KazMunaiGas and Batumi Oil Terminal have entered into a joint venture to provide export of Kazakhstan oil by the Black Sea
KazMunaiGas - national oil-and-gas company of Kazakhstan - and Batumi Oil Terminal have entered into a new joint venture called Batumi Terminals to provide export of Kazakhstan oil by the Black Sea. According to RZhD-Partner referring to Intefax, this information has been provided by the PR Department of Kazakhstan company. Corresponding agreement was concluded in the course the visit of Uzakbai Karabalin, President of KazMunaiGas, to Tbilisi. From the Kazakhstan side, the joint venture has been incorporated by KazTransOil, oil transport subsidiary of KazMunaiGas. This strategic union is very important for Batumi, since it is to ensure stable supply of oil by transit corridor with simultaneous support of over 20 thou of Georgian workers operating the route, the press release reports referring to Yan Bonde Nilsen, chairman of Batumi Oil Terminal. According to him, Batumi Oil Terminal ensures over 60% of railway income in Georgia. “Decrease of volume (oil transportation via terminal - IF) could entail disastrous effect for both Batumi and Gergian Railway”, - terminal’s chairman noted. This partnership is very important for KazTransOil as well, since it enables Kazakhstan to participate in transport decisions ensuring direct access of Kazakhstan oil companies to the Black Sea, he underlined.
“The terminal’s head reported, that volume of oil and oil products supplied from Kazakhstan, Azerbaijan and Turkmenia to Batumi Oil Terminal have increased by almost four-fold from 1999, and this year the volume is to reach a record level of 12 million tons”. At the same time he expressed his regret as regards steady decrease of Azerbaijan oil coming to Georgia transport corridor to be caused by commissioning of Baku-Tbilisi-Ceuhan (BTC). “We have for some time been looking for a strong partner possessing powerful resource base in order to ensure our stable growth. Kazakhstan, Azerbaijan and Turkmenia are large oil countries but Kazakhstan is the only country producing oil enough to support both BTC project and Batumi Terminal”, the terminal’s head reported. According to him, annual production of oil in Turkmenia is not exceed 16 million tons in the coming ten years, Azerbaijan is to produce considerable volume of oil - over 60 million tons annually, but major share of this volume is to be over at BTC line. As for Kazakhstan, its oil production will reach 170 million tons by 2015 – growth of over 100 million tons, so it has real potential for Batumi, he underlined.
“The terminal’s head reported, that volume of oil and oil products supplied from Kazakhstan, Azerbaijan and Turkmenia to Batumi Oil Terminal have increased by almost four-fold from 1999, and this year the volume is to reach a record level of 12 million tons”. At the same time he expressed his regret as regards steady decrease of Azerbaijan oil coming to Georgia transport corridor to be caused by commissioning of Baku-Tbilisi-Ceuhan (BTC). “We have for some time been looking for a strong partner possessing powerful resource base in order to ensure our stable growth. Kazakhstan, Azerbaijan and Turkmenia are large oil countries but Kazakhstan is the only country producing oil enough to support both BTC project and Batumi Terminal”, the terminal’s head reported. According to him, annual production of oil in Turkmenia is not exceed 16 million tons in the coming ten years, Azerbaijan is to produce considerable volume of oil - over 60 million tons annually, but major share of this volume is to be over at BTC line. As for Kazakhstan, its oil production will reach 170 million tons by 2015 – growth of over 100 million tons, so it has real potential for Batumi, he underlined.