Prospects of development of pipeline infrastructure of KazTransOil JSC for growth of oil export from Kazakhstan - press-release

/KazTransOil JSC, October 4, 05/ - One of the most important factors influencing upon realization of plans on considerable increase of production volumes in Kazakhstan is timely and adequate expansion of export capacities of oil transportation infrastructure. In compliance with the State program of development of Kazakhstan sector of Caspian sea it's planned to improve oil transportation routs by development of the existing export routs. In accordance with this in the nearest future growth of oil transportation volumes by Atyrau-Samara pipeline is expected. At present KazTransOil JSC makes reconstruction of the trunk oil pipeline with increase of pipe diameter to 730 * 1020 mm. Pipeline operators of Russia, Ukraine and Byelorussia are interested in increase of volumes of Kazakhstan raw stuff transit. In order to increase attractiveness of transit capacities of Atyrau-Samara pipeline the company carries out a joint work with Russian partners on development of oil quality bank. The question about equal tariff policy with respect to Russian and Kazakhstan oil producing companies giving oil to Uzen - Atyrau - Samara is discussed on various levels, including governmental. Such negotiations are also held with Ukraine. Today KazTransOil JSC is interested in growth of pipeline oil supplies to Czechia, Poland and Germany, and also in access to such directions as Butinge port and Drizhba - Adriya system. The state program presumes that having achieved oil output volume of 140 m. tons per year, also from Kazakhstan sector of Caspian sea - 64 m. tons per year, by year 2012 building of a new export pipeline will be required. In accordance with this following oil transportation directions are examined: Project of Atasu - Alashankou oil pipeline building Bringing Kazakhstan oil to China and further to Asian-Pacific region countries is one of promising export directions. Agreement about major principles of building Atasu - Alashankou oil pipeline was signed on May 17 of 2004 by heads of NC KazMunayGas JSC and Chinese national petroleum corporation CNPC. Building-assembling works were started in 2004. Total length of Atasu - Alashankou is 962 km, diameter is 813 mm. Carrying capacity on the first stage is to be 10 m tons per year and will be increased afterwards to 20 m. tons per year. Setting the pipeline in exploitation will let use Kazakhstan's transit potential by attracting Russia's oil for transportation by the existing oil pipeline Omsk - Pavlodar - Atasu and further by being built oil pipeline Atasu - Alashankou, it will increase load of the acting production capacities and KazTransOIl's tariff income. The start point of the new pipeline is at Atasu, whjich belongs to KazTransOil JSC, oil will go to Atasu through Omsk - Pavlodar - Atasu pipeline system and Kumkol - Karakoin - Atasu of East branch of KazTransOil. After setting in exploitation, raw stuff of Russia and the group of Kumkol fields of Kazakhstan will be transported through the pipeline. Kashagan oil export In order to provide transportation of Caspian oil the project on building a pipeline on the area Atyrau (Iskene) - Uzen - Kuryk and building of a sea bulk-oil terminal in Kuryk port is examined. It's planned that track of the planned pipeline will lay in the same technical corridor with the acting oil pipeline Uzen - Atyrau, that will let optimize capital expenses for building. Capacity of the oil pipeline will be determined in accordance with the plan of development of oil extraction from Kashagan field. Successfulness of the plans realization in a great degree depends on the effectiveness of international cooperation in oil transit sphere. KazTransOil JSC will play an active role in processes of export transportation directions expansion. [2005-10-04]