18 Feb 2010 18:27

Kazakh oil transit more economical via Poland than Ukraine

ASTANA. Feb 18 (Interfax) - Diverting Kazakh oil supplies towards Poland turned out to be more cost-effective, head of national gas company KazMunayGas Kairgeldy Kabyldin told a press conference in Astana on Thursday.

"We asked for help from our Russian colleagues, who suggested sending supplies towards [Poland], which turned out to be economically more effective than towards Odesa," he said, adding that 3.5 million tonnes of Kazakh oil had been diverted towards Gdansk.

In late 2009, Ukrainian monopolist Ukrtransnafta notified KazTransOil in writing about the unilateral termination of the contract on Kazakh oil transit via Ukraine as of January 26, 2010. At the same time, the Kazakh-Ukrainian intergovernmental cooperation agreement on the supply and transit of Kazakh oil to and via Ukraine, signed on June 1, 2004, remains valid.

The February supplies of Kazakh oil will be shipped towards Poland (Gdansk).

Ukratransnafta will be seeking to increase the oil transit fee for Kazakhstan, said Yuriy Prodan, Ukraine's Fuel and Energy Minister. "Commercial talks are under way about the price of transportation. If the parties are satisfied with the price and quantities, a relevant agreement will be signed," he said.