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  KAZAKHSTAN International Business Magazine №2, 2004
 The Caspian Forum 2004: Politics, Economics and Business
The Caspian Forum 2004: Politics, Economics and Business
The International Forum Caspian Region: Politics, Economics, Business 2004 was held in Astana, the capital of Kazakhstan, on
28-29 April 2004. The Kazakh Ministry of Energy and Mineral Resources, the Kazakh Ministry of Foreign Affairs, the Kazakh Ministry of Economy and Budget Planning, and Iteca with its international partner ITE Group Plc, instigated this event, which focussed on aspects of co-operation between the Caspian states. The main sponsor was the KazMunaiGaz National Company.
The Caspian Forum started with a speech by the Kazakh Minister of Energy and Mineral Resources, Vladimir Shkolnik, who declared the forum’s aim of expanding trade and economic relations, devising a general strategy, consolidating plans, and establishing long-term relationship between the state bodies, research organisations and companies operating in the Caspian region.
The most interesting topic in the two-day conference was the discussion of solutions to the issue of the Caspian’s legal status by the Caspian states. The First Vice-President for Foreign Affairs of Kazakhstan Kairat Abuseitov, the Deputy Minister of Foreign Affairs and the Special Presidential Representative of Russia to the Caspian Sea Region Viktor Kalyuzhny, the Deputy Foreign Minister of Azerbaijan Khalaf Khalafov, and the Ambassador of Iran to Kazakhstan Morteza Saffari, expressed their concerns in this regard.
Russia, Azerbaijan and Kazakhstan have already agreed on division of the Caspian shelf, so they focused on the development of this unique basin’s water space. Kazakhstan proposed to divide the water resources into areas whose borders would become the frontiers of the Caspian countries, and between fishing areas and neutral sea. Russia thinks that only a 15-mile littoral areas should be left for the countries, and the rest of the sea and biological resources should be used jointly. There were diverse opinions concerning a military presence in the Caspian. Iran and Azerbaijan advocate the complete demilitarisation of the sea, but Kazakhstan and Turkmenistan support Russia’s stance claiming that the Caspian states’ policy should be based on principles of reasonable limitation and sufficiency, and on denying military forces of third parties access to the sea.
As for economic issues, these included the role of the Caspian Sea in Kazakhstan’s economic development, prospects for the implementation of strategically important projects related to the development of energy sources, and attracting investment in oil production and processing. The presentations by the Vice-Minister of Economy and Budget Planning of Kazakhstan Kairat Aitekenov, and the Vice-Minister of Energy and Mineral Resources Lyazzat Kiyinov, were worthy of note. Mr. Kiyinov said that the country produced 51.4 million tonnes of oil and 14 billion cubic metres of gas last year. These indices are expected to reach 55-57 million tonnes of oil and 16 billion cubic metres of gas in the coming year. Official forecasts show that active development of the Kazakhstani sector of the Caspian will result in an increase in total hydrocarbon production to reach 170-180 million tonnes of oil equivalent by 2015. Kazakhstan will need $28-30-billion investment to fulfil the programme for the development of its sector of the Caspian Sea.
The final part of the Forum included the development of transport, communications, and social infrastructure in the Caspian region. Kairgeldy Kabylbyldin, executive Director of KazMunaiGaz, spoke about the Kazakhstani system of hydrocarbon exports. He emphasized that the country applies principles of multiple directions and maximum efficiency when planning oil and gas transportation routes. Currently, about 80% of Kazakh oil is exported via the Russian pipelines Uzen-Atyrau-Samara, Kenkiyak-Orsk and CPC, 12% by rail transport, and 7% by sea. One of the transport routes for tanker supplies of hydrocarbons reaches the Iranian port of Neka, or these are transported on the SWAP basis. The Aktau-Makhachkala sea route is being actively developed at present. In addition, due to its ambitious plans to increase oil production, Kazakhstan is also developing the promising export routes such as Aktau-Baku-Tbilisi-Ceyhan, Kazakhstan-China and Kazakhstan-Turkmenistan-Iran.
The international Caspian Forum gathered together about 250 delegates from 10 countries, with 30 reports presented, and provided the Caspian business community with a unique opportunity to see the real pattern of events, discuss topical issues, and outline the prospects for mutually beneficial co-operation.

Table of contents
Navigators of Our Skies  Sergei Kulnazarov 
Traceca, a Route to the Future  Thomas Lamnidis 
Ispat Karmet: The Reincarnation of A Giant  Nawal Kishore Choudhary 
We are United - and Not Only by Oil!  Morteza Saffari Natamzi 
Pipelines in Kazakhstan: the Legal Issues  Abai Shaikenov, Anthony Cioni 
Well-drilling by Professionals!  Serik Kudaikulov 
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