KAZAKHSTAN-CASPIAN -RUSSIA
WHEN ECONOMY LAGS BEHIND POLICY

A Break-through in the Caspian

Almost a year has already passed since the day of May 13, 2002, when the Presidents of Russia Vladimir Putin and Kazakhstan Nursultan Nazarbayev signed a protocol to the agreement between Russia and Kazakhstan "On Delimitation the Caspian Sea Bed in the Northern Part to Realize the Sovereign Rights for the Seabed Usage of June 6, 1998". The Protocol contains geographical co-ordinates of realizing the modified medium line that delimits the seabed leaving the water column in common use. According to the protocol Kurmangazi field is under the jurisdiction of Kazakhstan, while the Tsentralnoye and Khvalynskoye fields are under Russian jurisdiction, but they are to be developed jointly by Russian and Kazakh partners. As the Russian President said, the document is "a break-through in the Caspian cooperation". After the summit in Ashgabat Russia and Kazakhstan were the first to reach juridical agreement determining the principles of Caspian division, Putin emphasized. The principle of this delimitation, he said, was "bed divided, but water column remains in common use".

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.

CIS IS OUR PRIORITY

We present to you our exclusive interview with V. I. Kalyuzhniy, deputy foreign minister of the Russian Federation and special envoy of the President of the RF for the problems of Caspian Legal Status.

Q: Viktor Ivanovich, how would you assess the current dynamism and tendencies in the process of settling the problem of Caspian Legal Status?

The dynamism of settling the problems of Caspian Status are not unequivocal, there have been some achievements and some "skidding "as well. Though, in general, the positive tendencies seem to dominate. The first Caspian summit that took place in April 2002 was a central political event. Real break - through took place in regulating the international law in the sphere of earth bowels use. After the Russian-Kazakh Protocol was signed in May 2002 in Moscow determining the bed delimitation line of the two countries in the north of the Caspian, an Agreement was signed between the Russian Federation and the Republic of Azerbaijan on September 23, 2002 in Moscow about delimitation the border areas of the Caspian bed. Notable that both of the documents were signed at the top level. If to take into consideration the fact that a similar agreement with Kazakhstan and Azerbaijan was signed in November 2001, we can conclude that interrelations of the said three countries in mastering the mineral resources of the northern and central Caspian bed acquire a firm international legal bases.

OIL OUTPUT IN KAZAKHSTAN KEEPS GROWING

Kazakhstan intends to produce 52 mln tons of oil and condensed gas in 2003, Vladimir Shkolnik, minister for Energy and Mineral Resources reported. He said by 2015 oil production in Kazakhstan would make about 150 mln tons. He also stated that in 2002 Kazakhstan had recovered more than 14 bln c/m of gas and intends to recover 70 bln c/m by 2015.

The State Statistic Agency of Kazakhstan reported that oil and gas exports from the country reached the mark of 39.27 mln tons in 2002. It means, approximately up to 800,000 barrels of oil was exported a day, compared with 650,000 bpd of oil and gas in previous 2001. In 2002 Kazakhsatn exported 1.11 mln tons of oil products. State

Revenues compared with the previous year grew up by 18%. Revenues from the sale of oil products, on the contrary, reduced by 18% and made $119 mln. The State Statistic Agency of Kazakhstan confirmed that the country was planning to increase oil recovery in 2003 by 10%.

HARRINGTON COMMERCIAL ENTERPRISES LTD

About Company: "Harrington Commercial Enterprises Ltd" was created in Great Britain in 1998.

General manager of represent. office: Dzeabayev Arslan Mukhadiyevich

The founders of this company have been delivering technical equipment for oil and gas industries for foreign countries and on the territory of CIS since 1986.

The company "Harrington Commercial Enterprises Ltd" has very good long-term contacts with many manufacturers of the technical equipment in the countries of CIS and foreign countries.

For all period of activity, the company has never received any claim from the partners. Having the close wide contacts with the manufacturers of technical equipment, the company always finds profitable alternative on quality and prices for the purchased production.

The motto of the company - mutually beneficial cooperation with the Partners, strong execution of the contracts and the high quality equipment delivery according to the stipulated terms.

TRANSPORTATION IS A NEW PERSPECTIVE OF KAZAKHSTAN

CASPIAN EXPORTERS LAY THE FOUNDATION OF STRATEGIC ROUTES TO THE COUNTRIES OF ASIAN-PACIFIC REGION AND SOUTH EAST ASIA

After the start-up of the Baku-Tbilisi-Ceyhan (BTC) pipeline constuction in September 2002 and putting into operation the pipeline of the Caspian Pipeline Consortium in 2001, the period of confrontation of the two strategic pipeline routes have gradually passed over to the stage of "peaceful" co-existence of the West and the North. No particular competition jeopardizes them even after the BTC pipeline is put into operation in 2005, as the diverted by Ceyhan export streams of Kazakh oil will be over-compensated by the oil output growth in Kazakhstan. The oil recovered by ENI, Total and Japanese in Kazakhstan, is evidently the first in turn to be pumped at the initial stage of BTC's existence, as they are the shareholders of the BTC Co and active in financing and construction of the BTC.