Friday, February 18, 2011 -
A unit of the giant Canadian mining company Tethys Petroleum Limited has signed an agreement with oil distributor Eurasia Gas LLP to build a rail terminal in Kazakhstan in June to facilitate the movement of oil.
Tethys, which owns operations in Kazakhstan, Tajikistan and Uzbekistan, will open the terminal to help transport its oil products throughout the vast country to reduce the cost of logistics, the Reuters news agency reported on Friday.
Tethys will own 50 percent of the terminal with Eurasia Gas owning the remainder.
The company is currently producing 750 barrels of oil per day (bpd) on its Kazakh oil property, and plans to increase this output to 3,000 to 4,000 bpd.
To reach this goal, Tethys will have to install additional oil production infrastructure, which it says it plans to do.
At the moment, the nearest oil processing plant is located 267 miles away.