LEADING POSITIONS IN THE MARKET OF PIPELINES SERVICES

Since its establishment JSC "KazTransOil" regularly increases the volume of oil transportation due to growth of oil production in the Republic of Kazakhstan. If "KazTransOil" transported 22,9 mln.tons in 1997 then in result of 2004 this figure has already made 38,4 mln.tons.

JSC "KazTransOil" being as a representative operator on registration of Kazakhstan's oil transit supplied for export through oil-trunk pipelines, also fulfills the oil transportation of Kazakhstan's oil companies via Atyrau-Samara pipeline and Makhachkala-Tikhoretsk-Novorossiysk route with registration in accordance to contracts for transport expedition, transit customs and transport papers for supplying of Kazakhstan's oil through CIS territories. In 2005 there was signed 45 contracts with Kazakhstan's oil and gas production companies about services providing for oil transportation, 32 contracts for transport expedition, 14 contracts for supplying of water from the canalization of JSC "KazTransOil", including 10 agreements with foreign oil transport companies and operators of offshore oil-bulk terminals.

During last years due to using of new technologies of oil pumping viz using of counter-whirligig additive we could increase the carrying capacity of Atyrau-Samara oil pipeline from 12,3 to 15 mln.tons/year. So, JSC "KazTransOil" could multiply the volume of oil transportation from 9,4 mln. tons in 1997 to 15 mln.tons in 2004. In 2004 from the stated volume more than a half of exported through Atyrau-Samara, there was supplied the Kazakhstan's oil in the line of the Black Sea port Odessa (more than 7,6 mln.tons), approximately 2,7 mln.tons transported in the line of Baltic port Primorsk and deliveries to Polish port Gdansk made 3,8 mln.tons. For refining at Ukrainian ORP was exported 0,8 mln.tons.

The main export direction for Kazakhstan's oil companies is Aktau port where JSC "KazTransOil" implements the oil transshipment from pipeline and railway transport to tankers. In 2004 JSC "KazTransOil" from Aktau port shipped 7,2 mln.tons in the line of Makhachkala-Novorossiysk, Baku-Batumi and Iran.

As a result that some oil companies having the right for carrying capacity of Tengiz-Novorossiysk oil pipeline of the Caspian Pipeline Consortium (CPC) don't have the direct access to it. JSC "KazTransOil" constructed on its OFS Atyrau the units for oil transshipment to CPC flowing from Uzen-Atyrau, Keniyak-Atyrau, Martishi-Atyrau oil pipelines and by railway. In 2004 the volume of oil transshipment to CPC pipeline through JSC "KazTransOil" system made 4,8 mln.tons.

JSC "KazTransOil" fulfills the transportation and transshipment of oil into railway tanks at bulk-oil platform Shagir, Atasu, Makat, Atyrau from where oil is supplied by railway for export to China, Uzbekistan, Iran, Europe including Aktau port and Atyrau ORP. The volume of pouring into railway tanks made approximately 3,4 mln.tons in 2004.

The volume of oil supplying through KazTransOil system to Kazakhstan's ORP for refining in 2004 made 8,8 mln.tons.

The import of the Russian oil transported by JSC "KazTransOil" via CSC Priirtishsk for further supplying to Pavlodar Petrochemical Plant and GNPS Atasu in 2004 made 3,3 mln.tons.

JSC "KazTransOil" except of oil transportation has also been implementing the supplying by main conduit of the Volga water to enterprises and organizations of Atyrau and Mangistau regions. The volume of water delivery in 2004 made 18 mln. m3.

On July 6, 2004 JSC "KazTransOil" became the founder of new project company "Kazakhstan-China Pipeline" with 50% of share participation. The partner of company in stated joint ventures with 100% was associated company CNPC - China National Corporation for Prospecting and Development of Oil and Gas (CNODC). The given fellowship acts as consumer of construction and further as owner of new export Atasu-Alashankou oil pipeline.

The realization of stated project will permit to use the transit potential of the Republic of Kazakhstan by attraction of the Russian oil for transportation through Atasu-Alashankou oil pipeline and it will the result of increasing of JSC "KazTransOil"'s incumbent unloading processing powers and tariff profit. On July 28, 2004 JSC "NC "KazMunayGaz" fulfilled the selling to KazTansOil of 51% share holding of JSC "North-Western Pipeline Company "MunayTac". At present, the stockholders of JSC North-Western Pipeline Company "MunayTac" are JSC "KazTransOil" and China National Corporation for Prospecting and Development of Oil and Gas with shares of owning equally 51% and 49%. At present time, there is transported on the base of long-term the oil of Kazakhstan's companies of Aktubi region via main oil pipeline "Kenkiyak-Atyrau" with extension 449 km. and carrying capacity 6 mln.tons/year. Oil transshipment to JSC "NWPC "MunayTac" in 2004 made more than 5,4 mln. tons.