Chevron eyes Kazakh oil route

ASTANA, Kazakhstan, June 9 (UPI) -- Global energy company Chevron expressed interest in signing onto the Kazakh portion of a trans-Caspian oil pipeline system.

Analysts in the oil and energy sector note Kazakhstan is looking to boost its oil production as it solidifies its position as the country with the 11th largest oil reserves in the world. With only three refineries, however, Kazakhstan needs more oil export routes, the Web site Journal of Turkish Weekly reported Monday.

A pipeline from Yeskene, near Atyrau, to the port town of Kuryk will link to terminals in the Caspian Sea and the Baku-Tbilisi-Ceyhan pipeline linking Azerbaijan to Turkey.

"Chevron views construction of a pipeline from Yeskene as quite an interesting option," said company chair David O'Reilly.

The $1.5 billion, 460-mile Yeskene-Kuryk route is slated for completion in 2010. It will carry around 23 million tons of oil per year, with capacity expected to top off at around 38 million tons, or about 265 million barrels.