World's Energy

13 November 2008 - Upstream OnLine - Kazakhstan wants to buy from Russia roughly half of the 7% stake in the Caspian Pipeline Consortium (CPC) that Moscow has acquired from Oman, a senior Kazakh energy official said today. The pipeline group is led by US major Chevron and includes Russian pipeline company Transneft, ExxonMobil, Shell,Lukoil and BP. The group exports Kazakh and Russian oil CPC-E from a terminal near the Russian port of Novorossiisk. Russia owns 31% in CPC while Kazakhstan has 19%. "We are discussing with Russia a purchase of about 3% out of the 7% (previously owned by Oman)," Reuters quoted Askar Batalov, the Executive Secretary of Kazakhstan's Energy Ministry, told reporters. He said the talks would take "a month or two." Russia's state property agency, which holds Oman's former stake, declined to comment on the issue. Russia is involved in protracted discussions with other shareholders of the group on terms by which the route's capacity could be expanded. Industry sources have said Oman was frustrated with delays in the planned expansion of the route. CPC has been shipping oil since 2001. It pumps up to 750,000 barrels per day to Russia for re-export to the Mediterranean.