Foreign Correspondence

[Amaunet]

Here we go: Russia sees US as promising oil export market

Russia is saying you can have the oil but maybe you better think about helping us get it out. That makes sense.

-Am

“Every year, Russia increases its presence on world markets, and in the first place, it considers the possibility of expanding its oil exports to the US oil market,” Mr. Gref said. He noted that the expansion of oil supplies was limited by transport infrastructure.

“The logical development of transport routes in Russia will be determined by those markets to which we will have access to in the medium term,” the Economy Minister added. For its part, the United States should consider the possibility of developing our transport and seaport infrastructure, and it should also confirm the amount of oil supplies it was ready to accept, Mr. Gref said.

Russia sees US as promising oil export market
September 21, 2004


MOSCOW - Russia sees the United States as a promising oil export market, Russian Economy Minister German Gref said at a Russian-US seminar on oil transportation and oil markets on Tuesday.

“Every year, Russia increases its presence on world markets, and in the first place, it considers the possibility of expanding its oil exports to the US oil market,” Mr. Gref said. He noted that the expansion of oil supplies was limited by transport infrastructure.

“The logical development of transport routes in Russia will be determined by those markets to which we will have access to in the medium term,” the Economy Minister added. For its part, the United States should consider the possibility of developing our transport and seaport infrastructure, and it should also confirm the amount of oil supplies it was ready to accept, Mr. Gref said.

Earlier on Tuesday, US Ambassador in Moscow Alexander Vershbow said the United States hoped for the expansion of the Caspian Pipeline Consortium project, US Ambassador in Moscow Alexander Vershbow said at a congress of the Eurasian Economic Community today. According to him, the United States is making significant investments in the development of the Tengiz oilfield in Kazakhstan and the Caspian Pipeline Consortium. In particular, American companies ChevronTexaco and ExxonMobil are involved in the project.

Mr. Vershbow said the US’s investments in the project exceeded the country’s main investments in the whole region. In view of this, the ambassador stressed, the US hoped that Kazakhstan and Russia would soon agree on the expansion of the Caspian Pipeline Consortium project. In his opinion, this project will help improve relations between the countries.

Caspian Pipeline Consortium, 1,580km long, connects the Tengiz oilfield in Kazakhstan with a sea terminal in Novorossiysk. It was put into operation in 2001, and its design capacity is 21.7m tons a year. 50 percent of the project is controlled by the state: the Federal Property Fund has a 24 percent stake, KazakhOil – 19 percent, and Oman CPC Co. - 7 percent. The other 50 percent is controlled by private companies – the US’s Chevron Caspian Pipeline Consortium Co. (15 percent), Mobil Caspian Pipeline Co. (7.5 percent) and Oryx Caspian Pipeline LLC (1.75 percent), the Russian-American LUKARCO (12.5 percent), the Russian-British Rosneft-Shell Caspian Ventures Ltd. (7.5 percent), Italy’s Agip International (2 percent), Britain’s BG Overseas Holdings Ltd. (2 percent) and Kazakhstan Pipeline Ventures LLC (1.75 percent).

http://www.russiajournal.com/news/cnews-article.shtml?nd=45579