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Tengizchevroil inks deal on resuming oil transportation via BTC

29 October 2013 16:58 (UTC+04:00)
Tengizchevroil inks deal on resuming oil transportation via BTC

By Aynur Jafarova

The Tengizchevroil Consortium, which engaged in developing Kazakhstan's Tengiz and Korolev oil fields, signed an agreement to resume oil transportation through the Baku-Tbilisi-Ceyhan (BTC) pipeline, Deputy General Manager for Government Affairs and Public Relations said on October 29.

"Tengizchevroil Consortium (TCO) confirms that it has signed a contract with Cross Caspian Oil and Gas Logistics for crude oil transportation services and a BTC transportation agreement," David McInnis told Baku-based Trend news agency.

Oil transportation through the BTC pipeline came to a stop in 2008.

McInnis said that this agreement further diversifies TCO's transportation options in support of its efforts to optimize crude oil export capacity and costs so as to best meet its customers' needs.

Cross Caspian Oil and Gas Logistics is a joint venture between Azerbaijan's state energy company SOCAR and local rail forwarder AzTransRail.

Earlier, TCO CEO Tim Miller said that the company seeks alternative routes to export its oil.

According to its diversification policy, TCO intends to resume oil supplies to Asian markets, he said.

The total length of the BТС pipeline, which carries crude oil from the Azeri-Chirag-Gunashli oil fields in the Caspian Sea to the Turkish Mediterranean coast, is 1,768 kilometers, with 443 kilometer running through Azerbaijan, 249 kilometer through Georgia, and 1,076 kilometers through Turkey.

The Tengiz oil field was discovered in 1979 and is one of the deepest and largest oil fields in the world. The reserves of the Tengiz field are estimated to contain 750 million to 1.1 billion tons (6-9 billion barrels) of recoverable oil.

TCO is a Kazakh-American joint venture involved in the exploration, development, production and marketing of crude oil and related products. The company is the largest oil producer in Kazakhstan, founded on April 6, 1993 by the Kazakh president and the Chevron Company.

TCO shareholders are Chevron (50 percent), KazMunaiGas (20 percent), ExxonMobil (25 percent) and LukArco (5 percent).

TCO currently supplies oil all around the world mainly via the Caspian Pipeline Consortium (CPC) system. Its marketing policy is based on three important points: oil transportation safety, reliability of terminals and refineries that receive Tengiz's oil, and export diversification.

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