Oil from Kazakhstan's Kashagan field shipped via the Baku-Tbilisi-Ceyhan pipeline for the first time
Kickin' it Kalasha-style: KMG's Kashagan oil takeover
Astana, Kazakhstan - Well, hooray! Kazakhstan's state-owned oil and gas company, KazMunayGas (KMG), loaded the first batch of oil from the Kashagan field on a Taraz oil tanker at the Aktau port, bound for Baku. Honest, this isn't just any ol' oil; it's the coveted Kashagan crude, y'all!
The batch, weighing in at around 6,000 tons, made its grand entrance at the Sangachal terminal in Baku on January 27. From there, the oil took a fantabulous journey through the Baku-Tbilisi-Ceyhan (BTC) pipeline to the warm, sunny Mediterranean Sea.
Did I mention the agreement that made all this happen? Yeah, it was a jam-packed one between SOCAR Midstream Operations (a subsidiary of SOCAR, Azerbaijan's state oil company) and KMG Trading, KMG's very own subsidiary. This sweet deal signed back on January 15 permits the transit of 240,000 tons of Kashagan oil every year.
That's not all! A general agreement on Kazakhstan's oil transit was inked between KMG and SOCAR back in 2022. Now, let me spin you a yarn about last March when KMG and SOCAR huddled together, inked a pact, and decided to gradually increase oil transit through Azerbaijan. Guess what? Those volumes are gonna reach a whopping 2.2 million tons per year!
The entire landscape here is shifting, people, with Kazakhstan aiming to diversify its export routes for domestic oil and beef up the Trans-Caspian InternationalTransport Route (TITR).
Speaking of behind-the-scenes action, it seems that KazMunayGas and SOCAR have been more than just transit buddies. With their sights set on industrial safety, digital solutions, carbon capture, green hydrogen development, renewable energy, investment projects, production digitalization, and environmental inspection of Caspian Sea water resources, these two are kicking it old-school style, teaming up on a plethora of ventures.
Now, here's a fun fact: this ain't the first time KMG has traveled Aktau-Baku-Ceyhan style. Last year, they shipped close to 1.7 million tons of oil utilizing this route, with plans to expand even further. Tally it up, and you've got a total of 3 million tons of oil transiting through Azerbaijan as of 2025.
So there, folks! Hope I didn't bore y'all with all that info, but it's crucial to keep a bead on these developments in the world of oil, right? Stay tuned for more global oil fun times!
Sources: 1, 2, 3
Enrichment data notes:- The agreement between KazMunayGas (KMG) and SOCAR concerning the transit of Kashagan oil through the Baku-Tbilisi-Ceyhan (BTC) pipeline involves several key aspects: - The initial general agreement was signed in 2022 to facilitate the transit of Kazakh oil through Azerbaijan. Subsequently, in March 2023, a trial shipment of 7,000 tonnes of oil from the Kashagan field was successfully carried out via Azerbaijan. - In March 2024, KMG and SOCAR signed an agreement to gradually increase the volume of oil transit through Azerbaijani territory, with a target to boost transit volumes to 2.2 million tonnes per year. - On January 15, 2025, SOCAR Midstream Operations LLC and KMG Trading (a subsidiary of KazMunayGas) signed a specific transit agreement for 240,000 tonnes of Kashagan oil annually. The first batch under this agreement, about 6,000 tonnes, was loaded in Aktau on January 25, 2025, and arrived at the Sangachal Terminal on January 27. - Overall, Kazakhstan shipped around 1.7 million tonnes of oil via the Aktau-Baku-Ceyhan route in 2025, with plans for further expansion. - The total volume of Kazakh oil transit through Azerbaijan had reached 3 million tonnes as of early 2025. - Beyond oil transit, KazMunayGas and SOCAR have broadened their cooperation to include industrial safety, digital solutions, carbon capture, green hydrogen development, renewable energy, investment projects, production digitalization, and environmental inspection of Caspian Sea water resources.
The transit agreement between KMG Trading, a subsidiary of KazMunayGas, and SOCAR Midstream Operations allows for the yearly transport of 240,000 tons of Kashagan oil, a significant player in the oil-and-gas industry. Furthermore, the cooperation between KazMunayGas and SOCAR extends beyond oil transit, with joint endeavors in industrial safety, digital solutions, carbon capture, green hydrogen development, renewable energy, investment projects, production digitalization, and environmental inspection of Caspian Sea water resources, illustrating their commitment to the energy sector and the broader business world.
