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Foreign companies boost their Kashagan activities

Author: Kulpash Konyrova in Astana
27 October 2008 - Issue : 805


No event in Kazakhstan’s oil industry remains without due attention and reaction from foreign partners. As soon as the negotiations between the Kazakh government and the AGIP KCO shareholders more or less defined the future of Kashagan, a sizeable growth of activity has become noticeable in Astana, and the foreign guests have frequented their visits there. The details of the agreement signed by the consortium and the government have remained unknown to the public. Reportedly, a new jointly-operated company will operate the Kashagan project. Shell’s Kazakhstan office has provided an officially approved version of the document that says that “October 2013 should be the latest date for Kashagan commercial production to commence.
At the same time every effort will be made to achieve Kashagan commercial production before October 2013.” The newly-found compromise and the determination of the parties to give to the world, at last,” the “first Kashagan oil” in an agreed time, have boosted the activities of the other companies involved in this project. For example, the State Oil National Company of Azerbaijan (SOCAR) has recently opened an office in Astana. As the head of the office, Vurgun Jafarov, told New Europe in an interview the management of the Azeri company had made a decision to spur the work on the agreement on the Kazakhstan-Caspian Transportation System (KCTS).
Kazakhstan will use this system to deliver its crude to the world markets by the Caspian Sea and further through the Caucasus by the Baku-Tbilisi-Ceyhan pipeline or by the Baku-Supsa pipeline. “Another purpose for opening a representative office in Astana was to stop the endless flying of the working group between the two capitals and to expeditiously resolve any arising issues,” Jafarov said. The British government, too, has become more active in Kazakhstan.
The British foreign office plans to implement offices in three Caspian countries, including Kazakhstan, Azerbaijan and Turkmenistan, a project pertaining to the legal aspects of sea shipments of crude. “In a near future, large volumes of crude are expected to be moved by sea from the Caspian region. And Great Britain is prepared to share its expertise and experience that have been accumulated over many years,” an analyst from the Oil Spill Training Company Ltd., John Ostergaard, told New Europe in an interview. He emphasised that he meant an introduction of the international standards that had been earlier accepted by the countries. Administration of these norms and standards will ensure safety of transportation, environment and the vessels in the Caspian Sea, he said he believes.



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