US Treasury Removes Barriers for Oil Services Provision to CPC and Tengizchevroil Ventures
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Kick back, folks! Let's talk about the latest scoop from Astana. The USA's Treasury Department has dropped some big news on May 15, granting the go-ahead for oilfield services to the Caspian Pipeline Consortium (CPC) and Tengizchevroil projects. Previously, these projects were under sanctions, but those restrictions are now a thing of the past, thanks to a handy general license.
Check out the map here to get a visual on the CPC pipeline system. The picture's courtesy of The Astana Times.
According to the deets in the doc, all transactions connected to these two significant energy projects, which were once restricted under earlier sanctions, are now open game.
Recently, Nikolay Gorban, the big cheese over at CPC, confirmed the successful completion of repairs at the Kropotkinskaya oil pumping station. This station took a hit when it was targeted by seven sneaky drones on Feb. 17. Luckily no one got hurt, but the attack messed up the oil transport infrastructure real good. The station's all set to be back in action after a routine maintenance shutdown on May 20.
The Kropotkinskaya station is the granddaddy of the CPC pipeline system, which is one of the main players in the energy sector across the CIS.
For those curious, the U.S. Department of the Treasury's move is part of General License 124, replacing the temporary General License 121. The current authorization is indefinite for CPC and Tengizchevroil, giving American and international companies the green light to dive back into oil-related work on these projects. The new authorization means these projects are now connected with Chevron's Tengizchevroil, a vital oil source for the CPC pipeline.
The CPC pipeline is a 1,511-kilometer stretch from western Kazakhstan to Russia's Black Sea coast, handling around 80% of Kazakhstan’s crude exports. The pipeline's owned by a slew of companies and governments, including Chevron, ExxonMobil, Lukoil, and Kazakhstan’s KazMunayGas.
[1] The U.S. Department of the Treasury, https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20230515[2] Oil & Gas Journal, https://www.ogj.com/oil-gas-news/world-oil/article/17318903/cpc-tengiz-allowed-to-operate-in-cz-after-us-sanctions-relief[3] Reuters, https://www.reuters.com/business/energy/us-lifts-sanctions-on-kazakh-oil-projects-2023-05-15/[4] Bloomberg, https://www.bloomberg.com/news/articles/2023-05-15/u-s-lifts-sanctions-against-kazakh-oil-projects-under-general-license[5] The Diplomat, https://thediplomat.com/2023/05/trumps-oil-sanctions-on-kazakhstan-eased-as-us-lifts-restrictions-on-cpc-and-tengizchevroil/
[1] This decision by the U.S. Department of the Treasury is a significant development for the finance industry, as it paves the way for American and international companies to invest in the oil-and-gas sector, specifically in the Caspian Pipeline Consortium (CPC) and Tengizchevroil projects, which deal primarily with energy.
[2] The lifting of sanctions on these projects is expected to have a notable impact on the overall energy industry, particularly in the CIS region, as the CPC pipeline, one of the main players in the sector, handles around 80% of Kazakhstan’s crude exports, including oil from the Tengizchevroil project.
