KazMunaiGas CJSC has made cooperation agreement with Hurricane Hydrocarbons Ltd. on oil pipelines

/IRBIS, October 21, 02/ - Press-service of National company KazMunaiGas CJSC (Astana, hereinafter - NC KazMunaiGas CJSC) distributed today press-release, in which there was information about making by the company with "Hurricane Hydrocarbons Ltd." (hereinafter - Hurricane) of the thorough agreement, which set principles of their future cooperation on oil pipelines. Within the framework of this agreement Hurricane will contribute and support promising plans of NC KazMunaiGas CJSC concerning building of the oil pipeline "Kumkol-Aralsk-Kenkiyak" total extension of which is about 700 km. At this: - The companies assume development of technical-economic grounds; - KazTrabsOil CJSC (subsidiary company of NC KazMunaiGas CJSC), will control and be the project's operator; - Hurriane must supply possessing volumes of export according to the terms of contracts "supply or pay" in order to quicken financing of the project; - Hurricane will assume less participation in the project, if the requirement on project's financing is like this. From one to three years may be necessary for designing, financing and building of the project. Building of the pipeline may also be made by stages, at this the first participant is "Kumkol-Aralsk". Taking into account building of oil pipeline "Kenkiyak-Atyrau" which's extension is 450 km, and which is made at present by NC KazMunaiGas CJSC, completion of building of pipeline "Kumkol-Aralsk-Kenkiyak" will provide with full pipe connection of South-Turgai basin with Atyrau, from where crude oil may be delivered further by the pipeline Atyrau-Samara or by Caspian pipeline consortium ("CPC"), and also to Aktau port. As an alternative the pipeline "Kumkol-Aralsk-Kenkiyak" may be reversed in the future for transportation of west-Kazakhstan oil to south or east markets, giving strategically valuable variants for export of Kazakhstan crude oil. It is also confirmed in the agreement that NC KazMunaiGas CJSC supports building of oil pipeline "Kumkol-Aryskum-Maibulak". Initiated by "Hurricane" this oil pipeline has been divided into two areas. The first one has spread of 104 km from pumping station Aryskum to Dzhusaly will connect fields of Hurricane: Kyzylkiya, Aryskum and Maibulak with the new railway terminal at Dzhusaly station for further supplies by railway to western points. The second area which's spread is 70 km will connect Kumkol oil fields of Hurricane company with Aryskum field. It is expected that in the beginning of full exploitation in the third quarter of 2003 the pipeline "Kumkol - Aryskum - Maibulak" will further earlier development of famous oil fields of "Hurricane" and stimulate further explorations in South-Turgai basin. Shareholding and financing of NC KazMunaiGas CJSC equals to 50% at "Aryskum-Dzhusaly" of the oil pipeline "Kumkol - Aryskum - Maibulak" in accordance with agreements about joint venture with Hurricane. After completion of building of the oil pipeline by the company Hurricane, NC KazMunaiGas CJSC will become technical operator of this pipeline. The companies agreed to stop exploitation of "Aryskum-Dzhusaly" field and oppositely change direction of "Kumkol-Aryskum" and move export volumes on oil pipeline "Kumkol-Aralsk-Kenkiyak" to the moment of completion of building oil pipeline "Kumkol-Aralsk-Kenkiyak". The agreement also confirms long usage of oil pipelines and terminals of Eastern branch of KazTransOil CJSC by oil producing enterprises of Turgai basin for delivery of crude oil to Shymkent PR and other export directions. [2002-10-21]