1 T = ~7,75 barrel -------------------------- 18 Dec 2003 19:23 CORRECTED - Upbeat Kazakhs say swapped 1 mln T crude via Iran
In ALMATY story headlined "Upbeat Kazakhs say swapped 1 mln T crude via Iran" please read in the fifth paragraph "Last year, Iran's and Kazakhstan's state oil and gas firms reached a final deal on exports of one million tonnes of Kazakh crude..." instead of "on exports of one million barrels of Kazakh crude".
A corrected repetition follows.
ALMATY, Dec 18 (Reuters) - Kazakhstan's state oil and gas firm KazMunaiGaz (KMG) said on Thursday it had sent the first one million tonnes of Kazakh crude to Iran by sea and vowed to double "oil swap" shipments to the Caspian neighbour in 2004.
Kazakhstan, a huge mineral-rich Central Asian nation of 15 million, aspires to join the world's superleague of oil producers by boosting domestic output to at least 150 million tonnes (3.0 million barrels per day) in 2015 from this year's expected 52 million tonnes (1.04 million bpd).
To achieve this, the land-locked nation needs to develop multiple export routes for its hydrocarbon riches.
"On December 18, the tanker Mamedov loaded with Kazakh oil left the (Kazakh) port of Aktau, bound for Iran's port of Neka," KMG said in a statement.
Last year, Iran's and Kazakhstan's state oil and gas firms reached a final deal on exports of one million tonnes of Kazakh crude to Iran's Caspian port of Neka by the end of 2003.
Under the agreement, Kazakh crude is compensated by an equivalent volume of Iranian oil made available in the Gulf.
"Having implemented this agreement, KazMunaiGaz joins the ranks of leading crude suppliers to Iran," KMG said. "The Iranian route today means direct access to sea ports and, therefore, (Iran's) refineries bypassing intermediaries."
"Next year KazMunaiGaz intends to double the volume of crude shipped to Iran."
KMG said the oil it would obtain in the Gulf would allow it to target new markets in Southeast Asia. It said one potential route, backed personally by President Nursultan Nazarbayev, was to the Philippines via Singapore.
Iran plans to complete this year a 300-km (186-mile) pipeline from Neka to Tehran refinery allowing it to triple its intake of Caspian crudes to 150,000 bpd and compensate producers with its own oil in the Gulf.
This can be upped to 350,000 bpd if extra pumping stations are added.
Iran has also renovated Neka's port and storage facilities to accommodate large tankers and more crude and this year ordered six 60,000-tonne oil tankers from Russia for $240 million to be delivered in the Caspian by 2005.
Until this year, smaller Kazakh and Turkmen producers have been the main swappers, but Russian producers, faced with surging output and limited export capacity, have also started to actively use the Iranian option this year. ((Reporting by Dmitry Solovyov, Almaty Newsroom, +7 3272 508500 email@example.com))
Iran swaps would be a hot thing for PKZ. They can save a lot of buggsis on PKZ�s biggest calculation position the "transport costs". As Tracer said, 2004 the swaps should start. The contracts are signed already.
This way might be even the cheapest way for China exports. It might be cheaper to ship from Persian Gulf the oil on sea to East China�s (+Indias!) boom regions, than to ship the oil by the new planed Kaz-Sino pipeline.
But for strategic reasons, I stay firm for the Kaz-Sino pipe.
China is the coming Super Power. They do not like to depend too much on oil shipments by sea. One US aircraft carrier positioned in the "Street of Malakka" would be enough, to cut China�s oil imports by nearly 100 %.
China is not planing from one political vote to the next. They have a larger horizon.
Of course both ways (China pipe + Iran swaps) at the same time would be the Super solution to PKZ`s transport + market strategy !