KazMunayGas, SOCAR sign agreement on increase in transit volumes

On March 11 in Baku, Azerbaijan, Kazakhstan’s KazMunayGas JSC (KMG) and the State Oil Company of Azerbaijan Republic (SOCAR) signed the Agreement on Phased Increase in the Volumes of Kazakh Oil Transit across the Territory of the Azerbaijan Republic and the Memorandum of Strategic Cooperation in Sale and Purchase of Kazakh Oil, Azernews reports.

The bilateral documents were signed by Magzum Mirzagaliyev, Chair of KMG's Management Board, and Rovshan Najaf, President of SOCAR, in the presence of Presidents of the Republic of Kazakhstan and the Azerbaijan Republic.

The Agreement on Phased Increase in the Transit Volumes of Kazakh Oil across the Territory of the Azerbaijan Republic provides for an increase in the volumes of Kazakh oil shipments along the Aktau-Baku-Tbilisi-Ceyhan route to 2.2 million tons annually.

Under this agreement, the parties will continue discussing the matter of decreasing the tariffs of transportation along the Aktau-Baku-Tbilisi-Ceyhan route, as well as transporting Kazakh oil along the Baku-Supsa route.

In 2022, KMG and SOCAR entered into an Agreement on Oil Transit along the Aktau-Baku-Tbilisi-Ceyhan route with an annual volume of 1.5 million tons.

The Memorandum of Strategic Cooperation in the Sale and Purchase of Kazakh Oil establishes general conditions and principles for the sale and purchase of Kazakh oil for further processing at SOCAR Group's refineries, as well as subsequent trading on the regional and global markets.

“The documents that we have signed today make an additional contribution to the strengthening of the strategic partnership between our companies in terms of Kazakh oil transportation to global markets,” Mirzagaliyev noted.