Partnership plan for oil shipments from Kazakhstan and Azerbaijan

Kazakhstan’s Deputy Prime Minister Serik Zhumangarin announced that the two states are considering establishing a joint venture to manage all of Kazakhstan’s crude oil shipments through Azerbaijan.

In trying to divert the oil supply route from Russia to the Caucasus after the war in Ukraine, Kazakhstan is currently shipping the oil it sent from the Baku-Tbilisi-Ceyhan pipeline to Georgia via Azerbaijan via the rail system. Kazakhstan and Azerbaijan are also considering shipments from the Baku-Supsa pipeline.

THE RUSSIA-UKRAINE WAR CAUSED THE SEARCH FOR A NEW ROUTINE

In addition to sanctions on Russian oil exports due to the Russia-Ukraine War, the disruption of the Caspian Pipeline Concern (CPC) line for various reasons 4 times last year led Kazakhstan to new routes and deals in the export path.

Within the framework of the agreement between the Azerbaijan State Oil Company SOCAR and Kazakhstan’s KazMunayGaz company, the transit shipment of oil from Kazakhstan through Azerbaijan via the Baku-Tbilisi-Ceyhan line of oil tankers began in March ( BTC). The agreement provides for the passage of 1.5 million tons of oil per year. (Reuters)