4 Oct 2023 12:46

Russia not concerned about disruption of oil supplies via CPC due to geopolitics - minister

ASTANA. Oct 4 (Interfax) - Russia is working with Kazakhstan on supplying oil via the Caspian Pipeline Consortium (CPC) pipeline and does not have any concerns about this due to geopolitics, Russian Energy Minister Nikolai Shulginov told reporters.

"We have normal, constructive cooperation [with Kazakhstan] on supplies via the Caspian Pipeline Consortium, so we don't have any concerns at this point," Shulginov said.

"We believe that any actions against energy infrastructure, oil pipelines or gas pipelines are unacceptable in regard to all countries," he said.

The U.S. ambassador to Kazakhstan, Daniel Rosenblum said last week that the United States discussed ensuring the secure operation of the pipeline with CPC members.

These discussions were with the government of Kazakhstan, as well as with representatives of various companies that count on the CPC in their work, so they are, of course, interested in uninterrupted and safe transportation of oil, Rosenblum told reporters in Astana last week when asked if the subject of ensuring the secure operation of the CPC was discussed with the U.S. in light of Kazakhstan's announcement of plans to raise this issue at the political level.

He also said that an agreement will hopefully be reached to ensure the security of commercial and civilian facilities in the Black Sea. The situation in the Black Sea is difficult and it would be very good for everyone if there was some sort of agreement that would help ensure the security of commercial and civilian facilities and infrastructure, Rosenblum said, commenting on talks among CPC participants about ensuring the pipeline's security.

The CPC told Interfax that management was not informed about such meetings and did not take part in them. "However, the company's management is taking the necessary measures to ensure the safe operation and protection of all the infrastructure of the Tengiz-Novorossiysk oil pipeline," a CPC spokesman said.

Kazakh Energy Minister Almasadam Satkaliyev told reporters earlier that Kazakhstan plans to table an initiative to ensure the secure operation of the Novorossiysk port on the Black Sea. The beneficiaries here are major global consumers, including ones from the European Union, he said.

Russia's Defense Ministry reported on August 4 that Ukrainian drone boats in the area of Novorossiysk were destroyed overnight by Russian ships guarding the outer harbor of the naval base. The infrastructure of the CPC pipeline was not damaged in the incident and loading of oil continued, but ship traffic at the Novorossiysk port was temporarily prohibited.

The 1,511-km CPC pipeline, which connects oil fields in western Kazakhstan and Russian offshore fields in the Caspian Sea to a marine terminal in Novorossiysk, is the main export route for Kazakh oil. The pipeline carried 58.7 million tonnes of crude for export in 2022, 3.3% less than in 2021.

The CPC's shareholders are Russia with 31% (24% managed by Transneft , 7% on balance sheet); Kazakhstan with 20.75% (represented by KazMunayGas with 19% and Kazakhstan Pipeline Ventures LLC with 1.75%); Chevron Caspian Pipeline Consortium Company with 15%; Lukoil International GmbH 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%.