Page 10 - FSUOGM Week 25 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Kazakh oil exports via Novorossiysk

set for further disruption

KAZAKHSTAN RUSSIA is reportedly suspending the flow of until the end of the month, during which time
oil from Kazakhstan to Europe via a terminal the terminal’s capacity will be restricted.
The terminal suffered at the Black Sea port of Novorossiysk this week, Kazakhstan annually supplies 67mn tonnes
disruptions in exports Moscow-based Kommersant reported, poten- (1.35mn barrels per day) of oil to Europe and
earlier this year as well. tially putting two-thirds of Kazakh oil supply other westward markets through Russia. How-
at risk. ever, Kazakh Energy Minister Bolat Akchulakov
The intermittent closure is necessary so that has said the temporary suspension in oil ship-
unexploded World War 2 ordinance can be ments from Novorossiysk should not affect the
removed from the seabed, Kommersant said on country’s overall export volumes.
June 18, citing sources. But the disruption also Kazakh exports from Novorossiysk were also
comes at a time when global oil prices are already restricted between March and May, due to dam-
soaring and Europe is scrambling to phase out age to Mooring units at the terminal caused by a
Russian supply in light of Moscow’s actions in storm. It is estimated that the difficulties resulted
Ukraine. in 1mn bpd of oil supply not reaching the market
A port official told the newspaper that the while repairs took place.
launch of Russia’s war in Ukraine meant that nec- Kazakhstan is also having problems differ-
essary surveying work could not be completed. entiating its oil from Russian crude. Both are
“Some of these [ordinance] items are known branded as Urals because of their similar qual-
to be located less than 100 metres fron the subsea ities, which means Kazakhstan suffers from
pipeline to the [loading buoy,” the official said. traders shunning Russian oil as well as the hefty
|The work is really dangerous.” discount that Urals is trading at as a result. It
Work on clearing the water area was sched- plans to rename its oil export brand to get over
uled to start on June 20 and operations could run this problem. ™

P10 www. NEWSBASE .com Week 25 22•June•2022