Rovshan Ibrahimov Editor of USAK Energy Review printable version send your friend message to author add comment (2)

Friday, 30 October 2009

French President Sarkozy’s official visit to Kazakhstan in early October 2009 proved to be very interesting and promising. The two countries have signed contracts totaling more than $6 billion. In particular, both countries plan to cooperate in the field of atomic energy: France will help Kazakhstan produce fuel assemblies for nuclear reactors and to increase the production of uranium. This agreement is in line with France’s external economic activity after Sarkozy was elected president; he attaches great importance to the development of nuclear energy and cooperation in this field with other countries. In addition to this treaty, France and Kazakhstan signed a cooperation agreement on the transportation of military equipment and personnel through Kazakhstan to Afghanistan, where French forces are part of an effort to stabilize and rebuild the country. After the passage on the Pakistan-Afghanistan border was damaged and with instability on the rise in Pakistan, the coalition countries that are involved in military operations in Afghanistan began to look for new transportation options.

Kazakhstan and France also signed a cooperation agreement on research in space, in particular on the conditions of the creation and use of space remote sensing and assembly and test facility spacecraft. However, the most interesting cooperation agreement is regarding the oil and gas sector, in particular, the possible joint construction of the Esken-Kuryk pipeline. It should be noted that this pipeline is considered an integral part of the Caspian oil transportation system, and an agreement several years ago between Kazakhstan and Azerbaijan was designed to ensure its establishment. Upon completion, this system will transport oil from the Tengiz and Kashagan Kazakh oil fields through the Caspian Sea to Baku, and then along the Baku-Tbilisi-Ceyhan pipeline or the ports of Georgia, located on the Black Sea. The system will not only rely on the existing Baku-Supsa pipeline and rail transportation; a new pipeline will also be constructed from Baku to the Georgian ports. It should be noted that the length of the Esken-Kuryk pipeline will be 770 kilometers. The total length of the connection from the Tengiz oil field to the Esken-Kuryk pipeline and then to the port of Aktau should be about 950 kilometers. The annual capacity of the pipeline is designed to be at least 56 million tons. However, the possible upward revision of its power tills the 96 millions tons.

France’s interest in implementing the project is important, for such projects are always carried out with the support of Western countries. For example, the realisation of oil production in Azeri-Chirag-Guneshli, was made possible thanks to the enthusiasm of the British company BP, and construction of the Baku-Tbilisi-Ceyhan pipeline was directly supported by the U.S. government. Consequently, the participation of France will only increase the chances for this project. In addition, since Sarkozy came to power, France has actively cooperated with the United States in the international arena, becoming a faithful ally. Given that the Obama administration is now engaged with the problems inherited from the Bush administration,is one of the reason of French activity in Kazakhstan . France will most likely become a more active player in Kazakhstan and in other Central Asian states. If the project of the Caspian transport system is realized, Kazakhstan will be able to leave Russia’s sphere of influence. Following more independent policy in this field is not only interested in Kazakhstan itself, but also the United States and France, which also indirectly represents the interests of the EU. In short, France is no stranger to the region: French oil companies are actively cooperating with Azerbaijan and France has long been engaged in the development of Azeri oil and natural gas fields. Another interesting detail concerns France’s revitalized interests in the region. Just after a state visit to Astana, France announced its desire to join the Nabucco gas pipeline, which is also expected to transport gas from Central Asia. 

 

One thing is clear: France has entered the region of Central Asia and the Caspian Sea. Disscused and confirmed projects between the tow states, will be a good reason for a long-term cooperation It is likely that Kazakhstan will become a kind of springboard for France to strengthen its activities in other countries of the region, particularly in Turkmenistan and Uzbekistan. France and other Western countries create a kind of consortium for the implementation of energy projects in Central Asia. In any case, France’s activity carries some risk but may subsequently result in huge dividends. After all, in the development of energy projects in Azerbaijan, the winners were those who had started their activities. Thus, France is becoming an important new player in the Caspian region. And it is worth noting that the U.S. would support its ally as the representative of its interests in the region.