Kazakhstan, Astana, Dec. 18 / corr. Trend K. Konirova / "Volume of investments necessary to enlarge the Caspian pipeline consortium (CPC) makes up $3bln," Kairgeldi Kabildin, head of Kazakh National company KazMunaygas, said at a news conference in Astana.
Tariff for oil pumping through this pipeline will make up $38 per ton, interest rate was reduced from 12% to 6%, he said. Terms of repayment of debts were also reconsidered. If earlier extractive companies have advantage, presently, there will be parity on repayment among shareholders.
Project of pipeline extension envisages the construction of 10 new pumping stations, including two in Kazakh territory. The main facilities for expansion will be constructed in the territory of Russia. There is mainly oil production of 67mln tones of capacity per year. This oil is from Tengiz and Karachanak fields.
The signing of memorandum in Moscow on CPC capacity extension is good news amid the world financial crisis which demonstrates that oil field remains financially profitable, Kabildin said. Decision made in Moscow is the result of mutual concessions and compromises.
Actuality of the project is very important for Kazakhstan because of resources. Only Tengizshevroil company (operator of Tengiz field development project) will increase oil production from 15mln to 25mln tones per year.
More than 170mln tones of oil (1,500 of tankers) were transported through CPC since it was launched in 2001.
Shareholders having 87.5% in the project (75% is enough) support the extension of pipeline capacity. Only one shareholder-BP didn't sign this memorandum, Kabildin said.
Feasibility study to expand the pipeline has been launched since 2007. The project will be divided into three stages.
Shareholders of CPC are the Russian Federation (represented by Transneft - 24% and CTC Kompanii - 7%); Kazakh Republic (KazMunaygas) - 19%; Chevron Caspian Pipeline Consortium Company - 15%, LUKARCO B.V. - 12.5%, Mobil Caspian Pipeline Company - 7.5%, Rosneft-Shell Caspian Ventures Limited - 7.5%, BG Overseas Holding Limited - 2%, Eni International N.A. N.V. - 2%, Kazakhstan Pipeline Ventures LLC - 1.75% and Oryx Caspian Pipeline LLC - 1.75%.
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