OREANDA-NEWS. January 22, 2009. In December 2008 Kazakh oil transportation via Baku-Tbilisi-Ceyhan (BTC) kept increasing.

Azerbaijan State Statistical Committee informed for October-December Kazakh oil transportation via BTC pipeline totaled 285,100 tons.

“Taking into account exported volume in October (17,400 tons) and November (119,300 tons) that in December 2008 Kazakh oil transportation reached 148,400 tons” it was informed.

At the same time for 2008 BTC exported 17.9% of all the cargo transportations in Azerbaijan (183 million tons). In 2008 the pipeline transported 32.8 million tons of oil (+15.3% compared to 2007).

On November 14, the State Oil Company of Azerbaijan (SOCAR) and Kazakh national company KazMunayGaz signed an agreement on key principles of Trans-Caspian Project.

The Agreement defines main conditions and principles of joint realization of the project, creation of JV on the project between SOCAR and KazMunayGas, issues of financing, tariff forming, conditions of access to created facilities and gradual development of Trans-Caspian oil export system. The agreement is the first practical move stipulating creation of concrete system with definition of conditions of supplies, tariffs and other matters.

The agreement envisaged foundation of a JV to undertake the project feasibility study, construction and operation. Original cost of the project is around USD 3 bn. The project will consist of some components – creation of infrastructure in Kazakhstan, Trans-Caspian segment to be financed jointly with Azerbaijan, and creation of infrastructure in Azerbaijan. For financing the Kazakh consignors will provide guaranteed volumes of oil under which we will raise borrowing finances.

Successful realization of Trans-Caspian Project will allow creation of realiable system of long-term tanker transportation through oil terminals in Kazakhstan and Azerbaijan and its following export with use of Baku-Tbilisi-Ceyhan (BTC) pipeline and other oil transport infrastructure.

At primary stage this system will ensure a possibility of transportation of 500,000 bpd of oil (23 million tons a year) with following increase up to 750,000-1.2 million bpd (35-56 million a year).