On 15 February, a scheduled visual inspection of equipment at the Marine Terminal (MT) of Caspian Pipeline Consortium in Yuzhnaya Ozereevka (Novorossiysk) after a storm found a buckle found on the 5th hose of an internal line of the single point mooring (SPM) #2. Such a situation is not extraordinary, a multi-layer design of SPM hoses rules out the possibility of any oil leak. Following standard procedures, the crude oil flow was stopped, block valves shut down.
The current CPC contractor, Lamnalco LLC (founder - Smit Lamnalco Limited, Cyprus) whose duty is to service the single point moorings, refused to do the work of replacing the defective hose upon the pretext of having no technical capability and unacceptable weather conditions. The Consortium reached an agreement for the work to be done in a short time frame with Transneft Service which is replacing Lamnalco as a contractor at the MT from 16 March.
It should be noted that CPC’s activities are making no impact on the environmental situation near Novorossiysk. MT continue instrumental and visual monitoring of water in the sea area, there are no signs of pollution found. Bird deaths reported over the past few days have been attributed by the ecological safety department of the Novorossiysk city administration, as well as members of an ecological board of Kuban’s governor, to abnormally cold temperatures and the depletion of food reserves which regrettably happens during periods of sharp climatic changes.
CPC Marine terminal operations are continuing normally, crude oil loading is on schedule.
The CPC Pipeline System is one of CIS largest energy investment projects that involves foreign capital. The length of the Tengiz – Novorossiysk pipeline is 1,511 km. This route moves over two thirds of all Kazakhstan export oil along with crude from Russian fields including those in the Caspian region. CPC Marine Terminal is equipped with three Single Point Moorings (SPM), allowing tankers to be loaded safely at significant distance offshore, including in poor weather conditions
CPC Shareholders: Federal Agency for State Property Management represented by Transneft (trustee) – 24%, CPC Company – 7%, KazMunayGas – 19%; Kazakhstan Pipeline Ventures LLC – 1.75%, Chevron Caspian Pipeline Consortium Company – 15%, LUKARCO B.V. - 12.5%, Mobil Caspian Pipeline Company - 7.5%, Rosneft-Shell Caspian Ventures Limited - 7.5%, BG Overseas Holding Limited - 2%, Eni International N.A. N.V. - 2%, and Oryx Caspian Pipeline LLC – 1.75%.