Trans-Caspian Oil Pipeline

Trans-Caspian Oil Pipeline

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The Trans-Caspian Oil Transport System is a proposed project to transport oil through the Caspian Sea
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...

 from Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

i Caspian oilfields to Baku
Baku
Baku , sometimes spelled as Baki or Bakou, is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. It is located on the southern shore of the Absheron Peninsula, which projects into the Caspian Sea. The city consists of two principal...

 in Azerbaijan
Azerbaijan
Azerbaijan , officially the Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to...

 for the further transportation to the Mediterranean
Mediterranean Sea
The Mediterranean Sea is a sea connected to the Atlantic Ocean surrounded by the Mediterranean region and almost completely enclosed by land: on the north by Anatolia and Europe, on the south by North Africa, and on the east by the Levant...

 or Black Sea
Black Sea
The Black Sea is bounded by Europe, Anatolia and the Caucasus and is ultimately connected to the Atlantic Ocean via the Mediterranean and the Aegean seas and various straits. The Bosphorus strait connects it to the Sea of Marmara, and the strait of the Dardanelles connects that sea to the Aegean...

 coast. The main options under consideration are an offshore oil pipeline from Kazakhstan to Azerbaijan, and construction of oil terminals and oil tanker
Oil tanker
An oil tanker, also known as a petroleum tanker, is a merchant ship designed for the bulk transport of oil. There are two basic types of oil tankers: the crude tanker and the product tanker. Crude tankers move large quantities of unrefined crude oil from its point of extraction to refineries...

s fleet. A strong push for the project has been from the partners of the Kashagan oilfield project and in particular Total who has a share in both the field and the BTC pipeline. They have estimated that such a project would cost roughly US$4 billion. The project also faces opposition from Iran and Russia, both alternative avenues for Kazakhstan's oil and gas who would likely object to competing pipelines being built.

History


In 2005, the Government of Kazakhstan adopted plans for creation of a trans-Caspian westbound route for oil export. On 19 June 2006, President of Kazakhstan Nursultan Nazarbayev
Nursultan Nazarbayev
Nursultan Abishuly Nazarbayev has served as the President of Kazakhstan since the nation received its independence in 1991, after the fall of the Soviet Union...

 and President of Azerbaijan Ilham Aliyev
Ilham Aliyev
Ilham Heydar oglu Aliyev is the President of Azerbaijan since 2003. He also functions as the Chairman of the New Azerbaijan Party and the head of the National Olympic Committee...

 signed a framework agreement on the trans-Caspian oil transport system. On 24 January 2007, partners in TengizChevroil
TengizChevroil
Tengizchevroil is a joint venture between Chevron , ExxonMobil , KazMunayGas and LukArco...

 (developer of Tengiz field
Tengiz Field
Tengiz field is an oil and gas field located in northwestern Kazakhstan's low-lying wetlands along the northeast shores of the Caspian Sea...

) and KCO (Kashagan field
Kashagan Field
Kashagan Field is an offshore oil field located in Kazakhstan. The field is situated in the northern part of the Caspian Sea close to the Kazakhstan city of Atyrau. The field was discovered in 2000 and was one of the larger discoveries in that decade, it is estimated that the Kashagan Field has...

 developer)signed a memorandum of understanding to create a trans-Caspian oil transport system. On 2 October 2009, the national oil company of Kazakhstan Kazmunaygas
KazMunayGas
KazMunayGas is the state-owned oil and gas company of Kazakhstan. It was founded in 2002 by merging Kazakhoil and Oil and Gas Transportation.-Subsidiaries:Main subsidiaries of KazMunayGas are:...

 and the State Oil Company of Azerbaijan Republic signed a memorandum of understanding to expand the Caspian Oil Transport System to include Azeri infrastructure and onshore pipelines from Baku to Kulevi oil terminal
Kulevi oil terminal
The Kulevi oil terminal is an oil port on the eastern Black Sea coast in Georgia. The terminal is located in Khobi District, close to the populated area of the village Kulevi, and from the coastal area between rivers Tsiva and Khobistskali.-Construction:...

 in Georgia
Georgia (country)
Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...

.

On 6 October 2009, an agreement on the oil pipeline from Kashagan to Baku was signed by consortium of French companies during the French President Nicolas Sarkozy
Nicolas Sarkozy
Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....

's visit to Kazakhstan.

Oil pipeline


A 700 kilometres (435 mi) long oil will run from Kashagan field
Kashagan Field
Kashagan Field is an offshore oil field located in Kazakhstan. The field is situated in the northern part of the Caspian Sea close to the Kazakhstan city of Atyrau. The field was discovered in 2000 and was one of the larger discoveries in that decade, it is estimated that the Kashagan Field has...

 or Kuryk to Baku. Work for the pipeline is still in the feasibility stage according to an official from the oil company Total
Total S.A.
Total S.A. is a French multinational oil company and one of the six "Supermajor" oil companies in the world.Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and...

.

Shuttle tankers system


The shuttle tankers system envisages an usage of oil tankers to transport oil from Kuryk terminal in Kazakhstan to Sangachal Terminal
Sangachal Terminal
The Sangachal Terminal is an industrial complex consisting of a natural gas processing plant and oil production plant, located on the coast of the Caspian Sea south of Baku, Azerbaijan.-History:...

 in Azerbaijan. The capacity of this system would be 500000 oilbbl/d in the initial stage, rising later up to 1.2 Moilbbl/d.

See also

  • Framework Convention for the Protection of the Marine Environment of the Caspian Sea
    Framework Convention for the Protection of the Marine Environment of the Caspian Sea
    Framework Convention for the Protection of the Marine Environment of the Caspian Sea is a regional convention signed by the official representatives of the five littoral Caspian states: Azerbaijan, Iran, Kazakhstan, Russian Federation and Turkmenistan in Tehran on 4 November 2003...

  • Trans-Caspian Gas Pipeline
    Trans-Caspian Gas Pipeline
    The Trans-Caspian Gas Pipeline is a proposed submarine pipeline between Türkmenbaşy in Turkmenistan, and Baku in Azerbaijan. According to some proposals it will also include a connection between the Tengiz Field in Kazakhstan, and Türkmenbaşy...

  • Kulevi oil terminal
    Kulevi oil terminal
    The Kulevi oil terminal is an oil port on the eastern Black Sea coast in Georgia. The terminal is located in Khobi District, close to the populated area of the village Kulevi, and from the coastal area between rivers Tsiva and Khobistskali.-Construction:...


External links