Kazakh CPC Black Sea crude exports face major disruption over storm damage: operator

Loadings of Kazakhstan's CPC crude from the Russian port of Novorossiisk risk being reduced due to storm damage to two of the three offshore loading points, with repairs potentially taking an "extended period," the facilities operator said March 22.

In a statement, the Caspian Pipeline Consortium said it anticipated potential difficulty obtaining parts for the repair due to "current market competition," and "unfavorable" weather could also extend the repair process, as well as the need for tankers to help in cleaning operations.

It follows press reports of disruption to loadings of Russia's Urals crude, which also take place at Novorossiisk among other locations.

Earlier, CPC director general Nikolai Gorban described in video footage how recent weather might have damaged the casing of pipes taking crude to the loading points, without causing a spill.

"In this situation, the leadership of the consortium is obliged to announce the possibility of a reduction in the volume of crude transportation... in the near future," the latest statement from the consortium said, referring to a "three-fold" decrease but without elaborating.

Commenting on the situation, Russian deputy energy minister Pavel Sorokin said Russian companies would be among those affected by the problem and voiced confidence in the professionalism of the CPC operating partners, which include majors such as Shell and Chevron.

CPC is a light, relatively low sulfur crude that derives mainly from Kazakhstan's Caspian oil fields, while a small portion, around 10% or less, comes from Russian fields. US Treasury officials have said the crude is exempt from sanctions resulting from Russia's invasion of Ukraine.

Sorokin described the situation as ecologically "extremely dangerous," underlining the need to avoid spills.

"From the information we've received, if material damage to the second single-point mooring facility is confirmed, and there are already signs of damage... there would be significant consequences. Russian companies are also participants so they will be affected. The consequences could be serious and result in harm," he said in video footage distributed by his ministry.

February CPC loading levels amounted to over 1.5 million b/d, making the crude a significant contributor to world markets. CPC accounts for the vast majority of landlocked Kazakhstan's oil exports.