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CPC: Russian court orders that the Caspian oil export terminal will not be suspended by the Russian court

The Caspian Pipeline Consortium said that on Friday, a Russian court fined the consortium 200,000 roubles (2,370 dollars) for oil transhipment infractions. However, it was ruled by the court that its Black Sea Export Terminal facilities would not be suspended.

This decision is likely to prevent a possible fall in Kazakhstan oil production via CPC. Around 80% of Kazakhstan's exports are oil.

Sources in the industry told of a frenzy of diplomatic activity before the court's ruling regarding the pipeline operations between Russia and Kazakhstan.

Transneft, the Russian oil pipeline monopoly, announced on Thursday that Nikolai Tokarev met with Askhat Khassenov from KazMunayGaz in Moscow. Both companies are major CPC shareholders.

Transneft didn't mention CPC in its statement regarding the meeting.

After a series of inspections in response to a major oil spill that occurred in December, the Russian transport regulator ordered CPC, which includes Chevron, Exxon Mobil and other shareholders, to suspend its operations at two moorings on its Black Sea Export Terminal.

CPC reported on Friday that the court had, after considering the inspection, found the Russian portion of the CPC consortium responsible and imposed a fine of 200,000 Russian roubles, without suspending the exporting facilities.

When the CPC export terminal will resume normal operations was not immediately apparent. CPC refused to comment on timing.

The CPC pipeline was set to export 1.7 million barrels of oil per day in April, which is approximately 6.5 millions metric tons.

CPC is a major oil-export route for Kazakhstan. Due to the rising production of the Tengiz oilfield, owned by Chevron, Kazakhstan has exceeded its export quotas in the OPEC+ producer groups, which include OPEC, Russia, and other countries.

Saudi Arabia and other OPEC+ countries have also pressed Kazakhstan to reduce production in order to meet its quotas.

OPEC+ announced on Thursday that it would increase output before the scheduled date, indicating its confidence in non-compliant member countries to reduce production.

(source: Reuters)