Kazakhstan in consultations with EU, U.S., UK over issues with deliveries of equipment for Caspian Pipeline Consortium
ASTANA. Nov 25 (Interfax) - Kazakhstan is conducting consultations with the European Union, the United States, and the United Kingdom because of problems with the delivery of equipment to the Caspian Pipeline Consortium (CPC), Magzum Mirzagaliyev, CEO of the Kazakh oil and gas company KazMunayGas, said on Friday.
Owing to efforts by Kazakhstan and foreign shareholders, no foreign sanctions have been imposed on KazMunayGas, and yet it is experiencing some issues with receiving equipment, the KazMunayGas press service quoted Mirzagaliyev as saying while meeting in Moscow with Nikolai Tokarev, president of the Russian oil transport company Transneft.
"KazMunayGas, with support from the Kazakh government, is conducting consultations with authorized EU, U.S., and UK bodies to settle the issue," the company said with reference to Mirzagaliyev in a statement available on its website.
Mirzagaliyev and CPC CEO Nikolai Gorban discussed working issues concerning the reconstruction of the pipeline by building a 1,160-meter connector between the 203rd kilometer of the CPC and the Kasymov oil pumping station and the delivery of new vessels for the CPC sea terminal's scheduled maintenance.
Mirzagaliyev thanked Russia for measures it has taken to complete the repairs of a single point mooring (SPM) on the CPC's sea terminal.
"The CPC presents an example of longstanding successful and mutually beneficial international partnership and is the most efficient export route, ensuring high profitability for its shareholders," the press service quoted Mirzagaliyev as saying.
The CPC oil pipeline passes through Russia and is the main export route for Kazakh oil, accounting for more than 80% of the volumes pumped through the pipeline. It has been operating without failure for more than 20 years. However, over the past year, the system has been experiencing consistent problems with pumping restrictions owing to various external factors, including an oil spill accident in August 2021, SPM damage during a storm in March 2022, surveys of the marine terminal water area for the presence of explosive objects (which did not affect fulfilling the CPC shipment schedule), and halts of two SPMs in August 2022.