Kazakstan hopes to boost its crude exports and is considering new transit routes, including a pipeline through Iran, Kazakh Prime Minister Kasymzhomart Tokayev said on January 28th.
Tokayev said that: “I would like to make it very clear that Kazakstan is interested in diversified export possibilities, oil pipelines.”
He indicated that a pipeline from the massive Tengiz oil field in western Kazakstan to the Russian Black Sea port of Novorossiisk was a current priority. The pipeline, built by the Caspian Pipeline Consortium (CPC), is expected to be operational by mid-2001.
Tokayev said that: “This pipeline is obviously a priority for Kazakstan since it is viable and will allow us to increase oil exports to 25 million tones [a year] and therefore to increase oil production in the country.”
The prime minister said that other export options were under consideration, including a southern pipeline to Iran and a western one to Turkey’s Mediterranean coast through Azerbaijan and Georgia.
He said that the shorter southern route would be more economic and that international oil executives were interested in the project.
Tokayev expressed doubts about the Turkish route, which had been favored by the former Clinton administration.
He said that: “The cost of the project raises very big doubts even among the American companies, since the cost – according to the most modest estimates – is $4.5 billion.”
Kazakstan hopes to raise crude production to 37-40 million tonnes (745,000 to 800,000 b/d) in 2001 from 30.6 million tones in 2000.
An international consortium is exploring the giant offshore Kashagan field, which could be the world’s largest discovery in 30 years.
One of the consortium members, France’s TotalFinaElf, is conducting a feasibility study of the pipeline from Kazakstan to Iran.
© 2001 Mena Report (www.menareport.com)
