Ukraine, Kazakhstan agree to increase Kazakh Oil Transit

    The Presidents of Ukraine and Kazakhstan, Viktor Yanukovich and Nursultan Nazarbayev, have reached an agreement on increasing the volume of pumping of Kazakh oil through the Ukrainian territory.
    “We agreed that we will increase the volume of Kazakh oil transit via Ukraine by 8 million tonnes. And a certain part of this volume may be transferred to Ukrainian oil refineries. We are preparing a separate agreement for this,” the Ukrainian leader said at a joint press conference with the president of Kazakhstan on Tuesday.
    Nazarbayev noted for his part that the bans on the oil transportation have been lifted. “We have agreed on increasing the volume of oil transportation and also natural gas in the future, as well as on the participation of Ukrainian companies in the prospecting of natural gas fields in Kazakhstan. The ministries and departments are engaged in the concrete work,” Nazarbayev said. Kazakhstan stopped shipping oil through Ukraine in January this year because of a dispute over transit prices.
    Full development of its major oilfields could make Kazakhstan one of the world’s top five oil producers in the next decade, according to the US Energy Information Administration. With production of 1.43 million barrels per day (bbl/d) in 2008, Kazakhstan is already a major producer, and planned further development of its giant Tengiz and Karachaganak fields is expected to add 1.5 million bbl/d by 2014. Kazakhstan’s sector of the Caspian Sea is believed to hold several other major oil and natural gas deposits as yet unexploited, including the giant Kashagan oil field, according to Itar-Tass.