Kazakhstan Caspian Transportation System

Trans-Caspian system will consist of oil-discharge terminals on Kazakhstan coast of the Caspian Sea, tankers and vessels, oil-discharge terminals on Azerbaijan coast of the Caspian Sea and connecting facilities to the oil pipeline system “Baku-Tbilisi-Ceyhan”. Phased expansion of the system is provided to achieve the maximum throughput capacity up to 56 million tons per year. The system capacity on the initial stages will be developed in accordance with the needs of shippers. This parameter can be changed in accordance with the adjusted plan of development of Kashagan field.

Using large tanker tonnage, 60 tons, is provided for Trans-Caspian transportations.

In its turn, arrangement of transportation from the port of Kuryk by large tankers entails creation of an entirely new transport system, where the overload ratings (the volume of storage capacity discharge/liquid pumps, use of single mooring points) will be maximally adapted to smooth functioning of the transport line.

“Eskene-Kuryk” Pipeline

This pipeline is designed to connect an oil treatment plant (in Atyrau region) located in Eskene for oil coming from the field “Kashagan”, with the port of Kuryk, where it is planned to build a new oil terminal for tankers of large deadweight, 60 thousand tons.

At that, it is assumed that the planned route of the pipeline will mostly take place in one technical corridor with the existing pipeline “Uzen - Atyrau – Samara”, that will optimize the capital cost of construction.

In addition to Kashagan oil, the volumes of which will form the basis for the capacity utilization of the new pipe, this route will be used by other oil companies.

Phased expansion of the system is provided to achieve maximum efficient rate of the pipeline up to 56 million tons per year. System capacity on the initial stages will be developed in accordance with the needs of shippers. This parameter can be changed in accordance with the adjusted plan of development of Kashagan field.

Simultaneously with execution of this project, under provisions of the agreement between Kazakhstan and Azerbaijan, signed by the Heads of State in June, 2006, to support and facilitate transportation of oil from Kazakhstan across the Caspian Sea and Azerbaijan to international markets through “Baku-Tbilisi-Ceyhan Oil Pipeline”, actions on creation of Trans-Caspian oil transport system will be taken, including creation of a large-tanker fleet, as well as appropriate reception facilities in Azerbaijan up to connection to the pipeline “Baku-Tbilisi-Ceyhan Oil Pipeline”.

Above all, creation of a transportation system in terms of global energy policies give a possibility to Kazakhstan oil companies to take advantage of a new delivery direction, that is especially important, providing the access to the deepwater port of Ceyhan, bypassing the Turkish straits of Bosporus and the Dardanelles.

This prospect, in its turn, opens up a cost-effective access to remote oil markets such as America and Southeast Asia. In this direction, oil, first of all, is planned to deliver from Kashagan field, as well as other fields of the Caspian shelf and western Kazakhstan. From the port of Kuryk oil can also be delivered in other directions, including Baku-Batumi and Iran.

According to KCTS system oil is planned to transport to the port of Baku and then on export pipelines of the Republic of Azerbaijan.