EXCLUSIVE Kazakh oil flows caught in Russian export problems, traders say

An inside view reveals a brand new pumping station of the Caspian Pipeline Consortium (CPC) close to town of Atyrau, Kazakhstan October 12, 2017. REUTERS/Mariya Gordeyeva

LONDON, March 1 (Reuters) – The CPC pipeline that ships 1.2% of the world’s oil from Kazakhstan to world markets has been caught in Russian sanctions issues in latest days as patrons keep away from its oil due to combination with Russian grades and loadings from a Russian port, merchants stated.

5 merchants, who spoke with Reuters on situation of anonymity, stated patrons have been avoiding CPC for supply in late March.

They stated CPC exports oil from Russia’s Novorossiisk port and mixes it with Russian grades, which deterred most patrons and made it tough to seek out insurance coverage for the ships.

CPC ships about 1.2 million barrels per day (bpd) of oil, equating to 1.2% of worldwide provide, from Kazakhstan fields developed by Chevron (CVX.N), Exxon Mobil (XOM.N), Eni and Shell (SHEL.L) in addition to from Russia.

CPC declined to remark.

The most important exporter alongside the route, Tengizchevroil, declined to touch upon industrial issues however stated manufacturing and exports have continued as regular to this point.

Reporting by Dmitry Zhdannikov
Modifying by David Goodman

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