|
·
CASPIAN
NO LONGER closed:
Since the Soviet Union broke up at the end of 1991, the
new nations of Kazakhstan, Azerbaijan, Turkmenistan and Georgia have
seen oil and gas as providing their best hope of becoming rich. Because of
that and after a decade of hype, diplomacy and drama the first dedicated
pipeline to move oil from the Caspian, the world's last great undeveloped
hydrocarbon reserve, direct to international markets opened on Monday
March 26. As well as potentially transforming the economies of Kazakhstan
and other countries in the region, the line will also have an impact on
global markets, delivering perhaps the largest single slug of new oil to
markets for a quarter of a century.
- About
Kazakhstan Oil Pipeline Network
Kazakhstan possesses significant hydrocarbon reserves. Total oil
reserves are estimated at 5.4 billion barrels, gas reserves at 65 tcf,
and coal reserves at 37.5 billion tons
Kazakhstan is the second largest oil producer among former Soviet
republics after Russia, producing over half a million barrels per day
(bbl/d). Almost half of Kazakh production comes from three large onshore
fields - Tengiz, Uzen, and Karachaganak.Under the former Soviet Union,
Kazakhstan's pipeline network was integrated with the Russian pipeline
system, and all of Kazakhstan's oil was exported through the Russian
pipeline system. Kazakhstan’s pipeline system is consisting of the two
export pipelines in the west, the import pipeline in the east, and a
smaller internal line in the south. Kazakhstan's largest oil export line
is the Western Kazakhstan pipeline system that transports oil from
fields in Atyrau and Mangistau in the northern Caspian region to Russia.
This 1,800-mile pipeline runs from Uzen-Atyrau-Samara, and accounts for
75% of Kazakhstan's oil exports. The other export pipeline is the
Kenkyak-Orsk line that transports oil from western Kazakhstan to Russia.
This pipeline runs from the Aktyubinsk fields to the Orsk refinery in
Russia, and has a capacity of 130,000 bbl/d. Oil is imported via the
Eastern Kazakhstan and Central Asia pipeline system that transports oil
1,268 miles from Russia to southern Kazakhstan Pavlodar refinery.The
other major pipeline transports oil from the Kumkol fields in central
Kazakhstan to the southern Kazakhstan Shymkent refinery. Nearly all of Kazakhstan’s oil is exported west
through Russia, except for a small amount barged across the Caspian to northern
Iran. In
April 1997- to manage Kazakhstan's pipeline network- KazTransOil was
created, with the state owning 100% of its shares. KazTransOil currently
transports about 80% of the oil produced in Kazakhstan, but will face
competition when the CPC (Caspian Pipeline
Consortium) pipeline becomes operational in 2001.
On6April 1993 -- The
Republic of Kazakhstan and Chevron Corporation announced the formation of
their joint venture company, Tengizchevroil (TCO), to develop the Tengiz (with
6-9 billion barrels of estimated oil reserves) and Korolev oil fields on the
northeastern Caspian Sea coast.
This$20 billion joint venture is the
largest such arrangement between the Republic of Kazakhstan and a major
multinational oil company. The pipeline had its groundbreaking in May
1999.
The Tengizchevroil joint venture
produced 190,000 bbl/d in 1999, and production could increase to 340,000
bbl/d by 2002. Given adequate export outlets, the Tengizchevroil joint
venture could reach peak production of 750,000 b/d by 2010. Tengizchevroil
exported about 170,000 bbl/d of crude oil in 1999 through the Russian
pipeline system; by barge and rail to the Baltic; and by ship, pipeline, and
rail to the Black Sea.
While Chevron and other oil companies are investing $20
billion to develop the Tengiz field transportation has been a major problem.
Much of the crude was shipped by train. At last the new plan to ship it along
a 900-mile pipeline to the Russian port of Novorossiysk became operational on
March 26, 2001
·
Current events about new pipeline:
On March 26, 2001 The prime minister of Kazakhstan opened the valve
that sent the first Kazakh oil on its 900-mile (1,500 kilometer) journey to
CPC's marine terminal north of Novorossiysk on the Black Sea from where it can move by tanker anywhere in the world.
Giving the Central Asian producer Storage facilities there are almost ready,
and the port is on schedule to start filling tankers with Kazakh oil this
summer, it is said and estimated that the first tankers to arrive in June or
July. By year-end, the initial
phase of the pipeline will have an export capacity of 28 million tons of oil
per year (approximately 600,000 barrels per day). With upgrades, the ultimate
capacity of the pipeline is 67 million tons of oil per year (1.5 million
barrels of oil per day).
The
pipeline will extend three miles (five kilometers) over the seabed from the
coastline, ending out in the open sea with a floating terminal for pumping
oil into tankers.
·
Benefits
for two sides:
The line is the first stage in
an ambitious program to ship crude oil from the Caspian, the world's largest
undeveloped oil reserve, and which could transform Kazakhstan into one of the
world's major oil exporters over the next decade. As well as potentially
transforming the economies of Kazakhstan and other countries in the region,
the line will also have an impact on global markets, delivering perhaps the
largest single slug of new oil to markets for a quarter of a century and from
the Russian side can point to these advantages: While this move is an important step in tapping the oil
resources of the Caspian, it is also part of the Russian government's
struggle to regain credibility with foreign businesspeople. It will bring Moscow welcome new
transport tariffs (billions of dollars of tax revenue to Russia over the life
of the project) for years to come -- and added political clout in the
strategic region, permanent jobs, a heightened role in world energy markets,
strong private sector partnerships, and increasing flow of oil to world
markets. (It should be noted that Over the life of the projects, the Caspian
Pipeline and the Tengiz field will directly and indirectly add more than $150
billion to the combined gross domestic product in Russia and Kazakhstan. In
addition, the implementation of both the CPC and the Tengiz operations will
sustain, on average, more than 200,000 jobs annually (directly and
indirectly).) . Chevron has estimated
that during its 35-40 year expected life, the pipeline could bring in $8
billion in taxes for Kazakhstan, and development of the Tengiz field and
operation of the pipeline would earn about $150 billion for Kazakhstan and
Russia. With the completion of Phase I of the CPC line in mid-2001 and the
expansion of the Atyrau line, Kazakhstan will have about 1 million bbl/d of
pipeline export capacity.
·
Some
mentioned disadvantages:
Environmental groups in Russia claim that nearly ninety
percent of the people of Novorossiisk and Anapa are opposed to the project.
They know that no project is safe enough to prevent spills that will kill the
land and sea on which they depend. In 1997, a breakdown in the pipeline
system spilled at least 800 tons of oil. The beaches of the Anapa and
Gelendgic resorts were heavily polluted and the clean- up took several
months. Because the oil was spilled into an isolated body of water, the
Cemess bay, it was easier to block and gather. Local environmental groups
speculate that the consequences would be much more catastrophic if a spill
happens on the open sea. The CPC's new pipeline terminal poses exactly that
threat.
Other countries reactions:
Although The United States has struggled
to limit Russia's control over petroleum exports from the Caspian region, but
welcomes the formal completion of construction of the Russian portion of the
Caspian Pipeline Consortium pipeline.
·
The
U.S.A reaction about this new route:
Although
The United States has struggled to limit Russia's control over petroleum
exports from the Caspian region, thought to hold vast oil reserves and
described as a key source of energy for the 21st century during strong
support of baku-ceyhan project but The United States appreciated the
formal completion of construction of the Russian portion of the Caspian Pipeline
Consortium pipeline maybe because of high participants of USA chevron company in the project
·
Pipelines map
Resource:
www.countywatch.com/kazakhstan
http://www.eia.doe.gov/emeu/cabs/caspfull.html
www.oilnews.com
CHEVRON OVERSEAS AND LUKOIL
PRESIDENTS TOUR CASPIAN PIPELINE ROUTE IN RUSSIA
SAN FRANCISCO, June 29, 1998
·
TENGIZCHEVROIL
EMPLOYEES SUSTAIN SAFETY PERFORMANCE AND SET NEW OUTSTANDING RECORD(This
press release was issued by Tengizchevroil on December 22, 1999)
|