The expansion of Kazakh oil exports via the Baku–Tbilisi–Ceyhan (BTC) pipeline helps reduce geopolitical risks and dependence on transit states, which, in turn, enhances Kazakhstan's energy security.
ABC.AZ informs about this, referring to an analytical report on the prospects for deepening economic cooperation between Azerbaijan and Kazakhstan, prepared by the Astana International Financial Center (AIFC) and the Institute for Development and Diplomacy (IDD) at ADA University.
The review notes that Kazakhstan and Azerbaijan are strengthening cooperation in the oil and gas sector by developing alternative oil export routes, in particular through the BTC pipeline.
“Kazakhstan and Azerbaijan are countries with rich energy resources. Cooperation in the oil and gas sector is of strategic importance, as it makes it possible to maximize the use of natural resources, increase energy security and strengthen competitiveness in global markets. In 2024, Kazakhstan produced roughly 88 million tons of oil, while Azerbaijan produced close to 29 million tons. Thus, the combined oil production of the two countries totaled nearly 117 million tons, which is a significant contribution to the global supply,” the document says.
The review notes that Kazakhstan is heavily dependent on the Caspian Pipeline Consortium (CPC), which runs through Russia, to export oil to international markets. About 70% of the total oil production in the country is exported, while CPC accounts for about two thirds of the exported oil.
“Transportation via CPC is the most economically advantageous option for Kazakhstan. Nevertheless, given the strategic importance of oil for the country's economy, the diversification of export routes through cooperation with Azerbaijan can help reduce geopolitical risks and dependence on a limited number of transit routes,” the authors of the review believe.
It is noted that Kazakhstan and Azerbaijan have already begun to implement cooperation in this direction. In 2024, Kazakhstan exported over 1.4 million tons of oil through the BTC pipeline, thereby demonstrating the viability of a model for using joint infrastructure.
“According to official forecasts, in the short term, Kazakhstan plans to increase exports through BTC to 2.2 million tons per year, and in the long term to 20 million tons as production increases and infrastructural coordination improves,” the review says.
In addition to oil transportation, the countries can expand cooperation in the field of exploration and production of hydrocarbons. “For example, Azerbaijan has advanced competencies in the exploration and development of fields, including major projects such as the Azeri-Chirag-Guneshli (ACG) block and Shah Deniz field. Combining expert knowledge can help accelerate the development of similar projects in Kazakhstan,” the document says.
