Plans to lay a crude oil pipeline from Kazakhstan to the Black Sea continue to advance.
Oryx Energy Co., Dallas, disclosed last week that it and other participants in the Caspian Pipeline Consortium (CPC) signed an agreement to lay a 940-mile pipeline to move oil from supergiant Tengiz oil field in western Kazakhstan to the Black Sea port of Novorossiisk.
Meanwhile, Union Texas Petroleum Holdings Inc., Houston, operator for a new Kazakhstan venture with partner Oman Oil Co. Ltd., recently agreed to explore two onshore blocks north of Tengiz field and in the Kazakh sector of the Caspian Sea (see related story, p. 88).
Agreement details
Oryx, acquiring a 1.75% equity interest in the pipeline, said it will be entitled to 55,000 b/d of the initial capacity in the pipeline.Other CPC interests are Russia 24%, Kazakhstan 19%, Oman 7%, Chevron Corp. 15%, Lukarco joint venture 12.5%, Rosneft-Shell 7.5%, Mobil Corp. 7.5%, BG plc 2%, Agip SpA 2%, and Kazakhstan Pipeline Ventures 1.75%.
BG unit BG Exploration & Production Ltd. only recently acquired its 2% interest in CPC. Its 60,000 b/d share of throughput capacity will cover export of condensate from Kazakhstan's Karachaganak field. The pipeline interest is viewed as a spur for development of supergiant Karachaganak gas/condensate field, which has been stalled (OGJ, July 13, 1992, p. 24).
Amoco Corp. recently signed a $150 million accord to pay for Kazakhstan's 19% stake in constructing the $2 billion pipeline in return for rights to ship 60,000 b/d when the pipeline is operational (OGJ, Mar. 17, 1997, p. 44).
According to Oryx, initial construction of the pipeline should be completed by 1999. The pipeline will have an initial capacity of about 560,000 b/d. Estimated cost of the initial phase is about $2.2 billion.
Subsequent construction is planned to increase throughput to about 1.34 million b/d. Planned expansions totaling an estimated $2 billion are expected to be finished in 2010 (OGJ, Dec. 16, 1996, p. 22).
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