inpex, participating in the development of Kazakhstani field Kashagan and owning 15% share participation in the BTC Co (operator for the pipeline construction and operations).
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