Kazakhstan forced to halt oil exports via Russian CPC terminal due to tanker attacks

A series of attacks on oil tankers in the Black Sea are jeopardizing Kazakhstan’s exports, the publication writes.

The Caspian Pipeline Consortium (CPC) terminal near the Russian port of Novorossiysk was set to cease accepting pipeline deliveries on July 21. This is because tanker companies are too apprehensive to dispatch their vessels to the facility, according to two sources familiar with the matter.

It remains unclear, Bloomberg notes, whether the announced suspension has commenced.

Oil production in Kazakhstan

Oil producers in Kazakhstan will also be forced to reduce their output. This will occur if pipeline deliveries to the CPC are halted by the end of this week, sources indicate.

These disruptions are happening amidst an almost complete stoppage of crude oil supplies through the Strait of Hormuz. This is due to the resumption of hostilities between the US and Iran, and the Houthi threat to Saudi exports from the Red Sea.

What is known about the CPC

The CPC terminal is the largest market for oil exports from Kazakhstan, accounting for approximately 80% of the country’s crude oil flows.

These flows are primarily from projects in partnership with international oil giants, including:

Chevron Corp.,ExxonMobil Holdings Corp.,Shell Plc.What the suspension of supplies threatens

Kazakhstan is the second-largest oil supplier to Europe. A reduction in its flows will harm regional refineries at a time when they are seeking to replace supplies from the Persian Gulf, Bloomberg states.

Ukraine has not claimed direct responsibility for the strikes involving Western vessels. Although information about several attacks on unnamed oil tankers in the Black Sea in recent days has been released, the article mentions.

While the CPC terminal is located in Russia, exports from the facility are not subject to Western sanctions, Bloomberg noted.