CPC will appeal against the Court’s judgment
The Primorsky District Court of Novorossiysk suspended the activities of Caspian Pipeline Consortium (CPC) for 30 days from July 5 after Rosprirodnadzor revealed violations at production facilities of CPC. Major shareholders of CPC are Transneft (24%) and KazmunayGas (19%).
Pursuant to an instruction by Victoria Abramchenko, Deputy Chairperson of the Russian Federation Government, Rostechnadzor, Rosprirodnadzor and Rosmorrechflot were ordered to assess the technical status of the Consortium’s industrial facilities and compliance with environmental requirements by 25 April 2022.
Unscheduled field inspectionwas held on 6 May 2022. The inspection revealed some documentary violations in the Oil Spill Response Plan.
On 6 June 2022, the Consortium received a citation on elimination of the violations by 30 November 2022.
CPC-R is accused of violation an alternative penalty for which is administrative suspension of activities for up to 90 days.
Although violations are to be eliminated by 30 November 2022, Southern Department of Rosprirodnadzor appealed to the Primorsky District Court of Novorossiysk, the Krasnodar Territory for suspend the activities of CPC-R for 90 days.
On 5 July 2022, the Court ruled that activities of CPC-R are suspended for 30 days.
CPC says it will appeal against the Court’s judgment.
CPC Pipeline System is one of the major investment projects with foreign capital in energy sector in the CIS. The length of the Tengiz – Novorossiysk pipeline is 1,511 km. This route transports over two thirds of all Kazakhstan export crude, as well as crude from Russian oil fields, including those in the Caspian Region. CPC Marine Terminal is equipped with three Single Point Moorings (SPM) that allow to load tankers safely at a significant distance offshore, also amid poor weather conditions.
CPC Shareholders: Federal Agency for State Property Management represented by Transneft (trust management) – 24%, CPC Company – 7%, KazmunayGas – 19%, Kazakhstan Pipeline Ventures LLC – 1.75%, Chevron Caspian Pipeline Consortium Company – 15%, LUKARCO B.V. – 12.5%, Mobil Caspian Pipeline Company– 7.5%, Rosneft-Shell Caspian Ventures Limited– 7.5%, BG Overseas Holding Limited– 2%, Eni International N.A. N.V. S.ar.l. – 2% and Oryx Caspian Pipeline LLC – 1.75%.
