AN IMPORTANT EXPORT OPTION FOR KAZAKH CRUDE OIL: DUBENDI TERMINAL OF MIDDLE EAST PETROL


Middle East Petrol's Dubendi Terminal is located on the Caspian Sea shore of Azerbaijan, approximately 50 kilometers northeast from Baku. With its current transshipment capacity of 10 million tons per year, Dubendi terminal acts as a major hub for transit transportation of crude oil and oil products from Caspian Region to world markets.

Trans-Caucasian transportation route though Dubendi terminal has been a strategical and economical outlet for Kazakhstan's huge and increasing crude oil export potential. Tengiz crude oil has been transported along the route since 1996, followed by other Kazakh grades such as Buzachi, Kumkol and some Kazakh origin oil products. Trans-Caucasian Route is an important alternative to other export routes of Kazakhstan through Russia, enabling the oil companies to diversify the exports and benefit from the flexibility provided. As a result of segregated transportation of each cargo; Kazak origin crude oil types can be sold at the world markets with the original quality, creating significant benefit to high-premium grades when compared to other routes.

Middle East Petrol takes the delivery of crude oil and oil products at the Caspian Sea Ports of Kazakhstan and Turkmenistan and transports the cargo for re-delivery to client at the Black Sea Ports of Georgia.

Dubendi Terminal receives the crude oil and oil products transported by tankers from other Caspian Sea Ports. Dubendi Port is a natural sea port located across Pirallahi Island, which acts as a breakwater. Pirallahi Island protects Dubendi Port from frequent strong wind and high waves of the Caspian Sea and this makes Dubendi Terminal a unique location as the receiving point of transit crude oil and oil products. The distant location of Dubendi Terminal to the city center and populated areas brings other advantages in terms of protection of the ecology and operational safety. 4 vessels can discharge their cargoes simultaneously at Dubendi Port. Dubendi Port can receive 12.000 DWT vessels of Caspian Shipping Company, which are currently the biggest tankers in Caspian Sea. Construction of a SPM is projected for discharging bigger tankers up to 30.000 DWT in the future.

The storage capacity at Dubendi Terminal is 150.000 m3 for clean products (Gasoline, diesel, naptha, jet fuel etc.) and 150.000 m3 for black products (crude oil and fuel oil). Clean product tank farm was totally refurbished and put in operation in August 2002 by Middle East Petrol.

Full segregation of different oil products is applied during vessel discharge, storage, train loading and transportation. The quality and the quantity of the crude oil and oil products are monitored at every stage of the operation by first class independent inspectors appointed by the clients.

Parallel to the investments at the Port and storage facilities, the capacity of the Dubendi Rail Loading Facility was doubled by Middle East, by building a clean product loading rack as an extension to the black product rack. 78 rail tank cars can be loaded simultaneously within 2 hours at Dubendi.

Pinpointing lack of rail tank cars necessary for transportation of crude oil and oil products on Trans-Caucasian route, Middle East Petrol signed agreements for the purchase of 1000 rail tank cars. These rail tank cars have steam jacket installed, enabling the transportation of crude oil and oil products with high pour point all around the year.

In addition to the Head Office in Dubai (UAE) and the Operational Center in Baku, Middle East Petrol has operational offices in Ashgabat (Turkmenistan), Tbilisi (Georgia) and Batumi (Georgia).

Middle East Petrol recently signed a long term transportation agreement with major American oil company ChevronTexaco and included Veba Oil (now a part of BP) as well as international trading company Glencore and several regional traders into the client portfolio.

Considering the trends and developments of Caspian Oil Industry, Middle East Petrol prepared plans and projects to utilize Dubendi Terminal as the starting point of Baku - Tbilisi - Ceyhan Pipeline due to its potential for further development and its proximity to Aktau and other potential export Ports of Kazakhstan. In addition to the tanker transportation, Dubendi Terminal is the ideal location to be the termination point of the sub-sea pipeline between Kazakhstan and Azerbaijan considered for the transportation of Kazakh crude oil through Baku -Tbilisi - Ceyhan Pipeline.

President of Middle East Petrol, Mr. Abdolbari Goozal, states that providing first quality service, customer satisfaction, safety and protection of the ecology are their priorities. Middle East Petrol aims to speed up investments in Caspian Region and become one of the key players of Caspian oil industry in the near future.