Tengiz-Novorossiisk pipeline to not cause overload of Black-Sea straits

Oct 24, 2001 02:00 AM

The putting in service of the Tengiz-Novorossiisk oil pipeline will not cause an overburden of the Black-Sea straits, according to participants in the Caspian Pipeline Consortium. This is why they expect no manoeuvres on the part of Turkey, Russian deputy energy minister Vladimir Stanev said. According to Stanev, navigation in these straits is regulated by international law which does not impose any restrictions on the passage of tankers.
This confidence is shared by Vice-Chairman of the Chevron Texaco company Richard Matske. He said earlier that the considerable amount of oil to be carried in tankers is intended for customers in the Black Sea region and he expected no problems with the throughput of the Black Sea straits.

According to expert estimates, the Tengiz-Novorossiisk oil pipeline will allow Russia to increase its oil exports by 10 %. The amount accounts for the share of the Russian oil-transport system throughput capacity which is now filled with Kazakh oil in transit via Russia. Once the Kazakhstan-Russian pipeline becomes fully operational, it will ease the load on Russia's own Transneft pipeline which is badly needed by the Russian oil-producing companies to increase their own exports.
Caspian concern sources said the pipeline in question will remain a stable source of income for the participants in the project. Over the next 40 years, Russia's federal and regional budgets will receive $ 20 bn in revenues made up of tax deductions and profits.
At present, oil arrives at the Consortium's Black Sea terminal from the Tengiz oil field in Western Kazakhstan. By the beginning of the year 2002, the terminal will be able to process 28 mm tpy of oil, enough to use up the throughput capacity of the first pipeline. Later, its throughput capacity can be increased to 67 mm tons.

Concern Director General Sergei Gnatchenko thinks that 1 mm tons of Kazakh oil will be pumped into tankers this year. The concern's major stockholders are Russia, Kazakhstan, Chevron Texaco and LUKArco. Eleven private companies from six countries make up the total number of participants in the project.
US Secretary of Commerce Donald Evans said in Moscow that the Caspian Pipeline Consortium is the largest investment project of American companies in Russia and an important landmark in relations between the United States and Russia, as well as in her relations with Kazakhstan. He noted that the concern will help Russia and Central Asia to enter the world oil markets.

Source: Itar-Tass
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