Volume 3, issue #23 - 28-09-1998

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CPC-pipeline project endangered

July 30, 1998 A group of experts working on a feasibility study for the construction of the Caspian pipeline have published a report causing sensation. The costs of the "project of the century" would be much higher than earlier expected; going towards the $ 3.7 bn and not $ 2.1 bn.
The Caspian Pipeline Consortium appeared in 1992 to construct and maintain an export oil pipeline from the Tengiz fields in Kazakhstan to the Russian Novorossiisk port. Russian shares 24 % in the concern.
A conciliation commission was organised to tune the demands of the contractors with the possibilities of the consortium members. A compromise should be found.
Kazakhstan Prime Minister Nyrlan Balgimbaev said the new project costs, $ 3.7 bn, is an unreal figure. If Kazakhstan or some other big consortium member does not agree with the results of commission work, the project will no longer go on.