Caspian Projects I
The Caspian problem needs separate consideration, if far no other reason than a number of experts insisting on the leading role that the regional oil resources are playing in international expansion to the southern borders of Russia. One should think, however, that Caspian oil resources are no more than an excuse to be used in the anti-Russian policy alongside the capitals of trans-national companies. Raising the question of Caspian oil transit is curious in itself. Thus, as it was said at the meeting of the Energy Ministers of G-8, that took place in Moscow in the spring of 1998," the choice of the route for the big Caspian pipeline will be based on economic and not political expediency." However, in practice, political expediency prevails, as usual (the economic one will be "adjusted" to it). That's why one can forecast with confidence that the main route of transportation of Azerbaijan oil will finally become Baku - Ceyhan.
Reference materials on oil projects in the Azerbaijan sector of the Caspian Sea are given bellow (according to Interfax-ANI, Finansoviye Izvestia of April 9, 1998).
Azeri, Chirag, Gyuneshli
Cost - 7.5 billion dollars, reserves of the contact zone - 650 million tonnes of hydrocarbons. Participants - Azerbaijan state oil company (GNKAR) (10%), American Amoco (17.13), Unocal (10.05), Pennzoil (4.82), Aramco (2.08) and Exxon (8), the British-Norwegian group British Petroleum (17.13) - Statoil (8.56), Turkish TPAO (6.75), Japanese Itochu (3.92), Russian LUKoil (10) and Saudi Delta (1.68).
Karabakh
Participants - Pennzoil (30%), Russian LUKoil (7.5), Russian-Italian joint venture LukAgip (50), GNKAR (7.5) and Italian Agip (5). Direct investment after detection of commercial reserves of hydrocarbons - 2 billion dollars. Predictable capacities of economically effective reserves - 130 million tonnes.
Shakh-Deniz
According to assessments, reserves of gas - 400 billion cubic metres, of gas condensate - 200 million tonnes, of oil - 100 million tonnes. Participants' shares: English British Petroleum and Norwegian Statoil - 25.5% each, Turkish TPAO - 9%, Russian LUKoil - 10%, French Elf Aquitaine - 10%, GNKAR - 10%, National Iran oil company - 10%. Project cost - 4 billion dollars.
Dan-Uludze and Ashrafi
Total reserves - 150 million tonnes of oil and 30-50 billion cubic metres of gas. The consortium consists of American Amoco (30% in the project) and Unocal (25.5), Saudi Delta (4.5), Japanese Itochu (20), GNKAR (20). Project cost - 1.5 billion dollars.
Lenkoran -Deniz and Talysh-Deniz
Structures' reserves are estimated at 50-80 million tonnes of oil. Investment requirements - 2 billion dollars. Consortium comprises: French Elf Aquitaine (40%) and Total (10), GNKAR (25), German Deminex (10), Italian Agip (5), the national Iranian oil company (10).
Kyapaz
The agreement on principles of production sharing at this oilfield on the Caspian shelf was signed by Russian companies LUKoil, Rosneft, and by GNKAR. Initial allotment of shares - 30, 20 and 50% respectively. Later Rosneft decided to abandon the project. Investments into the development of the oilfield - 1 billion dollars. Reserves of oil - 50 million tonnes. Participants - GNKAR (40), and LUKoil (60). The oilfield borders with the Russian sector of the Caspian Sea. Reserves of oil - 100 million tonnes. LUKoil is covering costs during the exploration period to the amount of 70 million tonnes. There are some other projects as well: with Exxon according to D-3 structure, with Chevron according to the structure by Zeinalabdin Tagiev and with Mobile according to the Oguz and D-30 structures.
Other Projects
Shelf development of the northern part of the Caspian Sea. LUKoil company won the tender. Reserves of oil - 600 million tonnes in the area of 8,000 square km. The results of the tender were disputed by UKOS.
Kazakhstan is holding a number of tenders for licensing units of the Caspian shelf. 18 units will be put up in the first round, at this 14 of them have already been distributed among the participants: Italian Agip, British Shell and British Gas, American Mobile, French Total, British-Norwegian group British Petroleum - Statoil. Total investment into the project - 28 billion dollars. In the Kazakh sector of the Caspian Sea the assumed reserves of oil are 6 - 12 billion tonnes.
Pipelines
Early oil from Azeri, Chirag and Gyuneshli (32 million tonnes during 7 years) will be transported through two pipelines: Baku - Grozny - Novorossisk and Baku - Supsa (through the territory of Georgia) according to the AMOC decision of October 9, 1995. The first pipeline is already operating, the second one is under construction. The matter of transportation of major oil is being decided now in favour of the Baku - Ceyhan route through the territory of Turkey.
The Caspian pipeline consortium (KTK) -1,580-km - will connect the Tengiz oilfield in western Kazakhstan with the new terminal on the Black Sea coast near the city of Novorossisk. Maximum pipeline transmission capacity is 67 million tonnes of oil a year. Completion of the construction was scheduled for the year of 2000. The consortium consists of: American Chevron (15), Mobil (7.5.), Oryx (1.75), Russian-American and Russian-British joint venture LUKArco (12.5), Rosneft-Shell (7.5), Italian Agip (2), British Gas (2) and Kazakh Oil (1.75). The shares of governments-founders of the KTK were divided as following: Russia - 24%, Kazakhstan - 19%, Oman - 7%. Project cost is 1.2 billion dollars.
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