KazTransOil increased oil transportation in 2001, expects decline in 2002

/IRBIS, Feb 20, 02/ - REUTERS informs that pipeline company of Kazakhstan, KazTransOil increased oil transportation in 2001 by 15% against previous year, though expects decrease in both production and financial figures resulted in the loss of monopoly status following the introduction of Tengiz-Novorossiisk oil pipeline in 2001. According to the general director of the company, Abai Sadykov, oil transportation increased to 32.02m in 2001 from 27.77m a year ago as a result of adding new tanker routes on the Caspian Sea to Iran and Russian Makhachkala. Oil exports of KazTransOil through Russian Transneft system reached about 23m tons in 2001. He said that last year the company had been able to achieve big results in oil transportation and improvement of technical condition of the system and settling matters on oil transits through Russia. It was mentioned that oil transportation and water supply increase affected proceeds from tariffs, increasing it by 27% against last year, at KZT35.15bn ($230m). He added that introduction of alternative pipeline to Novorossiisk by Caspian Pipeline Consortium (CPC) last year could affect the transportation and proceeds of the company. CPC is cheaper and it is the main reason for the decrease, he explained. From second quarter of 2002 KazTransOil is said to cut oil transportation tariffs to make them competitive with those of CPC, though no exact figures were given. They will depend on the loading of CPC, the companies that choose CPC or the company's pipelines, he added. CPC is said to have a projected capacity of 28m tons of oil a year at the first stage and connected big Tengiz field in north-west of Kazakhstan with Russian port in Black Sea. Russia, Kazakhstan and Oman have stakes in this project and several companies led by ChevronTexaco that has 50% in Tengiz field development. NEW OIL PIPELINES For this year KazTransOil, which is the part of Transportation of Oil and Gas state holding along with KazTransGas, is said to have plans to construct oil pipelines in Kazakhstan and increase oil production and become major player on oil market. The company plans to construct 450 km Kenkyak-Atyrau branch that will connect fields in north-western Aktobe region with Atyrau where both CPC and Atyrau-Samara export route of KazTransOil starts. The company issued $150m eurobonds last year to implement this project, is said. It is also planned that the company will build a 700 km pipeline from Kumkol to Kenkyak, and now it is talking with oil companies about guaranteed volumes of oil transportation for this project. Still another project is the 46 km pipeline from Alibekmola field to Kenkyak which is to be implemented this year. He did not give exact funding figures for these projects, though it was mentioned that the company had no intentions of borrowing funds neither on domestic market nor on international markets as last year's eurobond floatation and company's own funds are sufficient. Last year the company spent KZT3.87 bn to repair fixed assets and KZT10.51 bn to capital investments. It was mentioned that the company with "BB-" rating from Fitch, which is a little lower than the country's rating, can borrow necessary amount on external markets.