A Russian court has ordered the Caspian Pipeline Consortium (CPC), which transports oil from Kazakhstan to the Black Sea, to suspend activity for 30 days.
CPC, which holds close to 1 percent of global oil and includes U.S. companies Chevron and Exxon, said on July 6 that the decision to suspend operations was related to concerns about oil spills and that the consortium would respect the decision.
In the statement posted on the website, CPC said he plans to appeal the decision.
“The Caspian Gas Pipeline Consortium works within the legal framework of the Russian Federation and is obliged to respect the court’s decision. The decision will be appealed according to the procedures defined in the law,” the CPC statement said.
About 80 percent of Kazakhstan’s oil exports go through Russia’s port in the city of Novorossiysk. The terminal located in this port can transport up to 67 million tons of oil per year.
The United States has imposed sanctions on Russian oil over its unprovoked invasion of Ukraine, but has said shipments coming from Kazakhstan through Russia should not be cut.
The CPC said on July 6 that Russian Deputy Prime Minister Viktoria Abramchenko has asked several agencies, including industry safety regulator Rostekhandzor, to inspect buildings that are Russia’s part of the consortium.
This consortium said the inspection found some irregularities on the plans for what to do if there is an oil leak. An oil leak had occurred at the terminal last year.
Russian authorities had initially given CPC until November 30 last year to remedy the violations, but the transport regulator then requested the terminal be closed on July 6, and the court upheld this request.
The court said the cessation of operations was necessary to prevent any potential environmental damage.
The operations of this gas pipeline were already stopped earlier this year due to damage to the Black Sea terminal.
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