U.S. Department of State
Statement by Philip T. Reeker, Deputy Spokesman
Caspian Pipeline Consortium
The United States welcomes the formal completion of construction of the Russian portion of the Caspian Pipeline Consortium pipeline. A November 22 ceremony near the Russian Black Sea port city of Novorossiysk commemorated the conclusion of construction. The pipeline will carry crude oil from Kazakhstan and Russia to world markets, with the first shipment expected in summer, 2001.
The Caspian Pipeline Consortium project is the largest U.S. investment in Russia to date, with the U.S. partners investing nearly half the estimated $2.5 billion necessary to complete the project in Russia and Kazakhstan. The project includes the U.S. firms Chevron, Exxon-Mobil, and Kerr McGee. Amoco and Arco, now owned by BP, are also participants.
The President and Vice President have made the pipeline a major priority in our dialogue with both Russia and Kazakhstan for many years because of the project's importance as an investment, as a link to world markets, and as an example of cooperation between nations and of partnership between local and international companies and officials. The United States has also long supported the project as a principal part of our multiple pipeline policy for the Caspian region, which includes the Baku-Tbilisi-Ceyhan oil route and the two early oil routes from Azerbaijan.
The Caspian Pipeline Consortium is an example of a project developed through private investment and adherence to international commercial, financial, and environmental practices. The tangible results of the hard work required to complete the pipeline include billions of dollars of tax revenue to Russia over the life of the project, permanent jobs, a heightened role in world energy markets, strong private sector partnerships, and increased flow of oil to world markets.
The United States congratulates Russia, Kazakhstan, and the investor companies on the cooperation that has achieved this milestone for the Caspian Pipeline Consortium project, which we have worked so hard to advance together.
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