Kazakhstan looks to ship more oil via Azerbaijan

June 1. News.Az

by Leyla Tagiyeva

Kazakhstan looks to ship more oil via AzerbaijanNews.Az interviews Serik Primbetov, Kazakhstan’s ambassador to Azerbaijan.

What can be expected in Azerbaijani-Kazakh relations in the near future?

A delegation from Mangistau visited on 19-20 May to act on the instructions of our presidents, Ilham Aliyev and Nursultan Nazarbayev. Issues concerning the supply of fruit to the western regions of Kazakhstan, including Mangistau, were sorted out during the visit. Cooperation in education between the agricultural universities was developed and issues related to bilateral ties in other spheres were coordinated.

Naturally, we are concerned at the development of cooperation in the oil and gas industry. Our company, Kazmunaygaz, and Azerbaijan’s state oil company, SOCAR, continue working to create the Caspian-Kazakh pipeline system. Now the transport ministries of Kazakhstan and Azerbaijan are developing an agreement on terms.  A joint venture in this sphere has already been created and these issues are being developed.

Second, we are now working on the further transportation of Kashagan oil; we are talking about an additional 70m tonnes of oil as we are already producing 75m tonnes. This oil is produced in shallow waters, in Kashagan in the waters of the Caspian Sea, and a pipeline from Kashagan to the port of Kurik will be more than 700 km long. From Kurik’s deepwater port this oil will be supplied to the Baku-Tbilisi-Ceyhan, Baku-Supsa, Baku-Novorossiysk and Baku-Black Sea pipelines. Transport by rail is also not ruled out. These are our approximate plans.

The delegation from Mangistau Province met the ministers of culture and tourism, economic development, industry and energy of Azerbaijan. We had fruitful meetings.

What agreements are being prepared between our two countries?

Thirteen documents were signed during the visit of the Kazakh president to Azerbaijan [in autumn 2009] and the execution of these agreements must start now.

When will the intergovernmental commission on Azerbaijan-Kazakhstan economic cooperation next meet?

It will hold its next session next year while the previous session was held in October last year.

How is trade between Azerbaijan and Kazakhstan developing?

The dynamics have recently declined due to the financial crisis but we are now developing it again. The Baku grain terminal has already been created and is functioning. Along with the supply of Kazakh grain there, we have also installed a new Swiss flour-milling facility which is now functioning. Now we will supply not only grain but also Kazakh flour to Azerbaijani markets.

What volumes of supplies do you expect to make?

The volumes of supplies are up to 100,000 tonnes depending on contracts.