With OPEC’s meeting approaching and…
Oil prices rose on Thursday…
The Caspian Pipeline—which runs from the giant Tengiz oil field in Kazakhstan to a sea terminal near Novorossiysk in Russia—plans to increase its exports to the world markets to 65 million tons this year from 44.28 million tons last year, Nikolay Gorban, director general of the Caspian Pipeline Consortium (CPC), said on Friday.
The export plan for this year, based on nominations submitted by shippers, will add more oil to the global market at the time when OPEC is trying to restrict production in bid to reduce oversupply and prop up oil prices.
The planned increase in oil exports via CPC is 47 percent, and this year’s exports of 65 million tons equal 1.3 million barrels per day, according to Reuters.
CPC’s Gorban was speaking to reporters at the launch of two new pumping stations along the Caspian Pipeline route that will raise the pipeline’s capacity by up to 10 million tons annually. Another three pumping stations will be put into operation by the end of this year, lifting the pipeline capacity to 67 million tons per year, Gorban noted.
Last year, CPC’s revenue grew by 7 percent annually to US$1.6 billion, due to higher oil transportation volumes. Profit jumped 18 percent to come in at US$237 million in 2016, Gorban said.
Related: 3 Reasons Natural Gas Is Heading A Lot Higher
Referring to the 2017 oil exports plan, the manager said that the Kashagan field in Kazakhstan will account for 11 million tons out of the 65-million oil exports this year, compared to 803,362 tons the field contributed in 2016.
The joint venture operating Kashagan, North Caspian Operating Company, said in January this year that it was ramping up production at the field to a capacity of 180,000 bpd, following the resumption of output in September last year.
CPC’s top three shareholders are Russia with 31 percent, Kazakhstan with a 20.75-percent interest, and Chevron Caspian Pipeline Consortium Company with 15 percent.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…