On 11 March in Baku, Azerbaijan, NC 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 the Kazakh Oil.
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 the Kazakh Oil across the Territory of the Azerbaijan Republic provides for an increase in the volumes of the Kazakh oil shipments along the Aktau-Baku-Tbilisi-Ceyhan route to 2.2 mn tonnes annually.
Under this Agreement, the parties will continue discussing the matters of decreasing the tariffs of transportation along the Aktau-Baku-Tbilisi-Ceyhan route, as well as transporting the Kazakh oil along the Baku-Supsa route.
You will recall that in 2022, KMG and SOCAR entered into the Agreement on Oil Transit along the Aktau-Baku-Tbilisi-Ceyhan route with the annual volume of 1.5 mn tonnes.
The Memorandum of Strategic Cooperation in Sale and Purchase of the Kazakh Oil establishes general conditions and principles of sale and purchase of the 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 the Kazakh oil transportation to the global markets,” M. Mirzagaliyev noted.
