Complete News World

Kazakhstan is preparing to distribute oil to Azerbaijan instead of Russia - Oil

Kazakhstan is preparing to distribute oil to Azerbaijan instead of Russia – Oil

The international oil market may see a new readjustment of the black gold tracks. Kazakhstan is preparing to export its oil via Azerbaijan’s largest pipeline, in order to circumvent Russia’s threat to close the Novorossiysk port on the Black Sea.

After a Russian court threatened to cut off the oil route through which Kazakhstan exports black gold to the world, Astana is preparing to ship its crude from Azerbaijan’s largest pipeline as early as September, according to sources close to the case, citing Reuters.

For almost two decades, Kazakh oil, which represents 1% of the world’s oil supply, was transported via the CPC (Caspian Pipeline Consortium) pipeline, which was bound for the Russian port of Novorossiysk, on the Black Sea, from which crude oil was shipped. to the rest of the world.

However, in July, a Russian court threatened to shut down the CPC pipeline to Kazakhstan, prompting the Astana government and foreign companies operating in the country’s oil sector to make contact with other potential partners, in order to ensure this, if Russia ceases to act as a leader. A bridge between Kazakh oil and the world, there may be other transportation options.

Thus, one of the sources confirmed to Reuters that the Kazmunaigaz Oil Company (KMG) is negotiating with an Azerbaijani counterpart, for the export of 1.5 million tons of oil annually through the Azerbaijani pipeline, which transports raw materials to the port of Ceyhan. , turkey. The contract must be signed in August, and oil will start flowing through this route in September.

See also  Euribor rates rise on key maturities, approaching 4% in 12 months - Executive Digest

However, these agreements may not be enough to ensure that the world gets the same number of barrels of oil from Kazakhstan as it did before the possible Russian cut.

According to the British agency’s calculations, this partnership will ensure the flow of 30,000 barrels of oil per day to the countries that buy Kazakh black gold, a very small amount compared to the 1.4 million barrels per day that is currently transported.

In addition, two other sources have submitted that Astana is negotiating so that, as of next year, another 3.5 million tons of crude oil will be exported annually, via another pipeline to the port of Supsa, in the Black Sea region, from Georgia. KMG, contacted by Reuters, declined to comment.

Kazakhstan can make a difference in an uncertain future

More than ensuring its economic vitality, by seeking to sign these agreements, Kazakhstan can ensure that the imbalance between supply and demand for oil in the international market does not aggravate.

According to the International Energy Agency, published today, Thursday, oil consumption is expected to rise to 2.1 million barrels per day this year, an increase of 300,000 barrels compared to previous expectations.