Kazakhstan plans to create Turkmenistan-Iran pipe-line consortium

06.12.00 00:00
/IRBIS, Dec.6, 00/ - REUTERS informed that Kazakhstan intends to create international consortium over construction of Kazakhstan-Turkmenistan-Iran pipeline. The government currently holds negotiation with number of foreign companies over technical and economical assessment of the project. The Ministry of Foreign Affairs reported today that the project could provide economically favourable access to Persian Gulf structures for oil producers operating in Kazakhstan, mainly from Caspian Sea. Kazakhstan that recently announced about discovery of 7 bln tons oil field on the northern shelf of the sea is interested in alternative routes for oil export. Earlier this week, the Prime Minister of Kazakhstan had a meeting with special adviser of US State Department, Steven Sestanovich. They discussed prospects of Kazakhstan participation in Aktau-Baku-Jeikhan pipeline. The representative of the State Department informed that USA would support Kazakhstan in development of transport facilities of Aktau seaport and whole Western region of Kazakhstan. Today government announced that Kaztransoil holds talks with TotalFinaElf, Agip, British Gas, and Kazakhoil over preparation of technical and economical assessment for Kazakhstan-Turkmenistan-Iran. The main issues under discussion are structure of the project, shares distribution, transport capacity and financial obligations. The main condition of Kazakhstan is 50% stake in consortium for countries participators at 100% financing by international companies. During the negotiations companies offered to gradually render shares of three countries (Kazakhstan, Turkmenistan, Iran): 21% after signing of the agreement and 29% after reaching of reasonable rate of return on investments. TotalFinaElf, French oil company that supports Kazakhstan-Turkmenistan- Iran pipeline project plans to become main drilling operator of OKIOC consortium on the northern part of Caspian Sea. The representatives of the company claimed that discovery of Kashagan oil field was one of the major event in the oil world for last thirty years. He also noted that it would be biggest adventure of the twenty first century. It was reported that the company has all production and financial facilities to become major drilling operator. Other candidates for the project are ExxonMobil and Shell. The Kashagan field could become the biggest oil reserve in the world. The evaluation drilling did not yet give exact estimates, whereas Kazakhstan government already announced the preliminary figure of 7 bln tons. The government reported that preliminary voting will be held in mid December, while final selection in January of 2001. That time, OKIOC participants would select from two candidates that took major part of votes in December. The company should collect 70% of votes to become the operator. TotalFinaElf still insists that the Southern direction of oil transporting is most profitable. At present, TotalFinaElf has about $1 bln in Kazakhstan.