Are you sure?

Kazakhstan wants to buy 3% of CPC from Russia

  Kazakhstan wants to buy from Russia roughly half of the seven percent stake in the Caspian Pipeline Consortium (CPC) that Moscow has acquired from Oman, a senior Kazakh energy official said on Thursday.


The pipeline group is led by US major Chevron and includes Russian pipeline company Transneft, ExxonMobil, Royal Dutch Shell, LUKoil and BP. The group exports Kazakh and Russian oil CPC-E from a terminal near the Russian port of Novorossiisk. Russia owns 31% in CPC while Kazakhstan has 19%.

“We are discussing with Russia a purchase of about three percent out of the seven percent (previously owned by Oman),” Askar Batalov, the Executive Secretary of Kazakhstan’s Energy Ministry, told reporters. He said the talks would take “a month or two.”

Russia’s state property agency, which holds Oman’s former stake, declined to comment on the issue. Russia is involved in protracted discussions with other shareholders of the group on terms by which the route’s capacity could be expanded. Industry sources have said Oman was frustrated with delays in the planned expansion of the route.

CPC has been shipping oil since 2001. It pumps up to 750,000 barrels per day to Russia for re-export to the Mediterranean. (Reuters)