1 Mar 2023 15:15

CPC finds Russian alternatives to 97% of foreign equipment needed for smooth system operation

MOSCOW. 1 March (Interfax) - The Caspian Pipeline Consortium, or CPC, has selected Russian alternatives for most of the foreign-made equipment necessary for the smooth operation of the Tengiz-Novorossiysk oil pipeline, the CPC reports.

"Views were exchanged on the situation with foreign-made equipment supply for CPC needs to support safe and reliable operation of Tengiz-Novorossiysk crude pipeline. It was pointed out that 96.8% of the stock items for which a search for alternative manufacturers and suppliers was required had already been found in the Russian Federation. However, there are some important items for which there is only an operating stock. To support long-term replenishment of inventory, CPC continues to study the market and conducts survey in this direction," the press release says about the results of a meeting of CPC governing bodies.

The meeting participants considered banking services issues for the CPC's activities, including the possibility of attracting large foreign banks for this issue, the release said.

Shareholders and members of the board of directors also considered the progress of the program to improve the reliability of the CPC pipeline system and its program to eliminate bottlenecks, the consortium's financial results and other business.

The consortium was reported to have had difficulties purchasing equipment from its foreign partners which was not subject to international sanctions. Therefore, in November 2022, Magzum Mirzagaliev, the head of the Kazakh national oil and gas company KazMunayGas, a CPC shareholder, said that the company, with the Kazakh government's support, is holding consultations with authorized bodies in the EU, the U.S. and the UK to solve problems related to ensuring the supply of equipment to the CPC.