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27

Transneft Ruined Kazmunaigaz's Hopes

Transneft has withdrawn its signature from documents on the technical confirming the possibility of transporting Kazakh oil

Russia's pipeline monopoly Transneft president Semen Vainshtok announced yesterday that the company has withdrawn its signature from documents on the technical confirming the possibility of transporting Kazakh oil to Lithuania, signed between Transneft and Kaztransoil company, a subsidiary of Kazmunaigaz, Kommersant daily reported.

That move seriously damages Kazmunaigaz?s chances of buying the Lithuanian Mazeikiu nafta.
Vainshtok, speaking in Turkey, said that that step was necessary because of the failure of the Kazakhs to make amendments to the intergovernmental agreement Russian and Kazakhstan that were necessary to begin oil transit.

The documents in question simply stated that Transneft would not hinder Kazakhstan's transit of oil to Lithuania, provided the proper amendments were made to agreements, and Kazakhstan planned to increase its transit volume to Lithuania to first 7 million tons, then 12 million tons, per year.

At present, Kazakhstan transports 16 million tons of oil through Russian annually. An addition 12 million tons for Mazeikiu nafta would enable the Kazakh company to meet the Lithuanian company's needs in full.