Caspian Pipeline Consortium - The Times Of Central Asia

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Caspian Pipeline Consortium

CPC Reportedly Stops Accepting Kazakh Oil as Storage Tanks Reach Capacity After Tanker Attacks

Citing three industry sources, on July 21 Reuters said the Caspian Pipeline Consortium had stopped accepting crude from Kazakhstan after tanker attacks halted Black Sea loadings. Two of the sources said the terminal's storage tanks were full. CPC has so far declined to comment. The stoppage marks a sharper disruption than the loading suspension announced on July 20. LSEG ship-tracking data showed that at least two tankers due to collect crude changed direction. Chevron owns 15% of CPC, while ExxonMobil is also a shareholder through Mobil Caspian Pipeline Company. Chevron told Reuters that "Chevron continues to monitor the situation at CPC. The safety and security of personnel remain our top priority." ASIA was one of the tankers struck before loadings were suspended. It was hit on July 19 while loading Tengizchevroil crude at the CPC terminal. Following the attack on ASIA, a Chevron spokesperson told The Times of Central Asia: “Chevron is aware of reports of an incident involving a vessel loading at Caspian Pipeline Consortium facilities near Novorossiysk. All crew are safe, and the vessel remains stable. The vessel has been moved to a safe anchorage, and we are coordinating with the ship operator and relevant authorities. There has been no impact to TCO operations or exports. Further questions regarding CPC operations should be directed to CPC.” As of early July 22, no producer had announced new output cuts in response to the CPC halt. The intake stoppage nevertheless removes the main export outlet for crude from Tengiz, Kashagan, and Karachaganak. The 1,510-kilometer pipeline carries oil from western Kazakhstan to the terminal near Novorossiysk. Terminal tanks normally buffer crude flows before tankers load offshore, but once they are full, the system has little room to receive additional oil. A prolonged shutdown could force producers to reduce output. Kazakhstan has not confirmed such reductions. CPC oil supplies fell 7% from May to 1.699 million barrels a day in June. Reuters linked the fall to a late-May accident at Tengiz and lower Russian volumes. The route handles about 80% of Kazakhstan's oil exports and almost 2% of global oil supply. The latest halt followed attacks on four tankers over four days. Nordic Zenith was hit on July 17 while approaching the terminal empty. ASIA and NISSOS IOS were struck on July 19 while loading Kazakh crude. NISSOS IOS was loading crude from Kashagan B.V. and Maten. Loadings briefly resumed that evening. A drone then struck NELSA at SPM-1 on July 20. A fire broke out on deck and in several compartments. CPC evacuated 20 of the ship's 22 crew members by tugboat, while the captain and chief officer remained aboard. The tanker stayed afloat; no casualties or oil spill were recorded, and the crude in its cargo tanks did not ignite. The NELSA was carrying Russian Urals crude, according to S&P Global shipping data. CPC then suspended oil loading. Kazakhstan's Energy Ministry said it remained in contact with the consortium while specialists assessed the vessel and the consequences of the strike....

Caspian Pipeline Consortium

Ukraine Says No Evidence of Role in Attacks on Tankers Loading Kazakh Oil: Statement in Full

The Times of Central Asia has reported on drone attacks against tankers serving the Caspian Pipeline Consortium’s Black Sea terminal, including vessels loading Kazakh crude. Kazakhstan condemned the attacks on July 17 and 19 and called for an immediate halt. A fourth tanker, NELSA, was struck while loading on July 20. TCA asked Victor Mayko, Ukraine’s ambassador to Kazakhstan, to respond. His statement is published below in full. “Ukraine understands the concerns of the Kazakhstani side regarding the incidents that occurred on July 17 and 19 involving tankers loading Kazakhstani oil through the Caspian Pipeline Consortium’s marine terminals in the waters of the Port of Novorossiysk. Let me put it this way—we understand and share these concerns. “At the same time, I am convinced that any conclusions must be based solely on verified facts. As of today, there is no evidence whatsoever that the attacks in question were carried out by the Ukrainian side. Therefore, I ask that you refrain from making hasty and unfounded accusations, whether direct or indirect, against Ukraine. “I would like to point out that the relevant Ukrainian authorities very recently warned of the possibility of Russian provocations, including those involving the use of Ukrainian drones. We have informed our international partners that Russia is actively employing various tactics: Russian electronic warfare systems are capable of disrupting the operation of Ukrainian drones, disabling them, and, in some cases, taking control of them. “That is precisely why the possibility that the Russian side may be using such drones to carry out provocations and attempts to discredit Ukraine must be thoroughly investigated. “War always brings immeasurable suffering and grief to millions of people. But even in the midst of this immense tragedy, there are certain rules recognized by international law, and violations of these rules constitute war crimes. It is forbidden to kill civilians. It is forbidden to torture children, women, and the elderly. It is forbidden to destroy civilian infrastructure in the middle of winter, leaving millions of people without heat, water, electricity, or even shelter. It is forbidden to deliberately kill rescue workers and medical personnel who are rushing to the scene of the tragedy to help the victims. It is forbidden to shoot at ambulances transporting the seriously wounded. The use of chemical weapons, including against the civilian population, is prohibited. It is unacceptable to attack civilian ships carrying Ukrainian grain bound for countries in Southeast Asia and Africa, thereby condemning millions of people to starvation. I could go on with this tragic list. Everything listed here constitutes war crimes. And those responsible for them must inevitably be punished. “Our principled position, even against this backdrop, remains unchanged. The Armed Forces of Ukraine do not strike civilian targets, including those located on the territory of the Russian Federation. Legitimate military targets are exclusively military facilities and infrastructure that support the Russian war machine, which for more than four years now has been waging an armed, unprovoked aggression of unprecedented severity against Ukraine, its army, its...

Caspian Pipeline Consortium

When the War Reaches Kazakh Oil

Russia’s full-scale invasion of Ukraine unleashed the war now expanding across the Black Sea, but it did not erase the distinction between Russian military logistics and the lawful commerce of other states. Kazakhstan is not a party to the war, yet its principal oil export route passes through an expanding maritime target zone. The attacks near the Caspian Pipeline Consortium terminal therefore raise a larger question: can civilian trade carrying Kazakh crude be treated as part of Russia’s war economy simply because geography places its outlet on the Russian coast? Four vessels were attacked near CPC’s Black Sea terminal on July 17, 19, and 20. Nordic Zenith, chartered by ExxonMobil according to Reuters, was empty and approaching the terminal when it was hit on July 17. Two days later, ASIA and NISSOS IOS were struck at single-point moorings off Novorossiysk while loading Kazakhstan-produced oil. ASIA was taking Tengizchevroil (TCO) crude; NISSOS IOS was loading oil from Kashagan B.V. and Maten. A fire on ASIA was extinguished; no one was injured, both vessels remained afloat, and no oil entered the sea. Chevron told The Times of Central Asia that the crew was safe, the vessel was stable, and there had been “no impact to TCO operations or exports.” Loading briefly resumed that evening, but on July 20 a drone struck NELSA while it was loading at SPM-1. The impact on the tanker’s starboard side caused a fire on deck and in several compartments. Its 22-member international crew was evacuated except for the captain and chief officer; the vessel remained afloat, the fire was extinguished, and no oil spill occurred. CPC suspended loadings again. Ukraine’s General Staff said separately that its forces had struck two tankers used to transport Russian oil, petroleum products, and fuel for the Russian military in the Black Sea. It did not identify the vessels or connect the claim to the attacks at the CPC terminal. Russia’s Foreign Ministry blamed Kyiv, while CPC itself did not publicly attribute the attacks. Astana’s response to the attacks has remained measured and legalistic. The Foreign Ministry called the attacks an infringement on Kazakhstan’s economic interests and a threat to lawful international trade. It said an agreed mechanism for sharing information on civilian vessels entering the Black Sea to load CPC oil had been disregarded, endangering crews. It reserved Kazakhstan’s right to seek compensation under international law. Following the strike on NELSA, the Energy Ministry said it remained in constant contact with CPC while the tanker’s technical condition and the consequences of the attack were assessed. The statements focused on Kazakhstan’s rights. That is the distinction Astana is asserting: Kazakh cargoes, revenues, crews, and commercial partners should not be treated as extensions of Russia’s war economy merely because they use a terminal on Russian territory. Kazakh Crude and the Western Stake Russia’s invasion created the maritime battlefield in which these incidents occurred, and Ukraine has a legitimate interest in weakening the military logistics that sustain Russia’s campaign. But Kazakhstan is not Russia,...

Energy Security

Kazakhstan’s Main Oil Route Remains Vulnerable. It Is Expanding Alternatives

Kazakhstan’s prosperity has been built largely on oil, much of which still reaches world markets through infrastructure crossing Russian territory. That would be a strategic exposure for any country; for a landlocked state bordering Russia during the largest war in Europe since 1945, it is impossible to ignore. The Caspian Pipeline Consortium route to the Black Sea remains Kazakhstan’s most important oil artery, carrying about 80% of its crude exports. Three tankers were struck near the terminal on July 17 and 19, two while loading Kazakh oil. Loadings briefly resumed before a fourth tanker, NELSA, was hit on July 20, forcing another suspension. No casualties or oil spill were reported, but the attacks repeatedly interrupted Kazakhstan’s main export route. Kazakhstan treated the attacks as a direct threat to its own economic interests, not as an incident confined to Russia. Its Foreign Ministry condemned the July 17 and 19 strikes as unacceptable, said an agreed mechanism for sharing information about civilian vessels entering the Black Sea to load CPC oil had been disregarded, and demanded an immediate halt. Ukraine’s General Staff said it had struck two tankers overnight on July 19 as part of its campaign against Russian oil and military-fuel logistics, but did not identify them. CPC said the vessels at its terminal were loading Kazakh crude. The episode exposed Kazakhstan’s dependence on infrastructure beyond its control. That exposure reflects geography and inherited infrastructure, not Kazakhstan’s foreign policy alignment. It is a serious strategic vulnerability that Astana is trying to reduce. Kazakhstan did not choose its geography, and its export system was not designed for the rupture that followed Russia’s invasion of Ukraine. It is the world’s largest landlocked country, bordered by Russia and China, and sits on the Middle Corridor linking China and Central Asia with the South Caucasus and Europe. No government in Astana can alter those facts. The relevant question is how it has responded to them. Under President Kassym-Jomart Tokayev, Kazakhstan remains highly exposed to oil, but it is not an oil economy standing still. KAZENERGY’s 2023 National Energy Report put the hydrocarbon sector at about 23% of GDP in 2019 and about 20% in 2022. Kazakhstan’s Bureau of National Statistics put the oil and gas sector at 16.3% of GDP in 2024. The series are not directly comparable, but both indicate that hydrocarbons remain central even as non-oil sectors expand. Oil dependence has not disappeared. UNCTAD notes that oil exports still account for more than half of total exports and remain central to foreign exchange earnings and public finances. Kazakhstan has made more progress in reducing oil’s share of GDP than its weight in exports and state revenue. Any serious assessment has to account for both. Kazakhstan’s position on Ukraine also needs to be judged in context. Binary judgments obscure the constraints facing a country that shares a long border, trade channels, energy infrastructure and significant security exposure with Russia. Kazakhstan has not recognized Russia’s attempted annexations. In 2022, its Foreign Ministry said it would...

Black Sea Tanker Attacks

Kazakhstan Condemns Drone Attacks as CPC Oil Loadings Halt

Oil loadings at the Caspian Pipeline Consortium’s Black Sea terminal have been suspended again after a fourth tanker was struck by a drone on July 20. The NELSA was loading at single-point mooring SPM-1 when the drone hit the stern on its starboard side, between the superstructure and engine compartment. A fire broke out on the deck and inside the vessel but was extinguished after several hours. CPC said 22 crew members were evacuated aboard its tugboats, while the captain and chief officer remained on the tanker. NELSA stayed afloat. No oil spill occurred, and the crude in its cargo tanks did not ignite. Loading had resumed briefly on the evening of July 19 before the latest attack forced another suspension. Kazakhstan had previously condemned drone attacks on three tankers near the Caspian Pipeline Consortium’s Black Sea terminal on July 17 and 19, two of which were hit while loading Kazakh oil. The Liberia-flagged ASIA and the Marshall Islands-flagged NISSOS IOS were attacked at single-point moorings SPM-1 and SPM-3 near Novorossiysk. ASIA was loading Tengizchevroil crude. The Marshall Islands-flagged NISSOS IOS was loading oil from Kashagan B.V. and Maten. A fire broke out on ASIA and was extinguished with CPC emergency support. No crew members, CPC employees, or contractors were injured. Both tankers remained afloat, no oil entered the sea, and the moorings were not damaged. Loading was suspended while specialists assessed the damage. Following the attack on ASIA, a spokesperson for Chevron, whose Tengizchevroil crude was being loaded onto the vessel, told TCA: “Chevron is aware of reports of an incident involving a vessel loading at Caspian Pipeline Consortium (CPC) facilities near Novorossiysk. All crew are safe, and the vessel remains stable. The vessel has been moved to a safe anchorage, and we are coordinating with the ship operator and relevant authorities. There has been no impact to TCO operations or exports. Further questions regarding CPC operations should be directed to CPC.” The Kazakh Foreign Ministry described the strikes as an unacceptable infringement on Kazakhstan’s economic interests and a deliberate attempt to disrupt lawful international trade. “Kazakhstan demands an immediate halt to these attacks,” the ministry stated. The ministry said an agreed system for sharing information on civilian vessels entering the Black Sea to load CPC oil had been deliberately ignored. It said the failure endangered crews, called for practical security measures, and reserved Kazakhstan’s right to seek full compensation under international law. Ukraine’s General Staff said its forces struck two tankers in the Black Sea overnight on July 19. It said the vessels were used to transport Russian oil, petroleum products, and fuel for Russia’s armed forces. The post did not name the tankers. CPC said both ships at its terminal were loading oil produced in Kazakhstan and did not publicly identify the attacker. The July 19 incident followed an attack on Nordic Zenith on July 17. The Suezmax tanker was empty and approaching the terminal when two drones hit it. The crew extinguished a fire. Nearby CPC...

Oil Exports

Kazakhstan Seeks to Expand Oil Exports Amid Geopolitical Uncertainty

Kazakhstan is seeking to reinforce its status as a stable oil supplier while accelerating the diversification of export routes and revising the terms of cooperation with foreign investors amid growing geopolitical uncertainty. These priorities were outlined by Energy Minister Yerlan Akkenzhenov during a speech at the CERAWeek conference in Houston and in a series of meetings with major international oil and gas companies. Discussions focused on structural changes in the global oil industry, ranging from geopolitical instability to the reconfiguration of logistics chains. According to the minister, Kazakhstan remains resilient while adapting to evolving conditions. Energy security continues to be a central concern for the sector, particularly the reliable operation of the Caspian Pipeline Consortium (CPC), through which the majority of Kazakhstan’s oil exports are transported. This route remains the most cost-effective and strategically important option. Authorities have openly acknowledged its critical role in the national economy, stressing the need to ensure uninterrupted transit. At the same time, efforts to develop alternative routes, including the Trans-Caspian corridor and increased shipments to China, are part of a strategy to reduce logistical and political risks. On the sidelines of the forum, government officials held talks with leading energy companies including Chevron, ExxonMobil, and Shell, all key investors in Kazakhstan’s oil and gas industry. Discussions with Chevron focused on expanding production at the Tengiz and Karachaganak fields, as well as developing export infrastructure. ExxonMobil reaffirmed its interest in increasing output at Tengiz and Kashagan, where localization levels are high, with Kazakhstani specialists accounting for more than 90% of the workforce. Talks with Shell focused on boosting production and expanding refining capacity, including refinery modernization and the production of winter-grade diesel fuel. In addition to operational issues, the discussions addressed the question of redistributing roles within joint projects. Kazakhstan is considering independently implementing certain gas-processing initiatives after partners failed to reach a final investment decision on the Karachaganak project. The development of the petrochemical industry and the expansion of refining capacity have been identified as separate priorities. Kazakhstan plans to double its oil-refining capacity to meet domestic demand and increase exports of petroleum products. To attract investment, the government has introduced a revised model contract offering tax incentives and encouraging geological exploration. Experts say Central Asia’s role in the global energy sector is increasing, with Kazakhstan playing a key part in regional stability. The minister said the country’s strategic objective is to maintain the sector’s investment appeal while ensuring maximum economic returns for the national economy. “Kazakhstan remains a predictable and reliable supplier of energy resources and is ready to translate the trust of its partners into the development of technological projects within the country,” Akkenzhenov said. The Times of Central Asia previously reported that Italian energy company Eni is accelerating the expansion of its projects in Kazakhstan. The company plans to complete construction of a hybrid power plant in Zhanaozen, one of the country’s main oil and gas hubs, by the end of the year.