U.S. needed: ‘The old knots are being tied again’
Energy transport is the key to future Caspian prosperity

Caspian TransCo, the region's largest integrated petroleum transportation company, believes that the transport of Caspian energy resources to world markets is the key ingredient needed for the full development of the immense potential of the Caspian Sea region.

Company president Dr. R. Okan Tapan speaks with a quiet authority. After steadily rising in the Turkish bureaucracy to head the Social Security Office, he looked for a challenge in business. Seeing the clear need for better regional petroleum transport solutions, founded Caspian TransCo in 1996.

Tapan learned how to coordinate sea shipments, land storage, pipeline, train and terminal operations in several countries, and also forged a partnership with Chevron Oil and other major petroleum companies.

Tapan's imagination and determination has made his company a regional petroleum transportation leader. Today, Caspian TransCo contributes significant portions of the gross revenues of a number of rail and shipping companies in the area. Despite his own achievement, however, Tapan gives credit to President Aliyev. "The President of Azerbaijan was the first to believe in our project - our existence is proof of his vision."

Despite many pipeline projects currently under consideration to transport increased Caspian region oil production, Caspian TransCo believes it is uniquely positioned to continue to play a key role. "It is important to have alternative outlets to world markets, in case there are adverse political conditions, or when it is desirable to segregate oil according to quality at source," Tapan says. "We at Caspian TransCo offer that alternative, especially for Kazakhstan and Turkmenistan."

Tapan believes that the market will ultimately determine the direction of additional Caspian oil. "Kazakhstan production, for example, is increasing. We plan to continue to ship a significant portion of Kazakhstan's oil, but if Georgia continues to increase tariffs to increase their profit, more of Kazakhstan's oil will be shipped via Novorossysk."

However, Tapan adds, "While Russia wants all excess production to go through Russia, Kazakhstan is keen to diversify its export routes." He is convinced that Azerbaijan and Turkmenistan are equally committed to diversification.

Tapan says that as "the old knots are being tied again" around the Caspian, it is imperative for the United States, which has a major and growing role in the development of Caspian energy resources, to be even more attentive to the needs of the region.

Referring in particular to Section 907 of America’s Freedom Support Act, Tapan says, "American ethics, laws, and ideals are stated, but not witnessed in practice. There is a communication discrepancy that must be overcome. The government and the man on the street here simply do not understand the US attitude toward Azerbaijan."