First CPC terminal repairs nearly finished - Kazakh PM

Quantum Commodity Intelligence - The first phase of a series of repair works on the loading terminal of Kazakhstan's Caspian Pipeline Consortium (CPC) on the Black Sea are nearly finished, the country's prime minister said Thursday.

"In the next two or three days the repair of the tanker loading unit number one will be completed. Repairs to the second unit will start immediately afterwards. Work on it is scheduled to be completed in two to three weeks," Alikhan Smailov told the country's senate.

CPC has suffered a series of technical and legal challenges this year that have significantly constrained Kazakhstan's oil exports.

Flows were halted in July after storms damaged the pipeline, while in August further damage was discovered on vessel mooring and loading equipment.

That issue compounded when a July court order in Russia threatened to suspend operations in after a series of oil leaks were said to have occurred. A suspension of its operating licence was reduced to a small fine on appeal.

Plans to diversify flows away from Russia through the Caucasus and Central Asia are underway, Smailov said. Kazakhstan wants to ship around 1.5 million mt annually via Azerbaijan from next year, with plans to increase that flow to as much as 6.5 million mt.

The CPC can send 1.5 million bpd via Novorossiysk in Russia when running at full capacity.