Kazakhstan, Astana /corr. Trend K.Anirova / Three partners - 'KazMunayGaz', Turkish Calik Enerji and Indian Oil India decided to increase the capacity of the future oil refinery in the Turkish Port of Ceyhan from 15mln to 20mln t per year, a source from the Kazakhstan company stated. Such a decision was made at the recent talks of the representatives of the three countries in Deli.
All conditions are there in the plant to increase its design capacity. In addition to the construction of the oil refinery itself, the project envisages erecting all port infrastructures. Increasing the capacity will lead to a rise in the project cost, but the cost has not yet been disclosed. Earlier, the variant of the project in 15mln t per year was estimated at $5bln.
The Turkish Company of Calik Enerji, which received a license for constructing the oil refinery, established a daughter company DAPRAS, in which 'KazMunayGaz' and Oil India should acquire their shares to participate in the project. A Memorandum of Understanding between the two countries has already been signed.
Italian ENI which is an operator in the development project of Kazakhstan's Kashagan field also voiced its wish to join the alliance.
As stated earlier, the Government of Turkey received three applications for the construction of the oil refinery in Ceyhan Port. Three groups of companies voiced their wishes to construct the oil refinery. As mentioned above, the first one is 'KazMunayGaz', Turkish Calik Enerji and Indian Oil India, second - Turkish TURCAS and State Oil Company of Azerbaijan (SOCAR) and third - Turkish company of Petroil office and Austrian OMV.
'KazMunayGaz' received proposal to joins the project from second and third groups. The proposals from Petroil office and Austrian OMV were denied. The proposals from the second group, particularly from SOCAR are being considered.
Whilst signing an agreement on strategic oil and gas partnership in Astana this week, the SOCAR President, Rovnak Abdullayev, said that SOCAR has already commenced procedures of constructing an oil refinery in Ceyhan. "We have already begun the project. If 'KazMunayGaz' wishes, we may realize the project jointly," he said.
The Head of 'KazMunayGaz', Uzakbay Karabalin said that this issue has been discussed at length at the level of high-ranking representatives of Kazakhstan and Turkey, and Azerbaijan and Turkey. "We are going to further discuss the project. If we discover the expediency of the project, the agreement will be included with the intention for cooperation on the project," he said.
Earlier, the Minister of Energy and Mineral Resources of Kazakhstan, Baktikoja Izmuhambetov, said that in regards to Ceyhan, it does not need to construct two or three plans in one area. To avoid competition, it is intended to unite the efforts of Turkey, Kazakhstan, and Azerbaijan. "We consider it expedient that the oil refinery is jointly constructed by three countries. Currently talks are being held," the Minister said.
The Government of Turkey considers the construction of an oil refinery in Ceyhan as the 'number one' project. The Head of the Country, Rajab Teyyub Erdogan, promised to provide support to the project by allocating land and devising a legislative base.
The construction of the oil refinery is intended to be completed in 2010. The participants of the project plan to sign a Memorandum of Understanding and agreement of shareholders at the end of August in Astana.