KazTransOil national oil and gas company is not abandoning its plans for investing in the Batumi port and oil terminal.
"The Batumi oil terminal and Batumi sea port is operating according to the investment program that entails a further increase of transshipment capacity and modernization of the facilities in line with KazTransOil standards. The company plans to meet production performance goals set for Georgian assets in 2008 and maintain transshipment capacity of the Batumi terminal at 9.2 ml tons," the company told Interfax Kazakhstan.
"KazTransOil bases its investment decisions primarily on strategic targets of Kazakhstan oil transportation, which involves an efficient use of Georgia's transit potential," according to the statement.
This year the terminal was projected to haul 8 ml tons of oil and oil products, however, the logistics problems, specifically the damage made to Georgia's rail way infrastructure in August by military actions, has hold back the operation. Stability in Georgia if restored will also bring the rail transportation back to the previous level, according to the press release.
KazTransOil is 100%-owner of the Batimu oil terminal and an exclusive manager of the state share in the Batumi port for 49 years. The company acquired the assets in February 2008. The acquisitions were made to diversify oil transportation routes for Kazakh oil and provide a direct access to the world markets.
Meanwhile, some Kazakhstan investors keep pulling back from Georgian projects.
KazTransOil, a natural monopolist on the market of oil transportation through pipelines, operates in the republic oil pipelines 5,215 km long and water pipelines 2,175.2 km long. The total capacity of the company's tank farm is 1,306,400 cubic meters.