Kazakhstan proposes Iran pipeline deal

Published December 7th, 2000 - 02:00 GMT

Kazakhstan said Wednesday that oil majors interested in constructing an oil pipeline to Iran should control 50 percent of the project while putting up 100 percent of the costs. 


Countries with an interest in the proposed link from Kazakhstan through Turkmenistan to Iran, would share the other 50 percent of the project, Interfax cited the Kazakh foreign ministry as saying. 


However, the companies involved want Kazakhstan, Turkmenistan and Iran to share just 21 percent of the project once a consortium is formed, Interfax said. 


They have suggested that the three countries receive a further 29 percent after the oil majors had earned a "sensible" level of profit on their investment capital, the news agency said. 


The report failed to mention which companies are interested in the project. 


But Menno Grouvel, regional vice president of TotalFinaElf's Exploration and Production said Wednesday that the Iranian route was possibly the best from an economic point of view. 


The United States has put strong pressure on Kazakhstan to commit oil to a pipeline from Azerbaijan to Turkey, which would avoid both Russia in the north and Iran in the south. Kazakhstan has yet to make a final commitment.—AFP. 

©--Agence France Presse. 

© 2000 Mena Report (www.menareport.com)

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