{"id":1610,"date":"2022-07-19T12:15:36","date_gmt":"2022-07-19T12:15:36","guid":{"rendered":"https:\/\/prendergast.net\/?p=1610"},"modified":"2022-07-19T12:15:36","modified_gmt":"2022-07-19T12:15:36","slug":"dispute-over-the-kazakh-oil-pipeline","status":"publish","type":"post","link":"https:\/\/prendergast.net\/?p=1610","title":{"rendered":"Dispute Over The Kazakh Oil Pipeline"},"content":{"rendered":"

\nDispute Over The Kazakh Oil Pipeline<\/span><\/span><\/span><\/p>\n

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\nKazakhstan<\/u><\/span><\/span><\/span><\/a>, officially the Republic of Kazakhstan, is a transcontinental landlocked country located mainly in Central Asia and partly in Eastern Europe.<\/span><\/span><\/span><\/p>\n

The country dominates Central Asia economically and politically, generating 60 percent of the region's GDP, primarily through its oil and gas industry<\/span><\/span><\/span><\/p>\n

Kazakhstan holds about 4 billion tonnes (3.9 billion long tons; 4.4 billion short tons) of proven recoverable oil reserves and 2,000 cubic kilometers (480 cubic miles) of gas. Kazakhstan is the 19th largest oil-producing nation in the world.<\/span><\/span><\/span><\/p>\n

The <\/span><\/span><\/span>economy of Kazakhstan<\/strong><\/span><\/span><\/span> <\/span>is the largest in Central Asia in both absolute and per capita terms. Kazakhstan has attracted more than $370 billion of foreign investments since becoming an independent republic after the collapse of the former Soviet Union.<\/span><\/span><\/span><\/p>\n

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\nLarge energy companies such as Chevron, ExxonMobil, Royal Dutch Shell, and Eni own since the 90th  rights for oil and gas production in Kazakhstan.<\/strong><\/span><\/span><\/span><\/p>\n

Kazakhstan has a customs union with Russia and Belarus and is also a member of the Eurasian Economic Union.<\/strong><\/span><\/span><\/span> <\/span>Yet, for example, in 2017, the European Union was Kazakhstan's most important trading partner, with a share of 38.7% in foreign trade. <\/span><\/span><\/span>Kazakhstan has the potential to be a world-class oil exporter in the medium term. <\/span><\/span><\/span><\/p>\n

Kazakhstan has the largest and most powerful economy in Central Asia. The economy of Kazakhstan, supported by rising oil production and prices, grew by an average of 8% per year until 2013, before slowing down between 2014 and 2015. It was thus the most dynamic world economy of the early 21st century after China and Qatar.<\/span><\/span><\/span><\/p>\n

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Problems of the Caspian Pipeline Consortium<\/span><\/span><\/span><\/strong><\/h2>\n

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The capacity of the Caspian pipeline<\/span><\/span><\/span><\/strong><\/h2>\n

CPC brings oil from Kazakhstan to the Russian Black Sea coast and is one of the largest oil pipelines in the world. <\/strong><\/span><\/span><\/span>It transports about one percent of the world's oil.<\/span><\/span><\/span><\/p>\n

The consortium that owns the pipeline said that it must abide by the decision, but intends to appeal against it. At the same time, it refused to comment on its activities. A Russian court on Monday 11th July overturned the ruling against CPC and instead fined it 200,000 roubles ($3,300). <\/span><\/span><\/span><\/p>\n

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Kazakhstan – Caspian pipeline<\/em><\/span><\/span><\/span><\/p>\n

\nThe CPC pipeline has been in the spotlight since Russia's invasion of Ukraine, which has curtailed Russian exports and caused a sharp rise in oil prices. The United States imposed sanctions on Russian oil but said that flows from Kazakhstan through Russia can continue to operate without interruption.<\/span><\/span><\/span><\/p>\n

According to the CPC, deputy prime minister of the Russian Federation Viktoria Abramchenkova ordered the regulatory authorities, including the Rostechnadzor technical supervision authority, to inspect the facilities in the Russian part. The inspection allegedly found discrepancies in documents relating to oil spill management plans. Oil leaked from the terminal last year. CPC originally received a deadline of 30. November, but eventually the authorities changed the decision and the court gave them the truth.<\/span><\/span><\/span><\/p>\n

CPC is the only oil export pipeline on Russian territory that is not fully owned by the Russian company Transneft <\/strong><\/span><\/span><\/span>which owns a 24 percent stake in the consortium. Other shareholders include Kazakh company KazMunayGas and American companies Chevron and Exxon. Its length is over 1500 km.<\/span><\/span><\/span><\/p>\n

According to Interfax, the explosion of the pipeline occurred on Wednesday 6th July at the Tengiz field, whose reserves are estimated at 3.2 billion tons. The causes of the explosion, in which, according to Nexta, two people were killed and three others were injured, are unknown.<\/span><\/span><\/span><\/p>\n

The site in the west of Kazakhstan is managed by Tengizchevroil, which is 50% owned by the American Chevron and another 25% by ExxonMobil. In Tengiz, a $ 45.2 billion mining expansion project has now been launched, which was to be completed in 2023. Kazakhstan is in terms of oil production with 1.7 million barrels per day at 11. place in the world, reports the Moscow Times.<\/span><\/span><\/span><\/p>\n

\nThe shareholders of the Caspian Pipeline Consortium are:<\/span><\/span><\/span><\/p>\n

Beginning of July a Russian court ordered that the<\/span><\/span><\/span> <\/u><\/span>Caspian pipeline consortium <\/u><\/span><\/span><\/span><\/a> <\/span>(CPC) must suspend operations for 30 days. The court justified the decision by the possibility of environmental damage. The report adds to global concerns about oil supplies, Reuters warned.<\/span><\/span><\/span><\/p>\n