Kazakh parl. ratifies China oil deal

Kazakhstan™s Parliament has ratified the agreement between the Kazakh and Chinese governments on cooperation during development and exploitation of Kazakhstan-China crude oil pipeline.

The agreement, approved at a plenary meeting in the parliament on Thursday, includes terms and conditions of how to implement the project intended to increase the pipeline™s capacity.

The project™s capital expenditures reach nearly to 126 billion Tenge (USD 840 million).

Speaking about the deal, Kazakhstan Oil and Gas Minister, Uzakbai Karabalin said, “The agreement is mainly aimed at setting a uniform network rate independent of the point of oil’s entry into the Kazakhstan-China pipeline system. The oil supply rate will be approved by the competent state authorities of Kazakhstan and should not exceed the set oil export rate.”

Based on the minister™s remarks, the prices in the crude oil sales contracts will be fixed according to the international oil prices in oil barrel.

“The Chinese partners will be making sure that these prices are attractive for Kazakhstani dispatchers for the whole period of this agreement,” Karabalin added.

“Exploitation and maintenance of all the parts of the Kazakhstan-China pipeline are currently being performed and will be performed by KazTransOil,” the minister noted.

The United States shares 25 percent of investment for oil production in the country as one of the oil-abundant countries in the Caspian region before China with 24 percent.

GHK/HN/MHB

Copyright: Press TV