### Trans-Caspian Oil

The U.S. has supported a number of proposals to add additional oil volume to help justify a Baku-Ceyhan line economically, and to avoid Iranian influence. One suggestion is to build an underwater 370 mile trans-Caspian pipeline to bring oil from Aktau in Kazakhstan to Baku and then out to market via the Baku-Ceyhan line. Estimated costs for this line would range from $2.5 to $3 billion . This proposal is at an economic disadvantage due to the high cost of the Baku-Ceyhan line, and transitfees by Azerbaijan, Georgia, and Turkey. If a gas pipeline is routed parallel to this oil pipeline then the route will be more economically attractive because of some economies of scale.

Trans-Caspain, Baku-Ceyhan (800 kb/d) | Cost / b
Lifting costs at Tengiz | $2.00
Pipeline to Baku | $1.50
Azerbaijani Transit Fee | $0.40
Pipeline to Ceyhan | $2.44
Georgian Transit Fee | $0.43
Turkish Transit Fee | $1.50
Shipping to Rotterdam, VLCC | $0.76
Subtotal | $9.03

A trans-Caspian oil pipeline would face the same risks as the Baku-Ceyhan line, in addition to difficulties concerning the territorial division of the sea floor among the littoral states. As well, environmental concerns have been raised over this line because an oil leak will harm the Caspian Sea ecology, particularily the caviar-producing sturgeon.

A trans-Caspian line is not likely in the near future because the current reserves at Tengiz are being exported through the CPC pipeline to Novorossiysk, and it is unlikely that a surplus will occur soon. Thus, additional reserves must be found in Kazakhstan before a pipeline to Turkey becomes feasible. In addition, Kazakhstan prefers a less expensive route through Iran unless the US can provide the additional funding necessary for the trans-Caspian route.

Trans-Caspian Oil Links