Building a world of
resilient communities.

MAIN LIST

 

Kazakhstan builds oil ties with Iran

Kazakhstan announced on Friday that it planned to build two oil terminals in Iran as it ramps up a lucrative oil-swap export arrangement that has been criticised for lack of transparency.

The terminals, to be built by the Kazmunaigaz and Kaznafta oil companies, will handle 1.5 million tonnes of oil annually on "profitable terms for Kazakhstan," a written statement from Kazakh Prime Minister Danial Akhmetov said.

Kazakhstan plans to ship oil from its vast Caspian Shelf reserves to supply domestic demand in densely populated northern Iran.

Iran will pay for the oil with proceeds from global sales of corresponding amounts from its own fields, which are mostly located in the south, thus saving on transport costs.

Though the system has been criticized for lacking transparency, its volumes have nonetheless steadily increased.

Kazakhstan would eventually like to dramatically increase volumes by building a pipeline through Turkmenistan to Iran, a project it has been studying with the French oil group Total.

But Washington, at odds with Iran's government, has been promoting another pipeline that is currently under construction, the BP-led Baku-Tbilisi-Ceyhan (BTC) pipeline from the western Caspian to Turkey's Mediterranean coast.

Officials at Akhmatov's office and Kazmunaigaz declined to clarify the location in Iran where the terminals are to be built. The Caspian Sea -- and especially Kazakhstan's sector -- is home to some of the world's largest untapped oil reserves. It is estimated that there are up to 33 billion barrels of crude under the seabed, which is twice the size of the reserves in the North Sea.

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.

Tags:  

Peak Oil Review: A Midweek Update 11th Feb

A midweek update. Oil prices continued to fall this week with New York …

Renewables: The Next Fracking?

As a general rule, in fact, the less direct experience a given person has …

IEA in Davos 2016 Warns of Higher Oil Prices in a Few Years’ Time

This recent forum was about how to transition away from fossil fuels, after …

Why the Wild Descent of Oil Is Cause for Concern

The signs of oil's madcap price collapse are everywhere.

It's not Rocket Surgery: Choosing an Indoor Mini Wood stove for a Tiny House

This article will focus on one item which can keep you comfortable in cold …

Peak Oil Review - Feb 8

 A weekly roundup of peak oil news, including: -Oil and the global …

California Offshore Oil Fracking Permits Halted While Federal Government Performs Environmental Review

The U.S. federal government will stop approving offshore oil fracking …