Kazakh officials are discussing with French oil company TotalFinaElf the viability of an oil pipeline from Kazakhstan to Iran, the Kazakh President’s office said on 20 May 2002.

At present, the Kazakh state oil company, Kazmunaigas is in talks with TotalFinaElf to prepare a feasibility study for a pipeline from Kazakhstan to Iran, a statement from President Nursultan Nazarbayev’s office said.

The pipeline could enable economically profitable access to the oil markets of the Asian-Pacific region through the Persian Gulf for oil producers operating in Kazakhstan, mainly on the Caspian shelf, the statement said.

It added that the realization of this project depends on the results of drilling and the start of oil production on the Caspian shelf.

TotalFinaElf Chairman, Thierry Desmarest said after talks with Nazarbayev that he thinks it is absolutely reasonable to think about the southern direction, towards Iran.

The oil link is strongly opposed by the United States, which has accused Iran of being part of an axis of evil together with North Korea and Iraq, seeking to develop weapons of mass destruction.

Washington has repeatedly voiced support for another route to transport Kazakh oil from Baku in Azerbaijan to Turkey’s Ceyhan, which would bypass Iran.

Mr. Desmarest said that it is necessary to work on both directions at the same time, referring to the proposed Iranian and Baku-Ceyhan routes.

Non-oil export reached $300 million in the first month of 1381

During the period, export of non-oil goods increased to $342.5 million by adding $3.9 million in luggage-carried goods and $9.4 million in border market activities.

The report stated that the weight of non-oil goods exported during this period amounted to 908,500 tons, showing a 1% decrease compared to the same period the year before.

It added that the reason for the decrease in the weight of exported non-oil goods was mainly due to the decrease in the weight of steel and metals, construction materials and clinker. The growth shown in the value of export of non-oil goods was due to the increase in the price of various gases, other industrial goods, copper, ammoniac, hand-woven carpet, fruit juice and other petrochemical products.

Parliament to review foreign contracts

Mr. Zafarzadeh said that most governmental agreements with foreign companies have a buy-back or finance element and naturally the success and failure of these contracts has a direct effect on Iran’s economy and may intensify the country’s economic crisis.

He added that lack of sufficient information in regards to the different methods of investment and implementation of these contracts has caused some ambiguity in the public’s judgment. However, it is projected that with the approval of the plan, in addition to the strengthening of the Parliament’s supervisory role, the public’s trust in governmental contracts will increase as well.