CPC negotiating with shippers to move schedule in order to inspect SPM 3 by Aug 26
MOSCOW. Aug 23 (Interfax) - The Caspian Pipeline Consortium (CPC) expects to move the schedule for oil shipments in order to inspect the sole operating single point mooring (SPM) for damage by August 26, the CPC told Interfax.
"SPM 3 is currently operating intensively, with a fairly tight schedule for shipping oil, and we need to find a window to conduct diving surveys for the inspection. There are currently only breaks in shipments at night, when diving operations are not possible. We are negotiating with shippers on moving tanker positions and creating a daytime window for diving. We hope that the inspection will be conducted by August 26, inclusive," a CPC representative of said.
The CPC notes that SPM 3, the sole operating SPM, will be able to handle up to 3.5 million tonnes of oil per month, which would be slightly more than half of the CPC's highest recorded monthly shipment of 6.4 million tonnes in March 2020.
In terms of SPM 1 and SPM 2, which halted operations in August because of damage to the buoyancy tanks, the CPC notes that it will take a month to replace each unit, subject to full readiness to begin work, including a concluded agreement with a contractor, and full financing and workforce at the site. Meantime, the company's representative has stressed that the timeframes could be adjusted depending on objective circumstances, including the weather conditions.
The CPC is conducting pre-qualification selection for a contractor based on the generated technical-design specifications, and both Russian and foreign companies are participating in the selection process.
The CPC, which passes through Russia and is the main export route for Kazakh oil that accounts for more than 80% of the crude pumped via the pipeline, has been operating without stoppage for more than 20 years. The CPC has been consistently facing complications this past year with pumping restrictions because of various external factors, including an oil spill in August 2021; damage to the SPM from a storm in March 2022; as well as a survey of the sea terminal area to search for the presence of explosive devices, though the latter incident did not affect the CPC's shipment schedule.
CPC's shareholders include Russia with 31%, as represented by Transneft with 24% and the CPC company with 7%; Kazakhstan with 20.75%, as represented by KazMunayGaz 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%.