Russia Shuts Down Two CPC Moorings, Reducing Kazakhstan’s Oil Exports By 50%

Russia has temporarily shut down two of the three offshore leading moorings at the Caspian Pipeline Consortium (CPC) terminal near Novorossiysk, reducing Kazakhstan’s oil exports by 50%.

The decision was made following safety inspections conducted by the Federal Agency for Transport Supervision after a major oil spill in the Kerch Strait on December 15, 2024.

The shutdown order, effective April 1, affects the SPM-1 and SPM-2 moorings, limiting CPC’s export capacity from 1.4 million barrels per day (bpd) to around 700,000 bpd.

The pipeline itself remains operational, and transshipment is now being handled solely by SPM-3 commissioned in 2014.

On March 26, 2025, Russian authorities launched safety inspections across the Azov and Black Sea regions, targeting facilities involved in handling hazardous cargo.

This initiative was aimed at preventing oil spills and environmental contamination. The inspections covered companies operating in key Russian ports, including Novorossiysk, Temryuk, Sochi, and Tuapse.

An unscheduled onsite inspection was carried out at CPC’s marine terminal from March 27 to 31st. After this, authorities issued an inspection act, a citation for violations, and a protocol imposing a temporary ban on operations at SPM-1 and SPM-2.

The Russian Maritime Register of Shipping also suspended the classification of these two moorings from March 31. The CPC pipeline is the main export route for Kazakhstan’s crude oil, handling 80% of the country’s total oil shipments.

This includes production from major US oil companies Chevron and ExxonMobil. Kazakhstan’s ability to export crude oil has been significantly reduced with two moorings now offline.

Industry experts predict that if the restrictions continue, storage capacity will fill up quickly, forcing operators to cut production. The Tengiz oil field, a Chevron-led project responsible for around 700,000 bpd, could face disruptions.

Chevron has invested $48 billion into expanding Tengiz’s output to increase production to nearly 1 million bpd by mid-2025.

If the restrictions are not lifted, Kazakhstan’s overall oil exports will remain capped at 1 million bpd, taking 700,000 bpd off the global market.

Kazakhstan has been struggling to comply with OPEC+ quotas. The country has consistently exceeded its production limits, largely due to Western oil companies refusing to scale back output after investing billions in expansion projects.

In March, Kazakhstan’s crude and gas condensate production reached a record high of 2.17 million bpd. Analysts say the country’s oil exports will drop temporarily to meet OPEC+ limits due to the shutdown of the CPC terminal.

CPC shareholders, including the Russian government (which holds a 24% stake), Chevron and ExxonMobil have been informed about the regulatory action.

As per Russian legislation, CPC has taken both moorings out of service until the required safety improvements are made.

Reference: CPC

Source: Maritime Shipping News