Tengizchevroil joint venture to export Kazakhstan oil to German refiner

The Tengizchevroil joint venture has signed a contract to sell crude oil from Tengiz field in Kazakhstan to German refiner Veba Oel AG starting in July. The oil will be transported through the Caspian Pipeline Consortium pipeline to loading terminals near Novorossiysk on the Black Sea, Chevron Corp. confirmed Wednesday.

May 16, 2001

2 min read

By the OGJ Online Staff

HOUSTON, May 16 -- The Tengizchevroil joint venture has signed a contract to sell crude from Tengiz field in Kazakhstan to German refiner Veba Oel AG, Chevron Corp. confirmed Wednesday.

The deal is to supply Veba with 2 million bbl/month starting in July on a Dated Brent-related basis. The price for each cargo will be determined monthly, 5 days after the bill of lading.

The oil will be transported through the Caspian Pipeline Consortium pipeline, which links Tengiz field with terminals near Novorossiysk, a Russian port on the Black Sea. Initially, the oil will be Tengiz although additional crude from other sources will be added, a Chevron spokeswoman in New York told OGJ Online. The precise crudes involved have yet to be determined, she said.

The CPC terminal is 40 km from Novorossiysk and has storage capacity of 400,000 cu m. Loading capacity is 12,700 cu m/hr. The pipeline is expected to reach capacity of 600,000 b/d by the end of the year.

The pipeline carries oil for export from Caspian Sea fields, including Tengiz field, as well as oil from other Kazakh and Russian fields.

Chevron holds 50% interest in Tengizchevroil. Other stakeholders are Kazakhoil, 20%, ExxonMobil Corp., 25%, and LUKARCO BV, 5%.

Russia owns 24% of CPC, Kazakhstan 19%, and Oman 7%. Also, Chevron Caspian Pipeline Consortium Co. has 15%; LUKARCO BV, 12.5%; Rosneft-Shell Caspian Ventures Ltd., 7.5%; Mobil Caspian Pipeline Co., 7.5%, Agip International (NA) NV, 2%, BG Overseas Holdings Ltd., 2%; Kazakhstan Pipeline Ventures LLC. 1.75%; and Oryx Caspian Pipeline LLC, 1.75%.