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Transneft, KazMunayGas discuss oil transit cooperation

The companies emphasized the importance of strategic cooperation and continuation of comprehensive interaction in the area of energy transportation

MOSCOW, July 24. /TASS/. The management of Transneft and Kazakhstan's KazMunayGas have held a working meeting focused on cooperation in the area of oil transit via the Russian company’s system and the areas of activities within the Caspian Pipeline Consortium (CPC), Transneft said in a statement on Monday.

The meeting took place on July 24. Transneft was represented by chief executive Nikolay Tokarev, as well as vice presidents Vladimir Kalanda and Sergey Andronov, the company’s spokesman Igor Dyomin told TASS. KazMunayGas was represented at the meeting by chairman Magzum Mirzagaliyev and deputy chairman on oil transportation Bulat Zakirov.

"Relevant issues of cooperation in the area of oil transit via Transneft’s system, as well as the current cooperation and promising areas of activities of the Russian and Kazakh governmental shareholders within the Caspian Pipeline Consortium (CPC), were considered during the meeting. The participants of the meeting noted CPC’s geopolitical meaning for ensuring secure export of Kazakh commodities," Transneft said.

The companies also emphasized the importance of strategic cooperation and continuation of comprehensive interaction in the area of energy transportation. Mirzagaliyev stressed the importance of existing agreements regarding supplies of Kazakh energy resources via the Druzhba oil pipeline, KazMunayGas said.

CPC is the pipeline system connecting Kazakhstan with a seaport in Novorossiysk area, where tankers are loaded with oil for the supply to global markets. The 1,511 km long pipeline links oilfields in the West Kazakhstan with the marine terminal in Novorossiysk. CPC Marine Terminal is equipped with three single point moorings that allow loading tankers safely at a significant distance offshore, also amid poor weather conditions.

CPC shareholders are the Federal Agency for State Property Management represented by Transneft (trustee) - 24%, CPC Company - 7%, KazMunayGas - 19%; Kazakhstan Pipeline Ventures LLC - 1.75%, Chevron Caspian Pipeline Consortium Company - 15%, Lukarco B.V. - 12.5%, Mobil Caspian Pipeline Company - 7.5%, Rosneft-Shell Caspian Ventures Limited - 7.5%, BG Overseas Holding Limited - 2%, Eni International N.A. N.V. - 2%, and Oryx Caspian Pipeline LLC - 1%.

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