Under the Ruling of the judge of Primorsky District Court of Novorossiysk, Krasnodar Krai, JSC "Caspian Pipeline Consortium-R" has been sentenced to administrative suspension of activities for thirty (30) days by virtue of Part 4, Article 14.1.2. of the RF CoAO.
Pursuant to Article 32.12 of the RF CoAO, a ruling of a judge, body, official, who imposed an administrative penalty in the form of administrative suspension of activity, is executed by the bailiff-executor of the ruling immediately after the issuance of such a ruling.
In the event of administrative suspension of activity, sealing of premises, places of storage of goods and other tangible assets, cash desks, as well as other measures for execution of the actions specified in the Ruling on administrative suspension of activity, necessary for execution of the administrative punishment in the form of administrative suspension of activity, shall be applied.
At the same time, the law does not allow the application of measures that may lead to irreversible consequences for the production process.
CPC-R JSC is a business with pressing continuity, immediate suspension of its activity may lead to irreversible consequences for the operation process, emergence and development of an adverse and uncontrollable process at a technical facility, including its destruction, since the process requirements for oil transportation do not allow the immediate and simultaneous shutdown of operation.
The possibility of occurrence of the aforesaid negative consequences in the event of immediate suspension of activities allows CPC-R JSC to apply for suspension of execution of the Ruling issued by the judge of Novorossiysk Primorsky District Court dated 5 July 2022 on Case No. 5-1188/2022 on administrative suspension of activities of CPC-R JSC until the judicial act which will be passed on the results of consideration of the sent complaint enters into force.
Given the above stated, CPC-R sent its petition to Novorossiysk Primorsky District Court with a request to suspend the execution of the judge's Ruling of 5 July 2022 on Case No. 5-1188/2022 on administrative suspension of CPC-R's activities until the judicial act, which will be passed on the basis of the consideration of the complaint against the Ruling enters into force.
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%.