NC KazMunaiGas CJSC about building of oil pipeline "Kenkiyak - Atyrau"

/IRBIS, August 23, 02/ - NC KazMunaiGas CJSC distributed press-release today, in which it is said that at present works on building of oil pipeline "Kenkiyak - Atyrau" have been activated, welding of pipes is being made at all the six areas of the whole route, mobilization of human recourses and building equipment has been finished. At the moment about 1,000 representatives of the contractor StroyTransGas OJSC (Russia) and subcontractor organization - KazStroyService OJSC (Kazakhstan), 180 units of special technics have been enabled. Oil pipeline "Kenkiyak-Atyrau" will provide with access to oil from Aktyubinsk fields to export mains of Atyrau - Samara and КТК, for transportation through the port Aktau. Total length of the pipeline is 448 km. Cost of the building is USD160m. On October 3 of 2001 thyere was signed framework agreement between NC Transport of oil and gas CJSC (NC TOG) and Chinese national oil company International in Kazakhstan LLP regarding the pipeline "Kenkiyak-Atyrau". According to this document in December of 2001 there was created Project company North-Western pipeline company "Munaitas" CJSC, in which 51% of the market share belonged to NC TOG CJSC and 49% - to Chinese national oil corporation "International in Kazakhstan" (daughter company of "СNPC"). Share of NC TOG CJSC in this project passed on to NC KazMunaiGas CJSC. Capacity of the first turn of the pipeline "Kenkiyak-Atyrau" is to equal to 6m tons of oil a year. Later on pumping volume will be increased up to 12-15m tons a year. In order to provide loading of the future pipeline and guarantee of paying back investments, which were given before, the work with oil producing enterprises of the region on making of long-term agreements about transportation by the pipeline Kenkiyak-Atyrau of minimal guarantying oil volumes is being carried out. Agreement about transportation with Kazakhoil-Aktobe LLP has been made already. Negotiations about similar agreement with CNPC- Aktobemunaigas OJSC for increasing of minimal guarantying volumes from 3 up to 6 million a year starting since 2005 have been finished. [2002-08-23]