Transneft and Chevron are discussing cooperation in implementing the Samsun-Ceyhan oil pipeline project, RIA Novosti reports with reference to the corporate magazine of the Russian company.
This issue was discussed in Moscow in February during the visit of a Chevron delegation headed by its new CEO, John Watson. The meeting was held in the offices of pipeline monopoly Transneft, with the Russian side represented by the head of the company, Nikolai Tokarev, Deputy Prime Minister Igor Sechin and Rosneft president Sergei Bogdanchikov.
The Samsun-Ceyhan pipeline project was started in 2007, and the pipeline is planned to come on stream in 2011. The pipeline, intended to transport 60-70 million tons of oil per year, is currently being built by Calik Energy and Eni. In late October, it was decided that Russian companies Rosneft , Transneft and Sovcomflot will also participate in the construction and running of the Samsun-Ceyhan pipeline, as well as in transportation, processing and joint sales of oil products. Energy Minister Sergei Shmatko said that Russia and Turkey had agreed to build a refinery at the terminus of the Samsun-Ceyhan pipeline for joint sales of petroleum products.
During the meeting in Moscow, the sides also discussed the issues of increase in capacity of the Caspian Pipeline Consortium (CPC) pipeline and ways to collaborate in the Burgas-Alexandroupolis project. It is noted that during the negotiations “a number of important agreements were concluded."
The Burgas-Alexandroupolis project brings together Russia, Greece and Bulgaria in building an oil pipeline of just under 300 miles (485 kilometers) to pump oil by land from the Black Sea port of Burgas to Alexandroupolis on the Aegean Sea, with the intention of easing the strain of tanker passage through the Bosporus straits. Russia owns 51% of the consortium for the construction of the Burgas-Alexandroupolis pipeline, with 49% equally divided between Bulgaria and Greece. The Russian share is divided between Transneft, Rosneft and Gazprom Neft. The initial pipeline capacity of 35 million tons could be increased up to 50 million tons. Last year, the partners disagreed with the Bulgarian side, which insists on increasing the environmental efficiency and wants to change the economic model of the project.
The CPC is the largest route for the transportation of oil from the Caspian region to world markets. The main pipeline, with a total length of 1,500 kilometers, connects fields in western Kazakhstan with Russia's Black Sea coast. The CPC shareholders are Russia’s Transneft with 31%, KazMunaiGaz (19%) and Kazakhstan Pipeline Ventures LLC (1.75%), Chevron Caspian Pipeline Consortium Company (15%), LUKARCO BV (12,5%), Mobil Caspian Pipeline Company (7.5%), Rosneft-Shell Caspian Ventures Limited (7.5%), BG Overseas Holding Limited (2%), Eni International HA H.V. S.ar.l. (2%), and Oryx Caspian Pipeline LLC (1.75%).
