Kazakhstan suggests mixing Kashagan and Russian oil

July 24. Tengrinews

Kazakhstan suggests mixing Kashagan and Russian oilKazakhstan has suggested Russian company TransNeft to consider transporting oil from Kashagan field at the Caspian Sea self via Atyrau-Samara pipeline, Nefttrans.ru writes.

The idea is to mix Kashagan oil with light Siberian oil and pump it to Novorossiysk port for export. The Siberian oil is close to the one from Kashagan by its characteristics. The parties are now discussing how to preserve the oil quality when it gets into the Russian oil transportation system.

Meanwhile, Kashagan’s operator North Caspian Operating Company (NCOC) is considering various options of exporting oil from the field, including the Caspian Pipeline Consortium’s (CPC) route, Atyrau-Samara-Novorossiisk oil pipeline, Atyrau-Taman railroad and railroad-sea route of Atyrau-Aktau-Baku-Batumi.

TransNeft earlier expressed interest in increasing Atyrau-Samara pipeline’s capacity to 5 million tons of oil per year to optimize the pipeline system. “We are interested in this project. That’s why a whole range of activities were held in 2009: feasibility study, a presentation in Kazakhstan. This interest is driven by the need to arrange for an optimal load of the TransNeft’s system,” deputy Vice-President of TransNeft Igor Katsal said in October 2012. He noted that TransNeft was ready to guarantee to Kazakhstan that the oil quality would not degrade as a result of the transportation.

According to the latest information, commercial production at the giant Kashagan oilfield is going to start as early as in October this year. The newly appointed Kazakhstan Oil and Gas Minister Uzakbai Karabalin checked on Kashagan field development and declared that the project was 98% complete.

The consortium developing the field includes Eni, Shell, ExxonMobil, Total and KazMunaiGaz (all with a 16.81% stake) as well as ConocoPhillips (8.4%) and Japan’s Inpex (7.56%). The project is managed by a joint operator North Caspian Operating Company B.V.

http://en.tengrinews.kz/industry_infrastructure/Kazakhstan-suggests-mixing-Kashagan-and-Russian-oil-21157/

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