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"The Baku-Ceyhan route has been seen as being
motivated more by political considerations than by
commercial viability. The United States is pushing for
east-to-west transportation routes that bypass both
Russia and Iran." 



U.S. Funds Kazakhstan Study of Oil Pipeline

ALMATY, Jun 11, 2001 -- (Agence France Presse) The
United States awarded Kazakhstan Monday a
346,000-dollar grant to examine ways of exporting the
former Soviet state's crude oil via a U.S.-backed
pipeline to Turkey.

The grant, amounting to 407,000 euros, is for "the
study of technical, economic, ecological aspects
connected to the transportation of Kazakh oil to the
Baku Ceyhan (pipeline route)," KazTransOil vice
president Kairgeldy Kabyldin said.

The grant, from the U.S. Trade and Development Agency,
will fund research into port facilities, port upgrades
and requirements for barges to transport oil across
the Caspian Sea, but will not be concerned with the
laying of pipelines on the sea bed.

"I'm pleased we are moving ahead with realizing the
Aktau part of Aktau-Baku-Tbilsi-Ceyhan," project, said
the new United States special advisor on Caspian
energy issues, Stephen Mann, during a visit to the
region.

"At every stop on this trip I am seeing the type of
cooperation between countries and companies that is
going to make these projects a success. The pipelines
have momentum and the pipelines will be built," he
said.

Kazakhstan President Nursultan Nazarbayev said in
March he wanted to see oil being produced quickly from
the potentially vast Kashagan offshore field in the
west of the country to make use of the U.S.-backed
pipeline which is expected to cost 2.8 billion
dollars.

Kabyldin said preliminary estimates had suggested that
Kazakhstan could ship up to 20 million tons of oil a
year to link up with the 1,700-kilometer (1,060-mile)
route from Azerbaijan to Turkey.

"A final decision of Kazakh participation in this
project will be taken after a study of all technical
and economic data and issues of this project,"
Kabyldin added.

The Baku-Ceyhan route has been seen as being motivated
more by political considerations than by commercial
viability. The United States is pushing for
east-to-west transportation routes that bypass both
Russia and Iran.

But the link has gained increasing momentum and a
BP-led sponsor group said in May that it was moving
into the next major stage of the project - to conduct
a 150-million-dollar detailed engineering study of the
route. ((c) 2001 Agence France Presse) 


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