Chairman of the Board of JSC NC KazMunayGas Magzum Mirzagaliyev, during a working visit to Baku, proposed that the State Oil Company of Azerbaijan SOCAR consider joint projects in the field of geological exploration. In addition, Mr Mirzagaliyev visited the BP Sangachal and Azertrans terminals, which are involved in the transit of Kazakh oil.
According to some media outlets, Mr Mirzaliev assured that the Improved Model Contract (IMC) mechanism would create “the best possible conditions” for future joint projects.
For reference: The Improved Model Contract (IMC) helps attract funding for the development of complex projects that are not in demand from potential investors due to their capital intensity and lack of up-to-date geological data. The attractiveness of projects increases thanks to the preferences provided.
During his visit to the Azertrans terminal, Mr Mirzagaliyev familiarised himself with the operation of the ‘Astana’ tanker, owned by Kazmortransflot LLP. The ‘Astana’ operates on the Aktau – Baku route and transports Tengiz oil as part of the signed agreement between KazMunayGas and SOCAR.
The project to expand oil production at the Tengiz field from 12 million to 39 million tonnes is promised to be launched in 2025.
Last year, Kazakhstan increased the volume of oil exports via the Baku-Tbilisi-Ceyhan (BTC) pipeline to 1.392 million tonnes per year. The BTC allows Kazakh oil to be pumped to the West, bypassing Russia and, accordingly, provides Western countries with an alternative to Russian crude.
Recall, earlier it became known that Kazakhstan joined the implementation of the OPEC+ group agreements with the intention to extend voluntary oil production cuts by 82,000 bpd.