The Majilis or lower house of Kazakhstan's parliament has ratified the protocol amending the agreement between Kazakhstan and Russia on transporting Russian oil through Kazakhstan to China dated December 24, 2013, as per Interfax.
The protocol, signed in St. Petersburg on June 16, 2023, extends Rosneft's agreement with CNPC for 100 million tonnes of oil over 10 years. The pumping tariff is set at USD15 per tonne, with a USD2.1 tariff on the Tuymazy-Omsk-Novosibirsk-2 (TON-2) pipeline section. This facilitates long-term oil transportation through main pipelines from Russia to China via Kazakhstan (Tuymazy-Omsk-Novosibirsk-2 (TON-2) and Priirtyshsk-Atasu- Alashankou) until January 1, 2034.
"The agreement's extension will guarantee the oil supply to the Pavlodar Petrochemical Plant via the Omsk-Pavlodar pipeline. From 2024 to 2033. The projected revenue from transporting Russian oil through Kazakhstan to China is estimated at USD1.71 billion for both sections, with no associated risks," Kazakh Energy Minister Almasadam Satkaliyev said.
Including replacement profits, revenue is estimated at USD1.851 billion.
The previous 10-year agreement, valid until January 1, 2024, saw 90.9 million tonnes of Russian oil transit through Kazakhstan to China, generating USD1.327 billion in revenue.
We remind, Russia announced additional voluntary cuts in oil supply mainly in the form of production cuts rather than exports, as it faced curtailed refining capacity as well as stricter sanctions. Russia has declared plans to cut its oil output and exports by an additional 471,000 bpd in April-June in coordination with some OPEC+ participating countries. While the world's second-largest oil exporter has been reducing 500,000 bpd in exports of crude oil and oil products in the first quarter, it has decided to scale down export limits in the second quarter and focus on production curbs instead.
mrchub.com