KAZAKHSTAN, CHINA MOVE TO BUILD OIL PIPELINE

Excerpt from report by Interfax-Kazakhstan news agency

Astana, 29 July: Preparations for the construction of the Atasu (Kazakhstan)-Alashankou (western China) oil pipeline and other issues to do with the start of the work on this project were discussed today at a sitting of the Kazakh government chaired by Prime Minister Daniyal Akhmetov.

A report circulated by the prime minister's press service says that Akhmetov noted "positive results in the performance of all the ministries, departments and other structures involved" in implementing the project.

The report notes that the head of government also drew the attention of those attending the session to the fact that the construction of this major pipeline would give [the country] "serious and invaluable experience of managing such a large facility".

It was noted at the session that "talks have been held successfully" with China on the main principles and terms of financing, that charter documents on the creation of a joint venture Kazakh-Chinese pipeline had been signed, the enterprise's budget and work schedule had been specified, creditor banks had been tentatively defined and other issues had been resolved.

The state company KazTransOil (part of the KazMunayGaz oil and gas national company) represents Kazakhstan in this joint venture, which was set up on a parity basis.

The report says that the construction of the Atasu-Alashankou major pipeline, which will be 1,000 km long and will have an annual capacity of 10m tonnes, will start this year and is due to be completed by 2005.

Following the session the prime minister ordered relevant ministries and departments to promptly carry out tasks set by the country's president [Nursultan Nazarbayev] within the framework of the construction of the Atasu-Alashankou pipeline.

[Passage omitted: background]

Source: Interfax-Kazakhstan news agency, Almaty, in Russian 0913 gmt 29 Jul 04

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