Kazakhstan oil export to Europe through Russia halted

During an inspection ordered by Deputy Prime Minister Viktoria Abramchenko in March to assess the technical condition of JSC CPC-R's hazardous production facilities and compliance with environmental requirements in their operation, the regulator found several documentary violations regarding the plan to clean up oil spills, the CBR said.

On June 6, the CPC was issued an order to eliminate the identified violations and a citation of administrative offenses under Part 4, Article 12.1.2 of the Code of Administrative Offences - conducting business activities in the area of transport with gross violations of license conditions, Interfax reported.

"Although the deadline for carrying out the order is November 30, 2022, Rostransnadzor's Southern State Marine and River Oversight Department petitioned the Primorsky district court of the city of Novorossiysk, Krasnodar Territory with the intention of suspending operations for 90 days, declaring this directly at a court hearing on July 5, 2022," the CPC said.

"The court dismissed JSC CPC-R's petition to postpone consideration of the case in order to file an objection against the suspension of operations. By order of the court [...] Rostransnadzor's demands were partly satisfied: JSC CPC-R was set a penalty in the form of administrative suspension of operations for 30 days," the CPC said.

The CPC said it is "forced to comply with the court ruling," although it intends to appeal it.

CPC's press service declined to comment further, including on the exact dates of the suspension of operations.

The CPC pipeline is the main export route for Kazakh oil, which accounts for more than 80% of the crude carried by the pipeline. The pipeline has capacity to carry 67 million tonnes of oil per year.

CPC's shareholders are Russia with 31% (represented by Transneft with 24% and CPC Company with 7%); Kazakhstan with 20.75% (represented by KazMunayGas with 19% and Kazakhstan Pipeline Ventures LLC with 1.75%); Chevron Caspian Pipeline Consortium Company with 15%; Lukarco B.V. with 12.5%; Mobil Caspian Pipeline Company with 7.5%; Rosneft-Shell Caspian Ventures Limited with 7.5%; BG Overseas Holding Limited with 2%; Eni International N.A. N.V. with 2%; and Oryx Caspian Pipeline LLC with 1.75%.

RHM/PR