ID :
36467
Fri, 12/19/2008 - 11:48
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Shortlink :
https://www.oananews.org//node/36467
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CPC shareholders ink expansion of pipeline
Moscow, 19 December 2008, (Khabar) - In Moscow, shareholders of the Caspian Pipeline Consortium have reached an agreement on the expansion of the pipeline capacity to 67 million tonnes per year with a relating statement made by the President of the National KazMunaiGaz Company, Kairgeldy Kabyldin speaking at a media briefing in Astana. Currently, the transit capacity of the project is 33 million tonnes of oil annually. It was also announced that the British Petroleum share in the project will be bought out which will allow KazMunaiGaz to increase their transit share in the Consortium.
Kairgeldy Kabyldin, President, KazMunaiGaz National Company:
- We consider this deal is a good message in conditions of financial crisis when oil sector still remains attractive. The project supposes 3 billions of investments to expand passing capacity.
The enlargement of the pipeline capacity from 33 up to 67 million tonnes of oil per year will be implemented gradually. The final decision on the implementation of the project will be taken at the end of next year. Kazakhstan is also expected to use the major share of the pipeline’s capacity in the background of the planned oil extraction increase. As a result, the Republic’s transit share will see an increase to 50 million tonnes of oil per year. The Caspian Pipeline Consortium also supported KazMunaiGaz’s idea of purchasing British Petroleum’s share in the project. According to Kairgeldy Kabyldin the 250 million US dollar deal will allow an expansion of Kazakhstan’s transit rights within the consortium.
Kairgeldy Kabyldin, President, KazMunaiGaz National Company:
- It is important for us to obtain transit through the Russian Federation. When we buy the British Petroleum share we will get some extra transit capacity of 10.5 million tonnes. The Oman share costing much more would give us only a 1.5 million increase.
Participants in the Caspian Pipeline Consortium are to finance the project expansion using their own capital. It is also expected that the volume of investment might reach three billion US dollars while transit tariffs will remain at the level of
Kairgeldy Kabyldin, President, KazMunaiGaz National Company:
- We consider this deal is a good message in conditions of financial crisis when oil sector still remains attractive. The project supposes 3 billions of investments to expand passing capacity.
The enlargement of the pipeline capacity from 33 up to 67 million tonnes of oil per year will be implemented gradually. The final decision on the implementation of the project will be taken at the end of next year. Kazakhstan is also expected to use the major share of the pipeline’s capacity in the background of the planned oil extraction increase. As a result, the Republic’s transit share will see an increase to 50 million tonnes of oil per year. The Caspian Pipeline Consortium also supported KazMunaiGaz’s idea of purchasing British Petroleum’s share in the project. According to Kairgeldy Kabyldin the 250 million US dollar deal will allow an expansion of Kazakhstan’s transit rights within the consortium.
Kairgeldy Kabyldin, President, KazMunaiGaz National Company:
- It is important for us to obtain transit through the Russian Federation. When we buy the British Petroleum share we will get some extra transit capacity of 10.5 million tonnes. The Oman share costing much more would give us only a 1.5 million increase.
Participants in the Caspian Pipeline Consortium are to finance the project expansion using their own capital. It is also expected that the volume of investment might reach three billion US dollars while transit tariffs will remain at the level of
